CHICAGO, June 9, 2025 — The nation’s second-largest wine and spirits distributor is pulling out of California, citing the high costs and frustrations of supplying the nation’s largest food-away-from-home market.
Republic National Distributing Co. (RNDC) confirmed last week that it will cease all operations within the state by early September.
“This decision is driven by rising operational costs, industry headwinds, and supplier changes that made the market unsustainable,” CEO Bob Hendrickson said in a media statement.
Outside observers speculated that the latter reason may be the most influential. They note that RNDC recently lost its deal to distribute the products of Brown-Foreman, the distiller of such bar staples as Jack Daniels whiskey.
Hendrickson acknowledged the loss of that business, but stressed the spirits giant was switching distributors as “a part of a broader strategic shift,” without divulging the particulars.
Liquor-industry media noted that Brown-Foreman is the most recent of several dozen alcohol suppliers that have shifted distribution to a major RNDC rival, Reyes Beverage Group.
Hendrickson stressed that Brown-Foreman's decision was not based on RNDC’s performance. Similarly, he emphasized that the company’s decision to withdraw from California had nothing to do with the performance of the distributor’s staff there.
His statement indicates that RNDC will “use this moment to sharpen our focus and reinvest in markets where we’re best positioned to grow.”
He cited Texas and Kentucky as areas that meet those criteria.
RNDC’s decision comes as at least one major broadline foodservice distributor is planning to raise its presence in California. Meeting with investors last week, Performance Food Group (PFG) executives aired plans to line up more customers in the whole Western half of the U.S., including the Golden State.
As Managing Editor for IFMA The Food Away from Home Association, Romeo is responsible for generating the group's news and feature content. He brings more than 40 years of experience in covering restaurants to the position.
Cover image courtesy: Closed Loop Project