Hensley & Co.

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Hensley & Co.
Type Private
Founded 1955
Headquarters Phoenix, Arizona, United States
Key people Cindy Hensley McCain (Chair), Robert Delgado (CEO)
Industry Beverages
Products Beers, lagers, malt beverages, energy drinks
Revenue $340 million
Employees 650 (2007)
Website http://www.hensley.com

Hensley & Co. is an Anheuser-Busch beer wholesaler and distributor headquartered in the West Phoenix area[1] of Phoenix, Arizona. It markets to the Phoenix, Tempe, and Prescott Valley areas.[2] It is the third-largest Anheuser-Busch distributor in the United States[3] and one of the largest privately held companies in Arizona.[2]

The company was founded in 1955 by Arizona businessman Jim Hensley.[3] It originally had 15 workers, sold 73,000 cases of beer a year, and had a 6 percent market share.[2] While it first handled many brands of beer, Hensley accepted an offer later that year[1] to become Anheuser-Busch's exclusive distributor for Maricopa County.[4] Under the names Hensley & Company Distributors and Hensley & Company Wholesale,[5] the company saw decades of steady growth,[5] aided by the Phoenix area becoming one of the fastest-growing regions of the country.[4] By 1980 the business had become quite successful and Jim Hensley was a multi-millionaire.[6]

In 1981, Jim Hensley's new son-in-law John McCain, recently married to daughter Cindy Hensley McCain and retired from the United States Navy, was hired as Vice President of Public Relations.[3] McCain soon left to begin his Congressional career, where he would recuse himself on legislation involving alcohol issues.[7] In the late 1980s, Jim Hensley was active in legislative battles against neo-prohibitionist movements.[7] In 1992, a former Anheuser-Busch lobbyist accused Hensley & Co. of illegal "bundling" of contributions to state legislators.[8] Hensley denied the claim,[3] which was later withdrawn by the lobbyist with no charges filed.[8] In 1993, the company consolidated operations under the name Hensley & Company.[5] Robert Delgado, who had been with the company since 1975,[9] was named president in 1994 and later CEO.[2] The company also added real estate holdings throughout Arizona.[8]

At the time of his death in 2000, Jim Hensley held most of the controlling stock;[5] annual revenues were over $220 million[1] on 20 million cases of beer sold.[5] Cindy Hensley McCain, who had been a vice president,[1] became the controlling stockholder (with about a 37 percent share in the company[8]) and chair of the board.[3][2] There her role takes the form of frequent remote consultations with Delgado on major initiatives such as new products, new plants, or employee welfare, rather than of an active physical presence.[3][10] John McCain's son Andy from his first marriage would later join the firm around 1997 and become its CFO.[3] Between 1982 and 2000, the company contributed $80,000 to John McCain's campaigns;[1] from 2001 to 2006, the company and its employees would contribute an additional $24,000 to such campaigns.[3] Hensley & Co. is a member of the National Beer Wholesalers Association,[11] with company spokesperson Douglas Yonko the association's Arizona director.[11]

By 2007 Hensley employed 650 people, sold about 23 million cases of beer a year to over 5,000 retail accounts producing revenues of $340 million, and had a 60 percent market share in its target area.[9] Beverage industry analysts estimated the company's value at more than $250 million.[11] Its Phoenix distribution plant occupies a number of acres and is marked by a giant Budweiser sign.[7] Via the holding company King Aviation, Hensley owns and operates Cessna Citation Excel aircraft.[12] Hensley engages in various local sports sponsorships, including for Phoenix International Raceway.[11] The beer distribution business and the Phoenix market for it are both very competitive;[11] while some Anheuser-Busch distributors have ended their exclusive arrangements with the beer maker, analysts believe that Hensley has no plans to do so.[11] Hensley also is a major contributor to charity in the Phoenix metropolitan area, donating about $1 million per year to various causes[9] and starting the Hensley Employee Foundation in 2001.[2]

[edit] References

  1. ^ a b c d e John Stanley. "Beer Magnate Jim Hensley Dies", The Arizona Republic, 2000-06-23, p. A1. 
  2. ^ a b c d e f About Hensley. Hensley & Co.. Retrieved on 2008-03-06.
  3. ^ a b c d e f g h Dawn Gilbertson. "McCain, his wealth tied to wife's family beer business", The Arizona Republic, 2007-01-23. Retrieved on 2008-03-06. 
  4. ^ a b Alexander, Paul (2002). Man of the People: The Life of John McCain. John Wiley & Sons. ISBN 0-471-22829-X.  p. 93.
  5. ^ a b c d e Amy Silverman, John Dougherty. "Haunted By Spirits", Phoenix New Times, 2000-02-17. Retrieved on 2008-03-06. 
  6. ^ Dan Nowicki, Bill Muller. "John McCain Report: Arizona, the early years", The Arizona Republic, 2007-03-01. Retrieved on 2007-11-21. 
  7. ^ a b c Michael Kranish. "Alcohol industry ties may test McCain", The Boston Globe, 2008-03-09. Retrieved on 2008-03-26. 
  8. ^ a b c d Douglas Frantz. "The Arizona Ties: A Beer Baron and a Powerful Publisher Put McCain on a Political Path", The New York Times, 2000-02-21. Retrieved on 2006-11-29. 
  9. ^ a b c Cathryn Creno. "CEO leads company in tradition of giving back", The Arizona Republic, 2007-12-30. Retrieved on 2008-03-06. 
  10. ^ Tom Blair. "Cindy McCain", San Diego Magazine, August 2007. Retrieved on 2008-03-08. 
  11. ^ a b c d e f Sharon Theimer. "Beer heiress could be next first lady", Associated Press for MSNBC.com, 2008-04-03. Retrieved on 2008-04-29. 
  12. ^ Barry Meier, Margot Williams. "McCain Frequently Used Wife’s Jet for Little Cost", The New York Times, 2008-04-27. Retrieved on 2008-05-08.