Second-Largest Alcohol Distributor in US Pulls Out of California, Potentially Displacing Hundreds of Jobs

(Photo: RNDC)

Earlier this week, Republic National Distributing Company announced that it will be shuttering its operations in California. The move represents a major shakeup for one of America’s largest alcohol distributors, which some have speculated is suffering losses from major brand departures and industry headwinds.

In a statement shared by interim CEO Bob Henrickson, the company confirmed it will be pulling out of The Golden State effective September 2. RNDC employs an estimated 14,000 people across the U.S., with an annual revenue regularly reaching over $10 billion. California — the top state by overall alcohol consumption — was likely one of its largest markets.

Henrickson did not disclose how many jobs would be impacted by the exit.

“We’ve made the difficult business decision to withdraw from California, which affects many of the roles in the state,” Henrickson said in a public statement. “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.”

In February, Jack Daniel’s-owner Brown-Forman announced that it would be replacing RNDC as its distributor in California, impacting myriad brands including Woodford Reserve, Old Forester and Herradura Tequila. Brown-Forman doubled down on the decision at the end of last month, announcing a nationwide shift that would drop RNDC from 23 markets to 12.

Tito’s Handmade Vodka made a similar decision in January when it switched California distribution to competitor Reyes Beverage Group.

In conversation with Vinepair writer Dave Infante, Teamsters’ bargainers Jeff Padellaro and Steve Beck shed light on the lead-up to RNDC’s exit. According to Padellaro and Beck, the distributor was scheduled to renegotiate its collective bargaining deal with 500 Teamsters sales staffers before May 31st. Those negotiations reportedly did not happen, leaving joint talks entirely in the hands of Southern Glazer’s Wine & Spirits, RNDC’s largest competitor.

“We’ll be speaking with the company and engaging with our membership on the best possible solution to RNDC’s proposal over the course of the next few weeks,” Teamsters spokesperson Matt McQuaid said in a statement. “The Teamsters can and will do everything in our power to get our members what they deserve.”