Hillman bought by Faust and Houston Dist - Hillman International Brands Ltd., Faust Distributing Co., Houston Distribution Co - Brief Article

Modern Brewery Age, Feb 4, 2002

Down in Texas, Faust Distributing Co. and Houston Distributing Co. have joined forces to purchase the bulk of another longtime Houston beer wholesaler--Hillman International Brands Ltd.

According to the Houston Business Journal, the new deal will give the two acquiring companies distribution operations for the majority of the 4 million cases of beer Hillman sells annually to Houston retailers. The acquisition won't add many new brands to product lines now handled by Faust and Houston Distributing, but it will increase their sales volumes significantly.

The Business Journals reports that terms of the agreement call for Faust to distribute 600,000 cases to 900 former Hillman accounts in northeast Harris County. Houston Distributing will dispense about 2.3 million cases to nearly 4,000 former Hillman accounts in western and central Harris County, including downtown Houston. The acquisition prices were not disclosed. The deal also includes the acquisition of the Modelo line from Hillman by Silver Eagle Distributors and Wismer Dist. Houston-based Silver Eagle is the local A-B house.

"Expanding Modelo within our Silver Eagle territory will notably increase our participation in the rapidly growing Mexican beer segment," Silver Eagle President John Nau told the Houston Business Journal.

The Hillman Co.--parent of Hillman International Brands Ltd.-- was established in 1960. The firm was once the highest volume distributor for Coors Brewing Co. in its market area, the highest volume distributor for Corona and Shiner Bock in Texas, and the highest volume distributor of Old English in the nation.

"This agreement is mutually beneficial to all parties involved," Hillman said in a written statement. "The buyers will realize the continued growth of the acquired brands ..."

About 250 Hillman employees will be laid off due to the sale of the company, the Business Journal reported. However, Faust and Houston Distributing intend to re-hire about 42 of those workers.

In March 2000, Faust, Houston Distributing and Silver Eagle acquired the assets of Houston-based Aspromonte Coors Distributing Co. "After a period of time, you have to look at what the marketplace is doing. Right now it's consolidation," Bob Aspromonte, president of Asrpromonte Coors and former major league baseball player, said at the time.

Don Faust Jr., vice president of sales and marketing for Faust, told the Business Journal that his firm continues to look for growth opportunities. "It's looking for more efficient ways to service your marketplace," he says. "The most efficient way for us to grow our business is to invest in other brands and offer more products to our customers."