Breakthru Beverage Group said it agreed to acquire California-based Wine Warehouse, further expanding the Breakthru's footprint to the largest U.S. beverage alcohol market. Terms weren't disclosed.
"We intend to make significant investments and be a competitive force in the market," said Tom Bené, Breakthru Beverage president and CEO. "Breakthru has built a consistent and scalable business that makes us a very attractive partner to both suppliers and customers nationwide. We will bring a consumer-led approach as we unite the expertise of the California team with the culture, scale and capabilities that Breakthru can provide to grow the business."
Wine Warehouse is a multi-generational, family-owned and -operated, wholesale distributor of fine wine, beer and spirits for California. The company was established in 1973 by passionate wine collectors Bob and Jim Myerson and successfully expanded to be the third largest wholesaler in California, and a Top 10 wholesaler in the country. The move is Breakthru's third acquisition in the last year following Major Brands in Missouri and J.J. Taylor in Minnesota.
"The dynamics of the industry are changing and the momentum we have makes this an ideal time to begin the next chapter with Breakthru. We know they will invest in growing the business, bring innovations to the market and use their strong relationships and expertise to distinguish us among both the suppliers and customers we serve," said James P. Myerson, Wine Warehouse chairman/CEO.
Bené added, "We are committed to maintaining the existing strong leadership team in California and have the utmost confidence that they will continue to deliver as a strong marketplace option on behalf of our supplier and customer partners."
Breakthru said it will use its expertise and financial strength to make investments that expand and improve the Wine Warehouse customer and consumer-focused strategies. Wine Warehouse has a premium wine, spirits, beer and non-alcoholic beverage portfolio that aligns well with Breakthru's national supplier partners and has upside growth potential across the market and all channels. The transaction is expected to close this spring and is subject to usual and customary closing conditions.