Major alcohol distributor to leave California in September

"On Sept. 2, the Republic National Distributing Co. (RNDC) will complete its departure from the largest liquor market in the United States: California. The withdrawal of one of California's largest alcohol distributors is bound to affect consumers negatively. The initial impact is already being felt by liquor retailers, liquor producers, bars and restaurants. At least half of our book came from RNDC, said Alex Tarantino, the general manager and liquor buyer for the Buckeye Roadhouse in Mill Valley."

"The Louisiana-based company completed its acquisition of the century-plus-year-old California company Young's Market Co. in November 2022, making it one of the largest liquor distributors in California, with brands like Hendrick's Gin, Tito's Handmade Vodka, Milagro Tequila and Glenfiddich Scotch Whisky. Then, in a puzzling turnaround, less than 22 months later, RNDC decided to abandon the California market altogether, citing rising operational costs, industry headwinds and supplier changes, according to The Spirits Business magazine."

RNDC will exit California on Sept. 2, removing a major distributor from the nation's largest liquor market. RNDC acquired Young's Market Co. in November 2022, gaining major brands and substantial market share, but decided to withdraw less than 22 months later, citing rising operational costs, industry headwinds and supplier changes. The exit immediately disrupted retailers, producers, bars and restaurants, forcing buyers to locate new brand representatives and distributors for hundreds of products. The three-tier system prevents producers from selling directly to the public in California, increasing reliance on distributors to supply retailers and hospitality businesses.

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