Major beverage-alcohol distributor Republic National Distributing Company (RNDC) is to quit California in September.
RNDC has seen the end of major contracts in the Golden State in recent months, including Brown-Forman shifting products to rival distributor Reyes Beverage Group.
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“We’ve made the difficult business decision to withdraw from California which affects many of the roles in the state,” a spokesperson for RNDC.
The distributor’s departure will take effect on 2 September. The spokesperson refused to be drawn on the number of jobs set to be affected.
“We are complying with all regulatory obligations and are committed to handling every transition thoughtfully and smoothly and ensuring everyone is treated fairly and respectfully. We are grateful for the support of these employees and will do our best to support them during this time,” the spokesperson said, refusing to be drawn on the reasons for the decision.
Earlier this year, Tito’s Handmade Vodka also moved its California distribution from RNDC to Reyes Beverage Group.
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By GlobalDataAmong the companies RNDC works for in California is Treasury Wine Estates, the Australia-based wine group.
In a stock-exchange filing in Australia today, the Penfolds owner provided a short statement on RNDC’s decision.
Treasury Wine Estates said RNDC’s move would not affect its financial results in its current financial year, which ends in June.
However, the group added: “TWE has begun evaluating alternative distribution arrangements for its portfolio in California to determine an appropriate path forward.
“TWE’s relationship with RNDC spans 25 US states, including California. The closure of RNDC’s California operations is not expected to impact the remainder of its business, and RNDC has reiterated its commitment to investing behind and driving TWE’s portfolio in the remaining 24 states.”
Brown-Forman announced its new contract in California with Reyes Beverage Group in February.
Last week, the Jack Daniel’s maker set out a broader set of changes to its US distribution network that reportedly means RNDC will handle the spirits giant’s products in 12 markets in the country, down from 23.
