Testimony of Largest Independent Distributor – Danny Romano

Testimony of Largest Independent Distributor – Danny Romano

Largest Independent Distributor Testifies Under Oath; No Cross-Examination by Receiver or Lender

(Court Hearing Transcript – February 9, 2026)

The CEO of Uncle Nearest’s largest independent distributor testified under oath regarding the growth trajectory, market positioning, and commercial performance of Uncle Nearest within his distribution network.

Neither the Receiver nor counsel for the lender conducted cross-examination of his testimony.

1. Largest Independent Distributor Testifies to Deep Industry Roots and Scaled Growth

   The CEO of Romano Beverage testified that his family operated a liquor distributorship dating back to 1913, which was sold in 2002, after which he was subject to a non-compete until 2017.

   After re-entering the market in 2018, he rebuilt a new distribution company from the ground up, growing it to approximately $70 million in annual revenue. He identified Uncle Nearest as the first major brand in that new platform and a central driver of its early growth.

2. Distributor Describes Symbiotic Relationship Driving Brand Expansion

   The testimony emphasized that supplier and distributor operate in a highly integrated, collaborative model, sharing both marketing strategy and financial investment to secure retail placement and grow sales.

   This relationship was described as symbiotic, with coordinated efforts in promotions, retailer engagement, and brand-building, indicating that sustained growth depends on active participation from both the company and its distribution partners.

3. Brand Performance Was Strong and Growing Prior to Receivership

   The distributor testified that sales of Uncle Nearest were increasing month over month leading into mid-2025, with strong retailer demand and consistent promotional support from company leadership.

   Retailers were described as receptive to the brand, supported by in-market events and coordinated marketing efforts that reinforced both visibility and demand.

4. Testimony Attributes Brand Value Directly to Founder Leadership

   The distributor stated that the brand is closely identified with its founder, describing her as “100 percent” of the brand in terms of energy, positioning, and market traction.

   He further testified that early access to key retail accounts and national placements was driven by her direct involvement and influence with buyers, which served as a primary catalyst for distribution expansion.

5. Receivership Introduced Market Uncertainty and Competitive Pressure

   Following the receivership, the distributor testified that competitors began raising concerns with retailers about the company’s stability, forcing distributors to actively counter negative messaging in the market.

   He described spending significant time addressing uncertainty among buyers, particularly where competitors suggested potential disruption, sale, or discontinuity of the brand.

6. Sales Growth Continued Despite External Noise, but Risk Emerged in National Chains

   The distributor testified that overall sales in his market continued to grow, supported by ongoing marketing collaboration and company support.

   However, he identified emerging risk with national retail chains, where decisions influenced by industry data and perceived uncertainty could result in lost distribution across large account groups.

7. Retail Decision-Making Influenced by Data and Perceived Stability

   The testimony highlighted that large national chains rely heavily on syndicated data and broader market signals when making placement decisions.

   In conditions of uncertainty, buyers may act conservatively, which can affect shelf space and continuity even when underlying sales performance remains strong.

8. Testimony Indicates Brand Equity Tied to Founder-Led Market Engagement

   The distributor described widespread consumer and retailer enthusiasm tied to the founder’s presence, including strong turnout at events and high levels of engagement.

   He testified that this level of engagement reflects a broader pattern across distributors and retailers.

9. Distributor States Full Brand Value Cannot Be Realized Without Founder

   When asked directly, the distributor testified that the true value of the brand could not be achieved without the founder’s continued involvement.

   This testimony frames founder participation as a central component of enterprise value, particularly in driving distribution access, retailer confidence, and consumer demand.

Read the full filing → Testimony of Largest Independent Distributor