Sub SortSpace()
Dim tRange As Range
Dim cCell As Range
Dim ws As Worksheet
Set ws = ThisWorkbook.Sheets("Sheet1")
Set tRange = ws.Range("B2").CurrentRegion
Set cCell = ws.Range("B2")
'Sort based on Column B in ascending order
tRange.Sort Key1:=cCell, Order1:=xlAscending, Header:=xlYes
'Starting from B4 check if first letter of cell value = the one above
'If yes move on, if not insert row and stop when you reach empty cell
i = 4
Do Until Cells(i, 2) = ""
If Left(Cells(i, 2), 1) = Left(Cells(i - 1, 2), 1) Then
i = i + 1
Else
Cells(i, 2).Select
Selection.EntireRow.Insert
i = i + 2
End If
Loop
End Sub