Beer wholesale distributor merger stalled (PA)

Discussion in 'Mid-Atlantic' started by dgs, Feb 22, 2012.

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  1. dgs

    dgs Initiate (0) Jul 18, 2005 Pennsylvania

    Anyone have more info than what's available in this limited article?

    "Beer wholesale distributor merger stalled
    Yuengling distribution at crux of brewing battle
    Philadelphia Business Journal
    by Natalie Kostelni, Reporter
    Date: Friday, February 17, 2012
    An estimated $100 million deal to create one of the largest beer wholesale distributors in Pennsylvania has been thwarted for now, tied up in a legal battle that could have implications for the state’s beer industry."
    http://www.bizjournals.com/philadel.../02/17/beer-wholesale-distributor-merger.html
     
  2. MusicaleMike

    MusicaleMike Savant (1,220) Mar 17, 2008 Pennsylvania

  3. Blanco

    Blanco Savant (1,243) Oct 11, 2008 Pennsylvania

    Looks like an ugly mess. Wondering how this effects craft beer more than Yuengling and Miller though.
     
  4. yankeefan287

    yankeefan287 Initiate (0) Feb 23, 2012 Pennsylvania

    Unfortunately, Origlio has the sole rights to great breweries such as Russian River in eastern Pennsylvania. I have been waiting for this deal to go through to start trying some of these awesome brews, but it has been temporarily thwarted by the likes of Yuengling.
     
  5. MusicaleMike

    MusicaleMike Savant (1,220) Mar 17, 2008 Pennsylvania

    Here is what I got from that whole mess:

    All Star wanted to sell their business to Origlio for $100 Million
    Origlio wants to purchase All Star for $100 Million, but only if they get the rights to sell Yuengling in Berks County
    Yuengling does not want Origlio to sell their beer in Berks County, and was attempting to transfer the distribution rights to Gretz
    oh...and everyone is suing everyone.

    This legal battle means a precedent will be set for the future, and it will define who really has the rights behind a beer when a "transfer" is happening. Does the brewery have any say whatsoever in who sells their product, or does the primary wholesaler get to make that decision once the brewery has signed an initial contract. I for one hope that the brewery wins...it only makes sense that a brewer should have ultimate control of their product, not the wholesaler.
     
  6. waddsworth

    waddsworth Initiate (0) Oct 17, 2006 Pennsylvania

    Thanks, government. Your three-tier system works wonderfully!
     
  7. ThoreauLikeAGirl

    ThoreauLikeAGirl Initiate (0) Mar 11, 2011 Pennsylvania

    i wonder why Yuengling doesn't want Origlio to have the rights to Yuengling out that way? Do they have a grudge against them? Or are they using their power and right to say 'no' as a way to make a point because they don't want a monopoly to occur or something? The latter would be kind of cool, but i have a feeling that's not it.
     
  8. MusicaleMike

    MusicaleMike Savant (1,220) Mar 17, 2008 Pennsylvania

    I found the best breakdown of PA Beer Laws, but I think I will start another thread with that gem. ThoreauLikeAGirl, I will just make a quick response to your hypothesis: I also don't think that Yuengling would do that (turning down a 100 million dollar deal!!) to make a statement because they are actually distributed by Origlio already in Philadelphia (and the surrounding counties as far as I know). I'm sure it's more complex than that Business Journal article indicates, but my guess is that Yuengling is looking for a new wholesaler in Berks County plain and simple. There may not have been a grudge before, but I guess there is one now...typically you don't sue the brewery that you are partners with (?!?!) F'd up man. More messy than I originally thought.
     
  9. ThoreauLikeAGirl

    ThoreauLikeAGirl Initiate (0) Mar 11, 2011 Pennsylvania

    Yuengling is not losing or gaining any money by this. Either way, they are already being distributed in the Berks County region. It just depends on who the distributor is. Origlio is out to make more money by taking over the region, not Yuengling.
     
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