Lehigh Valley Beer Store has new offer for its distributors, as takeover looms

From the Allentown Morning Call via the Business Committee of the Commercial Club of the Lehigh Valley:

“The Beer Store’s best offer to the people of the Lehigh Valley came on Wednesday, in the form of a letter from the brewery that is the main suitor to purchase the 150-year-old retail corporation.

“It was a letter outlining what Goodwood Brewing Co. of Northampton considers to be compromises from the province, written just days after the chain conceded that it could no longer guarantee the survival of its distributor.

“At stake is the future of seven outlets currently under the control of the Lehigh Valley’s leading distributor, which Gov. Tom Wolf proposed splitting up in a plan that would keep the Goodwood outlets out of the alehouse wars.

“Earlier this week, a statement from Goodwood expressed concern that it would be losing its franchise to the Keystone Brewing Co. of Amityville, New York, after its agreement to distribute Keystone, alongside previously announced distributors of Anheuser-Busch’s Lehigh Valley Crafteries, expired on June 30.

“The Beer Store operates a network of 87 retail outlets throughout the state, mostly owned by Pennsylvania-based Anheuser-Busch. In a letter Wednesday, CEO David White offered to settle the matter and uphold Goodwood’s agreements if ‘any or all’ of the local distributors are involved in the new distribution plan.

“Goodwood estimates it loses $1 million a year in operation costs, due to the higher rent associated with the state-run outlets, compared to its leased outlets.”

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