made the market unsustainable," and not because of the California team ' s lack of performance.
USING TECHNOLOGY AS A LIFELINE
Despite rising costs, Southern Glazer’ s continues to make investments in the company to help drive value for both its customers and suppliers.
“ On the technology front, we continue to refresh and add new features to our industry-leading Proof ecommerce platform, including improved log in, search and AI-powered recommendations, which are making it easier for customers to access Proof and build their orders,” notes Chaplin.
Technology has proven to be a smart investment opportunity for Southern Glazer’ s, allowing the distributor to improve the effectiveness of its logistics and operations. Utilizing AI / ML in forecasting and replenishment processes, for example, has resulted in improvements in accuracy and fill rates.
“ Our wholly owned subsidiary, ANKAA Global Logistics, is growing with additional 3PL services as we continue to drive opportunities for our suppliers,” Chaplin adds.
Breakthru has also made significant investments into technology, with Burzynski saying that the company has invested“ more than $ 75 million into its operational capabilities across its footprint by expanding warehouse capacity, incorporating new technologies and bolstering automation.”
At the beginning of 2025, Breakthru appointed Glenn Remoreras as chief information officer, who has been making additional improvements to the company’ s IT infrastructure and digital capabilities.
“ We’ ve invested in new data sources and analytics platforms that put the consumer at the heart of our operations,” explains Burzynski.“ This has led to promising results, ensuring we have the right product in the right account ready for the right consumer. Our advanced analytics capabilities are also being utilized to enhance our execution in high-opportunity areas like no- and low-alcohol.”
FACILITY AND OPERATIONS EXPANSIONS
Aside from technology, distributors have also made investments in warehouse operations to stay afloat during uncertain times.
RNDC, for example, recently invested in its Texas operations. With the distributor no longer operating in California, this has allowed for additional effort to go into expanding operations in different states.
“ We’ ve taken a close look at where we are— and more importantly, where we need to be,” says Taylor Sommer, chief sales and execution officer at RNDC.“ After listening to our associates, customers and supplier partners, one thing is clear: We need to strengthen our presence and performance in the market. Texas is a critical part of our foundation, and we’ re proud to reinvest here.”
Similarly, in early 2025, Breakthru added a new facility in Tampa, FL.
“ We’ re very excited about the investment,” notes Jeff Ortmeier, Breakthru’ s EVP for Florida.“ It’ s important not only to the Breakthru system, but also to our suppliers, since Florida is typically at the top of their markets.”
The new Tampa facility includes upgraded spaces designed to enhance employee comfort, foster connection and support overall associate satisfaction. Breakthru also installed new equipment, adding nine palletizers and a high-speed dispenser, allowing the distributor to continue to grow without negatively impacting customer service.
“ Breakthru made sure that there was a significant investment in building capacity for the future of the company,” explains Ortmeier.“ Our goal is to increase customer expectations and make sure we are the distributor of choice, so we doubled the size of the facility to 100,000 square feet.”
“ After listening to our associates,
customers and supplier partners, one thing is clear: we need to strengthen our presence and performance in the market.”
– Taylor Sommer, chief sales and execution officer at Republic National Distributing Company
ON-PREMISE AFFECTED
While all sectors of the beverage alcohol industry have been feeling the pressure from inflation, the threat and implementation of tariffs and people drinking less overall, the on-premise is getting squeezed even harder for a number of reasons. One is that consumers tend to cut back on going out in times of economic uncertainty.
Restaurants also face rising costs of goods at a time when many guests are more price sensitive. And given the tight margins and the fact that they make most of their profit on alcoholic beverages, it hurts when on-premise operators have to pay more for products, and when customers aren’ t consuming as much.
The full-service chains that have filed for Chapter 11 bankruptcy in just the past six months include On The Border, Bertucci’ s, Bar Louie, Hooters of America and Bravo Brio Restau- www. beveragedynamics. com Fall 2025 • Beverage Dynamics 25