USA: Union Beverage Company sells distribution rights for Goose Island and Grolsch for US$9.1 Million

Union Beverage Company, which is owned by NWS-Illinois, LLC, and operated and managed by Glazer's Distributors of Illinois, Inc., announced June that it has finalized the sale of its Illinois distribution rights for Goose Island Beer and Grolsch Beer to the Anheuser- Busch distribution network for $9.1 million, Glazer’s released June 15.

John Wittig, President of Union Beverage Company, said, "Union Beverage Company was successful in building Goose Island Beer into one of the largest selling craft beers in the state of Illinois. We were also responsible for building Grolsch into a significant brand in the imported beer category. While we are disappointed to be giving up the distribution rights for these brands, Union Beverage could not pass up the opportunity to sell the distribution rights for an unprecedented amount that represents a tremendous valuation for the brands."

Wittig stated, "Despite our selling of the distribution rights for these brands, Union Beverage remains steadfastly committed to being one of the leading malt beverage distributors in the state of Illinois. We intend to keep our sales force structure intact in order to effectively market and distribute the 1.3 million cases of malt beverages remaining in our portfolio and provide the opportunity for future expansion in the malt beverage industry. This is consistent with Glazer's position as the 12th largest malt beverage distributor in America."

Glazer's Chairman and Chief Executive Officer Bennett Glazer today also announced that, "Glazer's has executed our option to purchase 80% of Union Beverage Company from NWS-Illinois, LLC, and we expect this transaction to close before the end of November. This transaction is a clear indication of our company's long-term commitment to the Illinois market, and of our intentions to continue our growth trajectory in this key footprint state."

Glazer's, currently operating in 12 states, is one of the nation's largest wholesale distributors of wine, spirits, and malt beverage products. The third-generation family business was founded in Dallas in 1933. For more information, please visit our Web site at http://www.glazers.com.

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