Shanken News Daily reported on Monday that RNDC is leaving the Sunshine State after losses of several key suppliers. The supplier has lost major brands like Tito’s Vodka, Gallo’s High Noon, and the Brown-Forman portfolio.
“We’ve made the difficult business decision to withdraw from California, which affects many of the roles in the state,” said RNDC CEO Bob Hendrickson in a 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.”
VinePair reports that RNDC is the country’s second-largest distributor next to Southern Glazer’s Wine and Spirits. Yet it appears after the company’s major losses with Tito’s and Brown-Forman, that may no longer be the case. RNDC decided to bid California adieu less than a week after Brown-Forman dropped it from several markets,
It is looking very likely that there will be repercussions for California employees, according to The Spirits Business. On Reddit’s wine forum, people in the industry shared their thoughts.
“Always sad to see people lose their jobs,” an individual wrote on the forum. “Really amazing how mismanaged it’s been in California since the acquisition of Young’s Market. They were handed a great situation and totally blew it. This is going to have massive implications for distribution in California.”
Another individual shared that the largest company, Southern Glazer’s Wine and Spirits, was probably “licking their chops.”
The situation with Southern Glazers Wine and Spirits is already precarious. The major liquor conglomerate faces multiple lawsuits, including a suit from the Federal Trade Commission (FTC) over allegations of illegal pricing favoring big box retailers. The company admittedly controls a huge—and some say too huge—portion of the alcohol business. The Nation reported that the lawsuit implemented an “anti-monopoly” law to help restore a bit of healthy competition to the market.
As for how RNDC’s exit will affect California’s liquor market in the coming months, the outlook remains a bit hazy. Several brokers for independent brands expressed excitement about a potential shakeup.
“I work for a small book, I’m going to grind and steal all these placements!” an individual commented.
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