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Monday 17 December 2012

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Independent breweries are still a niche category in the marketplace, but interest in them continues to grow.


Reyes Beverage Group, a division of global food and beer distributor Reyes Holdings of Rosemont, said Sunday it has reached an agreement to purchase Windy City Distribution, a well-regarded distributor of craft beers.


Brothers Jim and Jason Ebel founded Windy City in 1999. The firm operates as a distributor across eight northern Illinois counties for more than 40 craft breweries, such as Tyranena, Lagunitas and Jolly Pumpkin Artisan Ales. The Ebels also are the brewers behind Warrenville-based Two Brothers beer.





The deal, which is expected to close by the end of the year, is yet another sign of the coming-of-age of the craft beer scene, which is now much more part of the mainstream beer industry. In 2012, 442 craft breweries opened, according to the Beer Institute. The Brewers Association, a trade association, said sales of craft brews increased 14 percent in the first half of 2012 and volume jumped 12 percent.


While the beer industry overall has shown limited growth, the explosive interest in craft beer is enticing giants such as Anheuser-Busch, the maker of Budweiser, and MillerCoors, both of which have struggled to enter the craft market on their own. Since acquiring Chicago's Goose Island in 2011, Anheuser-Busch has aggressively expanded that well-known label. Earlier this year, it revealed plans to increase Goose Island's distribution to all 50 states, making it one of the few craft brands with a true national footprint.


Reyes' Chicago Beverage Systems and Windy City will not integrate their operations. Windy City's president, Bob Collins, and his management team will join Reyes. Chicago Beverage Systems distributes Miller, Coors and Heineken brands, among others.


"Windy City Distributing will be a new entity in our network focused solely on the craft beer market," said Ray Guerin, chief operating officer of Reyes Beverage Group. "I look forward to working with Windy City to learn more about servicing the craft beer industry while providing Reyes Beverage Group's expertise to help Windy City expand."


Terms of the transaction were not disclosed. Both companies are privately held.


mmharris@tribune.com


Twitter @chiconfidential





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