Running Man Distributing shuts down, Upstanding Distribution steps up, self-distributing back in
The 2014 launched Portland, Oregon beer and cider wholesaler Running Man Distributing has officially been dissolved, leaving many of the brands under its portfolio with new challenges, as well as opportunities. Picking up some of the pieces is Upstanding Distribution, which recently announced the additions of Ex Novo Brewing, Culmination Brewing, Helvetia Cider, and Xicha Brewing to their roster.
Running Man was started by beer and cider sales pro Rob Merollis, a former Goose Island Brewing and Virtue Cider brand manager who teamed-up with Chicago-based Phil Birnbaum to start a new competitor in the difficult beer distribution business. Their combined 35 years of experience and major connections in the midwest and northwest yielded some big early successes like some of the first ever limited beer drops from the likes of Bells Brewery, Revolution Brewing, and Half Acre. At the same time they were shepherding new brands like Hi-Wheel Fizzy Wines, Mazama Brewing, and Bull Run Cider in those early days. Some of their big partnerships didn’t last long, we used to get Perennial Artisan Ales and Sixpoint Brewery from Running Man before they dropped out of the marketplace. While others jumped ship to Other distributors (Single Hill Brewing to Day One Distro, Level Beer to Maletis.)
The same year that Running Man launched, the similarly small and indie distributor Alebriated Distribution also launched in Portland with a focus on Washington brands. Alebriated shut down in 2023, and sold their assets to Upstanding Distribution, which was formerly known as Shelton Brothers Oregon distribution arm before the Shelton Brothers importer shut down and the ownership structure of the distributor changed. Confused yet? Upstanding Distribution has now also picked up some of the brands formerly with Running Man Distributing, while others will chart their own course.
Upstanding Distribution manager Mike Neely says he had reached out to Running Man’s Phil Birnbaum in early April 2024 to see what was happening with the business. In an effort to broaden the Upstanding Distribution brand selection, Neely says he wanted to be well positioned to add more local producers to their previously heavy import portfolio by getting ahead of any new Running Man developments. The rumors were true, they were shutting down.
“We'll be acquiring some more local producers/suppliers that will give us a bit more of a 'local' offering as you might know we've been lacking those local offering in our catalog being late to the distribution game in the state of Oregon and most local producers already engaged in contracts and relations with our distributors here in the state,” says Neely.
It was no secret in the industry that Running Man was struggling keeping product in stock, they couldn’t carry enough of their brands product in their warehouse and also didn’t have the staff to move it, or stock up. Many breweries were vocally frustrated and critical, and now many of them are left in a lurch, such as Falling Sky Brewing.
“The biggest challenge will be to collect “empty shells” from Running Man’s time servicing the area,” says Falling Sky Brewing owner Steve Such. “I don’t have a listing on where/who they all sold too. (Lame) So, please call me if anyone has one. I know empty shells are annoying when we don’t pick them up and I hate that it will be a reflection on Falling Sky if they unknowingly sit.”
Upstanding Distribution did not acquire Running Man, and thus the brands are all now free to pursue other opportunities whether they be signing with a different distributor. Assembly Brewing, Mazama Brewing, and Stickmen Brewing’s paths are still unknown at this point. Some had already left Running Man before they shut down, including Second Profession Brewing and Binary Brewing. Others will be trying their hand at self-distributing, such as Stickmen Brewing, Mazama Brewing, Public Coast Brewing, and the previously mentioned Falling Sky Brewing.
“Our goal is to keep our relationships moving forward with some key accounts in the area - New Seasons, Market of Choice, John’s Marketplace, Belmont Station, and select tap houses and restaurants/bars,” says Falling Sky owner Steve Such. “Because it will just be me doing the sales calls and delivery… I am keeping a very tight route to be able to maintain good service. This means that I am limiting where I will visit and deliver too. We’ve won 5 Gold Medals this year, so I hope someone new might find us attractive to work with. But, I am not going to expect or rely on that happening. Instead the mantra for now is: If it’s meant to be… it’s up to me! Time to go shake hands and kiss those babies!”
Ex Novo Brewing has already announced they have joined Upstanding Distribution. The Portland founded brewery famously shuttered last year after moving operations to New Mexico where they are currently working on their second location. But Ex Novo never left the Oregon market, and are still brewing many of their beers locally at the new Lazy Days Brewing that took over their locations in their hometown. They even recently hired an Oregon sales rep, and plans to push forward with availability through Upstanding.
“We will continue to receive fresh Ex Novo products directly from them at their New Mexico brewery location as well as what core brands continue to be produced at Ex Novo's former brewhouse by the friendly folks at Lazy Day's Brewing,” says Neely. Upstanding is currently in a big growth spurt with a new warehouse in Bend, Oregon to service central Oregon.
Culmination Brewing is one of the Running Man brands that is jumping to Upstanding, and has their own history of distribution arrangements that did not work out. First they started with General Distributors, which was gobbled up by the much larger Columbia Distributing, finding themselves in Columbia’s book did not work out for either of them. After a SMBX funding round to purchase a new tank and their own canning line, Culmination Brewing was able to negotiate their way out of the Columbia arrangement (likely with an exchange of funds) and sign with Running Man.
A supplier and wholesaler relationship is like a marriage, sometimes easy to get into without fully understanding the consequences. When everything is simpatico it can be a match made in heaven, when it goes bad it can go really bad and is not always easy to extricate yourself. Like many marriages where one side has more power or wealth, you may want to sign a prenup ahead of time.