SWS and Glazers Call Off Joint Venture: WSD Reports
According to Wine and Spirits Daily, the possibility of a joint venture between Southern Wine & Spirits and Glazer’s Distributors has been called off.
The daily newsletter and blog run by Editor Meagan Haverkorn, posted on September 21:
WSD can confirm that discussions concerning a strategic collaboration between Southern Wine & Spirits (SWS) and Glazer’s Distributors have been called off. Recall that the official name of the j-v was to be Southern/Glazer’s Distributors of America. The only reason given was that it was in both company’s long terms best interests to end discussions “driven by the sheer complexity of the transaction.”
“Following more than a year of wide-ranging planning efforts with Southern Wine & Spirits, we have made the decision that it is in our company’s long-term best interests to end these meetings and discussions. Since August 2008, we have explored numerous options and concepts about how best to forge an association with Southern to generate enhanced value for both companies. However, our decision today has been driven by the sheer complexity of the transaction,” said Glazer’s chairman and ceo Bennett Glazer.
Today’s decision was a very difficult one. We continue to hold the Glazer’s Family—and all that their company has accomplished over the last 100 years—in high regard,” said SWS chairman and chief Harvey Chaplin.
When they announced plans to form a j-v a little over a year ago (August 12, 2008), they likely didn’t anticipate such hard times looming ahead. Once the recession hit, consumers started trading down in wine and spirits and drinking more at home, which led distributors and retailers to dramatically scale back inventory. It’s also been very hard to secure credit in the current environment and fund these types of deals. There are other supplier and wholesaler deals waiting to be finalized, which leads us to wonder if they could fall by the wayside as well.
Click here for more information the Sept. 21 entry on Wine & Spirits Daily
Click here for more information on Southern Wine and Spirits
Click here for more information about Glazer’s Distributors
