Wines & Vines

September 2017 Distributor Market Issue

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September 2017 WINES&VINES 33 DISTRIBUTOR MARKET 2017 Breakthru Beverage Group Headquarters: New York, N.Y., and Cicero, Ill. States served: 15 Offices: 37 U.S. wineries represented: 691 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 prod- ucts from 691 wineries into 15 states from its sales force in 37 offices, according to Wines Vines Analytics. Breakthru is a relatively new company in its present form, being the result of M&A activity that brought the Charmer Sunbelt and Wirtz distribution companies together as of early 2016, along with 15 other companies they had gathered in recent years. Operating in mostly central, eastern and southern states, Breakthru has headquarters in both New York City and Illinois. Its 2016 revenues were estimated at $5.4 billion by Forbes. "By working as an efficient and collaborative wholesaler across multiple markets, we can improve speed to market for our partners and better coordinate and activate brand marketing strategies," now-presi- dent and CEO Greg Baird noted at the time of the merger. "We can make investments in both our markets and our people." Baird previously was president and COO of Charmer Sunbelt Group, where he oversaw all aspects of the company's operations. His résumé also includes being president of Reliable Churchill, a prominent distribu- tor in Maryland. Representatives from two long-time distributor families are co- chairmen of Breakthru: Charles Merinoff has worked for his family's beverage-distribution business since 1980. In 1991, he became president of Charmer Industries, the family's metropolitan New York beverage business. In 1994 he led the acquisition of Sunbelt Beverage Corp., and in 1997 the wholesale companies in which the family had an interest became known as the Charmer Sunbelt Group. W. Rockwell "Rocky" Wirtz is the other co-chair, representing the third generation of his family in the beverage business. Wirtz also serves as chairman of Wirtz Corp., one of the largest privately held and family- owned companies in the United States. Young's Market Co. Headquarters: Tustin, Calif. States served: 11 Offices: 54 U.S. wineries represented: 663 Chairman: Vern Underwood CEO: Chris Underwood President: Rick Gillis Of the companies on the "Top 10" list of wine distributors, Young's Market Co. is the only one based on the West Coast. It serves 663 wineries in 11 western states from its headquarters in Orange County, Calif. Young's has com- pleted its share of mergers and acquisitions, absorbing six other companies since 2010, including regional leader Columbia in Or- egon and Washington. The family-owned company reports annual revenue of more than $3 billion and has a staff of 3,000 employees. Young's was a retail market business when it began in downtown Los Angeles in 1888 and grew to include 60 retail locations by the 1930s. After Prohibition, Young's got into wine and spirits and oper- ated a Dr. Pepper bottling plant before focusing exclusively on bever- age alcohol. Chairman Vern Underwood began his career in the Young's ware- house in 1955. He ultimately became the fourth generation to lead Young's Market Co. and now serves as chairman of the board of parent company Young's Holdings. Wilson Daniels, the Napa Valley- based marketing company with a portfolio of luxury wine brands, also is owned by Young's Holdings. Chris Underwood started with the company in 1996 and is now chief executive officer. He oversees all Young's business operations. Underwood also serves as a member of the board of directors of Young's Holdings. As president of Young's Market, Rick Gillis provides strategic di- rection and operations management for a multi-state distribution network. Gillis is a 20-year veteran of the sales and distribution divi- sions of some of the most well-known consumer packaged goods organizations in the United States. He worked 15 years with Coca- Cola Enterprises and was group vice president of Dean Foods Co. 3 Chris Underwood Greg Baird 4 TOP 10 U.S. WINE DISTRIBUTORS 1 Southern Glazer's Wine & Spirits 6 Heidelberg Distributing Co. 2 Republic National Distributing Co. (RNDC) 7 Wine Warehouse 3 Breakthru Beverage Group 8 Martignetti Cos. 4 Young's Market Co. 9 Empire Merchants 5 Johnson Brothers Liquor Co. 10 Winebow Group Source: Wines Vines Analytics.

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