We have discussed mergers among alcohol distributors in recent months and how the consolidation has not only taken off in recent years but also how the consolidation is impacting the market. Today we take a look at a different aspect of the consolidation trend and some of the challenges that it presents.
The uptick in mergers has been closely followed by a new and concerning trend: lawsuits. As many major markets are seeing the number of companies servicing their area being reduced to a few players their competitors and customers have begun to push back, and in some cases that means by filing lawsuits. The major distributors have seen a sharp rise in the number of lawsuits being filed throughout the country and at this juncture the trend looks to be on a steady rise as companies both small and large jockey for dominance in key states.
Source: winesandvines.com, July 2017