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National Wine inks merger deal with Dallas wholesaler

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Indianapolis-based National Wine & Spirits Inc. is joining forces with an out-of-state wholesale beverage distributor, presumably to better compete against a rival that won a bitter battle to sell liquor in Indiana.

National announced Wednesday morning that it will become Republic National Distributing Co. of Indiana after Dallas-based Republic National completes the purchase of “certain assets” of National.

Terms were not announced, but both companies are portraying the deal as an equal partnership.

The acquisition follows a November ruling from the Indiana Alcohol and Tobacco Commission to drop its opposition to Miami-based Southern Wine & Spirits of America Inc.’s request to distribute alcohol in Indiana.  

Even though National controls nearly 60 percent of the Indiana market, it is one-tenth the size of Southern. Southern holds distribution agreements with alcohol manufacturers in 29 states, an advantage that National fears it will leverage to steal away its Indiana contracts.

National should benefit from Republic’s size. It is the second-biggest distributor of premium wine and spirits in the country, with operations in 18 states and Washington, D.C., according to the company’s Web site.  
 
National distributes wine and spirits in Indiana and Michigan, and employs more than 1,000 people in the two states. Republic will have about 7,000 employees following the deal with National.

Phone calls to National seeking comment on the deal were not immediately returned. But, in a written release, National Owner and Chairman Jim LaCrosse said Republic emerged, after a careful review of options, as the clear choice with whom to partner.

“[Republic] has a reputation for its integrity and its commitment to excellence in sales and customer service,” LaCrosse said. “Our combined organizations will ensure our new company will continue to grow.”

LaCrosse has called Southern “the 800-pound gorilla,” warning the commission that Southern would drive his company out of business in Indiana.

The commission’s decision to drop its opposition to Southern was surprising. Its unanimous ruling in favor of Southern reversed two previous rulings—also made unanimously—that denied Southern’s application for permits.

In 2008, the commission turned Southern away because the owners of the company dwell outside Indiana. That residency restriction, however, was effectively nixed in a Sept. 14 opinion by the Indiana Attorney General’s Office.

The next day, the commission denied Southern again, this time citing anticompetitive behavior in other states.

As part of its agreement with Republic, National announced Chief Operating Officer John Baker will remain in that position under the new structure.

Baker said in the announcement that the transaction will close as soon as the licensing process is completed.

The two companies had been in discussions for several months, Republic President Tom Cole said.

“The addition of Indiana to our organization continues to underscore our commitment to build [Republic] into the best network of wine and spirits wholesalers in America,” Cole said in the release.



 

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  1. In reality, Lilly is maintaining profit by cutting costs such as Indiana/US citizen IT workers by a significant amount with their Tata Indian consulting connection, increasing Indian H1B's at Lillys Indiana locations significantly and offshoring to India high paying Indiana jobs to cut costs and increase profit at the expense of U.S. workers.

  2. I think perhaps there is legal precedence here in that the laws were intended for family farms, not pig processing plants on a huge scale. There has to be a way to squash this judges judgment and overrule her dumb judgement. Perhaps she should be required to live in one of those neighbors houses for a month next to the farm to see how she likes it. She is there to protect the people, not the corporations.

  3. http://www.omafra.gov.on.ca/english/engineer/facts/03-111.htm Corporate farms are not farms, they are indeed factories on a huge scale. The amount of waste and unhealthy smells are environmentally unsafe. If they want to do this, they should be forced to buy a boundary around their farm at a premium price to the homeowners and landowners that have to eat, sleep, and live in a cesspool of pig smells. Imagine living in a house that smells like a restroom all the time. Does the state really believe they should take the side of these corporate farms and not protect Indiana citizens. Perhaps justifiable they should force all the management of the farms to live on the farm itself and not live probably far away from there. Would be interesting to investigate the housing locations of those working at and managing the corporate farms.

  4. downtown in the same area as O'malia's. 350 E New York. Not sure that another one could survive. I agree a Target is needed d'town. Downtown Philly even had a 3 story Kmart for its downtown residents.

  5. Indy-area residents... most of you have no idea how AMAZING Aurelio's is. South of Chicago was a cool pizza place... but it pales in comparison to the heavenly thin crust Aurelio's pizza. Their deep dish is pretty good too. My waistline is expanding just thinking about this!

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