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Breakthru Beverage, RNDC sign LoI to create $12bn company

DBR Staff Writer Published 21 November 2017

Breakthru Beverage Group and Republic National Distributing Company (RNDC) have signed a letter of intent (LoI) to combine their assets and operations that would see the creation of a $12bn company.

RNDC distributes wine and spirits across the US, employing over 9,500 people nationwide.

Breakthru employs more than 7,000 people representing a portfolio of wine, spirit and beer brands in the US and Canada. 

RNDC president and CEO Tom Cole said: “The merger of RNDC and Breakthru will create strategic opportunities that will benefit our associates and our business partners in a rapidly changing and highly competitive marketplace.

“Much more than a growth opportunity, we are entering this venture to create something that is different, sustainable and transformative.

“Together, our deep bench of focused, diverse associates will bring great and unique advantages to our suppliers, our customers and the consumers who enjoy the products we represent.”

The companies also stated that beyond the alcohol industry, there are significant changes taking place in the retail marketplace.

The merger can help bring investments in new technology that can enhance several aspects of the business ranging from supply chain management, customer and supplier connectivity, e-commerce, predictive analytics, digital marketing, data transparency, consumer experience and operational efficiency.

Breakthru Beverage Group president and CEO Greg Baird said: “We see this as the launch pad to bring innovation to life and to usher in a new era for our business and industry.”

“Across North America, the combined company of RNDC and Breakthru will benefit from a broadly expanded footprint, a passionate and creative team, and an uncompromising commitment to providing innovation, value and service to all our stakeholders.”

Under the proposed merger terms, the new company’s CEO will be Tom Cole. Bob Hendrickson will serve as the chief operating officer, Danny Wirtz will be the chief growth and strategy officer and Greg Baird will be the chief integration officer.

Subject to regulatory approvals and other closing conditions, the merger is expected be completed in the second quarter of next year.

Image: The merger is expected to bring beneficial in a rapidly changing alcohol beverage market. Photo: Courtesy of Stuart Miles/FreeDigitalPhotos.net.