Beer Distributors Are On the Rise

When you think of a homerun business to buy, what do you think of? We’d argue that this is the best time in the last 20 years to buy a beer distributor. Why? Beer distributors are an essential business that has serious potential for additional revenue streams and a supportive community of owners in PA to work with.

Do PA Residents Need Beer Distributors?

The short answer is yes! Concerns about the end of beer distributors flew around when convenience stores and gas stations were permitted to sell malt beverages in Pennsylvania. But Beer distributors didn’t shut down. In fact, they thrive more every year. Beer distributors can offer better pricing than your average convenience store or gas station. Plus the recent ability to sell 12 packs, growlers, and alcoholic slushies has enhanced beer distributor sales.

“The fear that consumers would move to buy their beer exclusively at gas stations and grocery stores was unfounded. People are still buying from beer distributors even as beer outlets become more available for gas stations and convenience stores,” said Ron Sofranko, Founder of Sofranko Advisory Group.

Beer Distributor Interest is Increasing

When the Covid19 shutdowns came to PA, beer distributors were listed as essential businesses. Since then, revenue has continued to grow and grow. With fewer options to hang out at a bar or have some drinks at a restaurant, many turned to their neighborhood beer distributors and were reminded how great they were!

“We’ve talked to many beer distributor owners who have seen an increase of 20-40% increase in revenue on average in 2020 versus 2019. It’s the single largest annual increase I’ve seen in about 20 years,” said Sofranko.

Multiple Revenue Streams Available

Beer distributors can offer so much more than just a case of beer. If last summer showed us anything in terms of alcoholic retail trends, it’s been the rise of the alcoholic slushy. Beer Distributors are definitely leading the way in this new trend. But slushies aren’t the only additional revenue stream you can add to a beer distributor. Everything from growlers to cigars and even to-go food are options to make your beer distributor even more profitable.

Read our article 4 Ways You Can Maximize Beer Distributor Profits to learn more about new revenue streams for beer distributors.

Some Beer Distributor Owners are Ready To Sell

Many beer distributor owners have been in the game for a long time and are seeing the current positive trending as the best time to sell. Traditionally beer distributors have been long-term business investments for owners, and in past years they haven’t been so trendy, since many worried that the industry could die out when convenience and grocery stores were allowed to enter the distribution game. As a hospitality brokerage firm that sells beer distributors, we’d have to agree.

“This is the best time in the last 20 years to buy or sell a beer distributor. We’ve seen a dramatic increase in interested buyers for beer distributors of all shapes and sizes, all over the state,” said Sofranko.

The limited amount of beer distributor licenses in Pennsylvania are also helping to keep demand high as interest in beer distributors grow. In 2020, we had offers for beer distributors before we even had the time to make our listings public.

A Supportive Network of Owners

Pennsylvania beer distributors benefit from the support of the Malt Beverage Distributor Association who, according to their websites, “supports and advances the goals and welfare of PA beer distributors and their consumers.”

Just in 2020, the MBDA was responsible for aiding the rise of Beer Distributors. According to Executive Secretary, Stephanie Eckert, here are some of their biggest achievements:

Achievements such as 6 & 12-Pack Sales, Singles, Slushies, Growlers, Fermented Fruit beverages, and a whole list of new products to sell.
Success in appealing to state officials to have beer distributors classified as essential businesses so they could remain open during the COVID-19 pandemic.
Protecting your business and investment to stop the expansion of beer sales in grocery and convenience stores. Most recently, they halted their attempts to greatly expand alcohol sales under the guise of aiding customers during our national crisis!
Weekly e-newsletters and alerts keep members up-to-date on legal, legislative, and regulatory issues.

They also support members with deals on everything from commercial electricity, business insurance, credit/debit card processing, office supplies, website design, electronic scanning machines, online RAMP training, and imprinted marketing materials. Members have saved thousands of dollars a year from taking advantage of the various programs the MDBA supplies.

“We’ve worked with the MBDA for many years, and their advocacy is very beneficial for the industry. We encourage all of our beer distributor buyers to join and participate in their programs and attend their annual convention,” said Sofranko.

Learn more about the MBDA.
Contact us to get on our list and be the first to know about available beer distributors.