Spirits • Wine
The housing sector is in the dumps. GM? Do they even exist anymore? Factories are turning off the power and schools are closing their doors, and banks and companies are standing in line to be bailed out by the government. The looming recession our country has been facing couldn’t possibly cripple the beverage industry…could it? The effects have already been felt as Southern Wine & Spirits of America Inc. is asking for $2 billion to refinance existing debt. The largest wine and spirits distributor in the United States, Southern Wine is seeking the help of Bank of America to bail them out.
According to the Associated Press, “Bank of America Corp. is arranging a $1 billion revolving credit line and a $1 billion term loan… both loans will mature in five years.“
With their distribution chain reaching from one coast to the other, a distribution giant like Southern Wine going under could greatly impact the labels that we see on the shelves on a daily basis. It will be interesting to see what happens and hopefully this isn’t just the tip of the iceberg.