INSIGHTS Express
March 05, 2010
LAND OF THE GIANTS: MCLANE'S BUYING GA SPIRITS DISTRIB, EMPIRE
Fascinating somewhat leftfield development as distribution giant
McLane's ($31 bil subsidiary of Warren Buffett's Berkshire
Hathaway) has deal to buy Ga/NC spirits distrib Empire (also sells
Boston Beer, Sierra among other beer brands). Gotta imagine this
purchase is just the beginning. Unlikely a behemoth like McLane's
got into spirits distribution for just this one deal alone. Bill
Anderson's First Beverage Group, including ex-GE Capital exec Sean
McLaren, served as advisor. Recall that Berkshire Hathaway also has
$11 bil stake in Coke and formerly had big stake in AB. Entry of
McLane's into alc bev distribution along with recent Coke deal to
buy CCE represent sweeping changes on DSD distribution landscape.
So Warren Buffet will be in alc bev distribution biz.