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MI- Kent Beverage & WY - B&B Beer merge to form Alliance Beverage

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  • MI- Kent Beverage & WY - B&B Beer merge to form Alliance Beverage


    GRAND RAPIDS, MI — A pair of family-owned West Michigan beverage distributors are joining forces.

    Kent Beverage of Wyoming and B&B Beer Distributing of Grand Rapids announced that the two companies are consolidating to form a joint venture called Alliance Beverage Distributing, which will become the area’s largest complete beverage wholesaler.

    “It just makes a lot of financial sense,” said Shawn Gary, Kent Beverage president who is taking the helm of the new company as president of Alliance.

    Gary said the two companies will formally become one under the Alliance brand in the next couple months. Both are family-owned, locally based, and distribute as MillerCoors ‘houses,’ selling macro domestic brands like Miller Lite, Pabst Blue Ribbon and Blue Moon to retailers within their respective footprints.

    The Anheuser-Busch distributer in West Michigan is West Side Beer.

    Kent Beverage carries Michigan craft brewers like Bell’s, Founders, Brewery Vivant, as well as Dark Horse of Marshall, Keweenaw Brewing of Houghton and Greenbush of Sawyer. B&B carries Dragonmead Brewing of Warren and Mount Pleasant Brewing Co.

    In addition to beer, the new Alliance will sell most Michigan wines, Constellation and Treasury Majestic wine brands, and non-alcoholic beverages like Red Bull, Faygo soda and other niche brands like Juicy Juice and Henry Weinhards soda.

    With the consolidation, the new Alliance network now stretches from the Michigan-Indiana state line north to Manistee County and east through Mount Pleasant and Lansing. The consolidation adds B&B counties like Mecosta, Montcalm, Clare and Isabella to the Kent Beverage network.

    B&B’s vice president of sales, Kevin Sullivan, who is becoming Alliance’s new vice president, said the venture will allow the new company to grow its brand portfolio.

    “Alliance positions our two companies and the hundreds of people we employ to stay ahead in today’s economy, positioning us for future growth and longevity in this industry,” he said in a statement.

    The company’s corporate offices will operate from the current Kent Beverage headquarters at 650 36th St. SE in Wyoming. Combined, the new Alliance will employ more than 300 people, and a statement announcing the move said, “Alliance expects to maintain its current workforce and retain the existing management team.”

    B&B has about 95 employees, said company controller Tim Sullivan. Gary said the companies are in the process of cross-training staff. Sullivan said the B&B headquarters at 505 Ball Ave. NE "will stay in use for a while."

    “It’s a good thing for all of our business partners,” said Gary. “Whenever you combine two companies together, there’s synergies and efficiencies created that free up revenues and profits to reinvest back into the market.”

    Distributor consolidations can sometimes be worrisome for smaller craft brewers due to the overwhelming dominance in the beer industry by Anheuser-Busch-InBev and MillerCoors, two players which together control about 75 percent of the market in terms of sales volume.

    As dictated by the three-tier system in Michigan, distributors — which buy beer from brewers and sell those kegs and bottles to stores, bars and restaurants — represent many different brands, large and small, during a potential sale.

    Jason Spaulding, co-owner of Brewery Vivant, which currently distributes in Michigan through Kent Beverage, said the company “has been fantastic. They get it and represent our brand well.”

    “Craft beer is near to their heart and they put a lot of effort into it,” Spaulding said. “I don’t expect that to change.”

    Gary said Kent Beverage has been growing about 10 percent during the last several years due to the company’s brand portfolio diversification.

    “I don’t think the consumer should read anything into this," Gary said. "Two very strong, good families are coming together to try to build a stronger company together.”

    There has not been discussion about trying to bring other West Michigan distributors into the fold, he said.

    Both companies have deep roots in West Michigan. The third generation of the Gary family works at Kent Beverage today, and B&B is now being managed by the second generation of the Sullivan family.

    “The Garys and the Sullivans have known each other for a very, very long time,” he said. “There’s a lot of similarities between the families; the way we do business, our values. It’s a great opportunity come together as business partners.”

    Email Garret Ellison or follow him on Twitter.
    Cheers!
    Banjo Bandolas
    Probrewer.com
    v- 541-284-5500
    banjo@probrewer.com
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