America’s Second-Largest Alcohol Distributor to Lay Off Over 1,700 Employees as It Exits California

(Photo: RNDC)

The Republic National Distributing Company has confirmed mass layoffs as it prepares to halt operations in California. The news comes little over a month after the company, by all accounts the second-largest alcohol distributor in America, announced its surprise exit from the nation’s largest spirits market.

According to a series of Worker Adjustment and Retraining Notices filed last week, RNDC will lay off 1,756 employees across California, effective Sept 2. Eliminated positions range from warehouse drivers to business analysts. The WARN Act is a federal law that requires qualifying employers to provide at least 60 days’ notice ahead of a plant closing or mass layoff. RNDC notified its employees with three days left on the deadline.

RNDC’s exit signals a shift in the American liquor landscape as companies grapple with declining sales and trade tensions.

Headquartered in Grand Prairie, Texas, the family-owned distributor is reportedly responsible for over 9,000 jobs across the country. RNDC distributes some of the most recognizable brands on the market, pulling in an annual revenue well over $10 billion year after year. In 2024, it was named one of America’s Top Private Companies by Forbes; a year prior, it was named one of America’s Best Large Employers.

Due to circumstances largely unknown to the public, the West Coast began to slip from the RNDC’s grasp over the past few months. In February, Brown-Forman announced it would be replacing RNDC as its distributor in California, affecting brands like Jack Daniel’s and Herradura Tequila. Tito’s Handmade Vodka made a similar decision when it switched its California distribution network to one of RNDC’s competitors, Reyes Beverage Group.

RNDC interim CEO Bob Hendrickson attributes his company’s exit from California to “rising operational costs, industry head winds and supplier changes.”

“We’ve made the difficult business decision to withdraw from California, which affects many of the roles in the state,” Hendrickson 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.”