A Supplier's Guide to Middle-Tier Consolidation

"When you're notified of a transaction, you should look at that as an opportunity, Shustack said. It's an opportunity to evaluate the market. It's an opportunity to maybe get a new contract in place. It's an opportunity to maybe get some additional marketing commitments. You have leverage and there's not a lot of time in a supplier-wholesaler relationship where you have leverage, she continued. This is one of the few times that you do. You want to make sure that you're thinking about it early."

"Instability across the middle tier shows no signs of letting up. Breakthru Beverage Group announced a restructuring this week that will result in about 500 jobs cut. Last fall, Republic National Distributing Company (RNDC) abandoned its California business after several major spirits suppliers terminated it. Earlier in 2025, the craft distribution business in Southern California got a seismic shock when Hand Family Companies acquired Stone Distributing and Classic Beverage to form Sunset Distributing."

Distributor consolidation and middle-tier instability are shrinking traditional routes to market and disrupting supplier access. Major restructurings and acquisitions have removed or reshaped regional wholesaler relationships, creating gaps and new negotiating windows. Suppliers gain short-lived leverage when notified of transactions and can use that leverage to evaluate markets, pursue new contracts, and extract marketing commitments. Early engagement during transactions increases chances to preserve or improve distribution terms. The intoxicating hemp sector faces a looming November 2026 prohibition, while Congress may delay or modify that ban, leaving regulatory outcomes uncertain and requiring supplier vigilance.

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