In a deal involving two major regional wholesalers, Markstein Beverage Co. of Sacramento said Tuesday it’s buying the beer distribution business of Nor-Cal Beverage Co. Inc.
Terms weren’t disclosed. The deal is expected to close by year end.
“This is a great opportunity for us to combine,” said Hayden Markstein, president and chief executive of Markstein Beverage. “Obviously, it expands the size of our business.”
The deal expands Markstein’s beer distribution into Placer, El Dorado, Nevada and portions of Alpine and Sierra counties. Markstein already distributes in Sacramento, Solano, Yuba, Sutter and parts of Yolo County.
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By bringing those additional counties under its umbrella, Markstein should be able to distribute beer more efficiently to retailers. “Hopefully, they can pass along some of those efficiencies to consumers,” Markstein said.
Nor-Cal said the deal will enable it to increase its contract-manufacturing business, which produces juice, tea, energy drinks and other beverages from production facilities in West Sacramento and Anaheim. The company, which is based in West Sacramento, also has a business that installs and maintains commercial food equipment.
As for Nor-Cal’s beer business, “it was a difficult decision to sell this segment of our business after 50 years of operation,” said Nor-Cal CEO Shannon Deary-Bell in a prepared statement.