Yuengling in Ohio: Terminate

FILED MAY 22, 2013

Dear Client:

Yuengling ain't happy with the situation in Lima, Ohio where its distributor, C&G Distributing, is selling to A-B, while it has been apparently left out in the cold. In a statement this afternoon, Yuengling says "we are not part of the transaction, which is their right but has consequences. Since we have not been formally notified and we are left guessing as to the true nature of the transaction and what it means for our family of brands in the Lima/Versailles, Ohio territory, we can only interpret this change of events as our wholesaler seeking to terminate its relationship with our company. As such, we believe we have the right to accelerate that unilateral termination in order to ensure that our valued customers in the great State of Ohio receive the service and the quality of products they expect and deserve. We hope to complete this successful transition as soon as possible."

Where will Yuengling go? To the blue-silver network? Or will neighboring A-B distributors move into the branch's territory with the brand? That would be something to write home about. Modelo is also left in the lurch.

This nightmare situation is certain to alter where suppliers choose to hang their hats, at least where branches are legal. A-B seems to be a net buyer, as we've heard they've been knocking on doors and kicking tires across the country.

Until tomorrow, Harry

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