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September 2018 WINES&VINES 33 DISTRIBUTOR MARKET 2018 Breakthru Beverage Group Headquarters: New York, N.Y. States served: 16 Offices: 37 U.S. wineries represented: 629 Co-chairmen: Charles Merinoff and W. Rockwell Wirtz President and CEO: Greg Baird Breakthru Beverage ranks third among the top wine distributors in the United States, selling products from 629 wineries into 16 different states from 37 of- fices, according to Wines Vines Analytics. Breakthru, in its pres- e n t f o r m, is t h e re s u l t o f a merger between Chermer Sun- belt and Wirtz distribution com- panies in early 2016, along with 15 other companies they had acquired in previous years. In July 2018, the company announced a signed agreement to merge its New Jersey wholesale market with Allied Beverage Group. "We have found a great partner in Breakthru and look forward to combining their strong practices with our own. …Our aim is to bring even greater value to our customers and supplier partners," said Allied Beverage Group president and CEO, Jeffrey Altschuler, in a statement. The integrated company will operate under the name Allied Bev- erage Group and together will continue to be the state's leading distributor with annual revenues exceeding $1 billion, according to the joint announcement. Young's Market Co. Headquarters: Tustin, Calif. States served: 11 Offices: 56 U.S. wineries represented: 693 Chairman: Vern Underwood CEO: Chris Underwood The fourth largest wine distributor, Young's Market Co., is currently serving 693 wineries in 11 states from its headquarters in Orange County, Calif. Young's has absorbed six other distribution companies since 2010, including Columbia in Oregon and Washington. In May 2018 Wilson Daniels (WD), which is a New York-based subsidiary of Young's Holdings, announced the acquisition of Oregon-based Galaxy Wine Com- pany from founders Matt Elsen and Bob Liner. Once the merger is complete, Galaxy will operate under the wholesale division of importer Wilson Daniels LLC. Galaxy will continue to be led by Elsen and Liner under the direction of Wilson Daniels president Rocco Lombardo. Galaxy's portfolio numbers more than 400 producers, including wines from A to Z, Vineyard Brands, Dalla Terra, Elk Cove, Maisons Marques & Domaines, Kermit Lynch and Domaine Serene. Young's, already present in the Oregon distribution market, projects 2018 gross revenues of $200 million in the state. Total revenues across the company's 11-state footprint is expected to reach $3 billion in 2018, according to the company. 3 Chris Underwood Greg Baird 4 CONSOLIDATION OF U.S. WHOLESALERS 1995 2018 1,800 wineries 1,200 wine distributors 3,000 wine distributors 9,700 wineries Source: Distributor sources and Wines Vines Analytics.