What Next in Miami?

A-B buys distributor.

Anheuser-Busch ended a dispute with its Miami distributor on Tuesday by buying it.

Earlier this year, Eagle Brands had sought to sell out to Gold Coast, an “all-other” distributor. But A-B opposed the sale. A legal fight ensued.

Beer industry observers were unsurprised by the end game. Said Beer Marketer’s Insights:

"As for De La Cruz family (owners of Eagle Brands), all it really wanted was to sell its business to highest bidder anyway. A protracted legal fight also expensive, risky and stressful for them."

While the issue is settled for now, it begs the question of what happens next. That’s because A-B can only own a branch for six months under state law.

From Beer Business Daily:

"The big question is what A-B is going to do with the company. Wise men often counsel us to be careful what we wish for…..we might actually get it. Eagle Brands is a low share A-B distributorship – it’s not a knock against the de la Cruz family, but more of a macro-trend in the area spurred along by Gold Coast (like riding a wild horse and spurring it wildly while also guiding, somewhat. Or something … In these situations A-B sometimes puts a family member, former executive, or friend in those types of spots. We’ll see, so stay tuned."

The Beer Marketer's Insights home page is here.

The Beer Business Daily home page is here.