“ We’ ve weathered many cycles in our company’ s 50 + years history, and we know
that a long-term perspective, backed by strong fundamentals, wins.” – Wayne E. Chaplin, president and CEO of Southern Glazer’ s
Where does Heaven Hill see growth?
“ We are seeing our agave portfolio as a standout success with Lunazul and Tequila Ocho positioned in two distinct sweet spots for the category and really leading category growth,” Blevins explains.“ Our premium bourbons, led by Elijah Craig, are performing well even as the category unwinds from the highs of the pandemic era, and our recent launch of Old Fitzgerald 7 Year is off to a fantastic start, though still somewhat limited by supply.”
“ We launched Deep Eddy Pineapple this year and have seen that brand respond very well to its focus on real fruit and authentic vodka from Austin, TX,” he adds.“ Our partnerships in the sports arena align our brands with key passion points for a broad audience with Evan Williams Bourbon Nation leading the way as we approach tailgate season with fans of college football and the most prominent teams. Hpnotiq has recently partnered with the UFC, which is not only a fast growing sport but also a lifestyle brand itself. We continue to believe that being‘ in real life’ and showing up for consumers and bartenders is important.”
DISTRIBUTORS NAVIGATING THE ECONOMIC STORM
After an extraordinary period of growth fueled by pandemic-era consumer habits, the middle tier of the beverage alcohol industry now faces a challenging economic reality. A combination of factors including persistent inflation, shifting consumer preferences and lingering supply chain issues has put significant pressure on distributors.
While the market for some categories, such as ready-to-drink cocktails and certain premium spirits, continues to grow, overall industry volume is declining. Wholesalers are grappling with overstocked inventories, rising operational costs and a fundamental change in how consumers choose to spend their money.
Despite the gloomy outlook, Southern Glazer’ s Wine & Spirits continues to remain focused on its employees and deepening its relationship with both suppliers and customers.
“ We’ ve weathered many cycles in our company’ s 5 + year history, and we know that a long-term perspective, backed by strong fundamentals, wins,” says Wayne E. Chaplin, president and CEO of Southern Glazer’ s.“ We have the scale and financial strength to maintain continuity of service, invest through the cycle and innovate in ways that help our partners succeed— whether the market is up or down.”
Breakthru Beverage Group is another distributor that has choosen to power through the madness instead of letting the economic uncertainty shake them.
“ We’ re leveraging this moment not just to navigate headwinds, but to position ourselves for long-term growth, while continuing to deliver best-in-class service to our partners,” says Julian Burzynski, EVP and chief operating officer of Breakthru.“ We are optimistic about the future of the industry and Breakthru has had a lot of recent momentum.”
Burzynski explains that Breakthru is responding to the current market conditions in the following ways:
1. Operations: Breakthru has been accelerating actions to streamline its operations, identify efficiencies, focus on safety and leverage data insights to inform its go-to-market strategy.
2. Supplier wins: Breakthru has a diverse portfolio and has had several recent supplier wins, with its team continuing to pursue opportunities for growth.
3. People: Breakthru is invested in employee growth and development, continuously expanding learning and development opportunities across all levels of associates so teams can stay educated and agile.
While both Southern Glazer’ s’ and Breakthru’ s robust distribution systems are keeping the companies alive, other wholesalers have not been so lucky. Republic National Distributing Company( RNDC), for example, closed its California operations on September 2, 2025.
Interim CEO Bob Hendrickson has issued a preliminary statement following a company town hall meeting held on June 2, 2025, stating:“ We’ ve made the difficult business decision to withdraw from California, which affects many of the roles in the state. We are complying with all regulatory obligations and are committed to handling every transition thoughtfully and smoothly and ensuring everyone is treated fairly and respectfully. We are grateful for the support of these employees and will do our best to support them during this time.”
Hendrickson also mentioned that this decision was made as a result of " rising operational costs, industry headwinds and supplier changes that
24 Beverage Dynamics • Fall 2025 www. beveragedynamics. com