One other partnership with Republic Nationwide Distributing Co. (RNDC) has come to an finish.
This week, information broke that Anheuser-Busch InBev has terminated its partnership with RNDC in California and “a number of different markets,” efficient instantly. Rumored for weeks to be the case, the information was formally confirmed in an e mail despatched to the RNDC California workforce from RNDC West Area president Bryan Boeck, which was later posted to the r/RNDC subreddit. Within the e mail, Boeck famous that AB-InBev is “dedicated to making sure a clean transition.”
In line with a Thursday morning report from Beer Enterprise Each day (BBD), AB-InBev has transitioned all spirits model rights from RNDC to Southern Glazer’s in California, Hawaii, and “some” management states. These management states at the moment embrace Alabama, Idaho, Maine, Michigan, Mississippi, Montana, New Hampshire, North Carolina, Ohio, Oregon, Vermont, Virginia, and Wyoming.
The transfer particularly pertains to AB-InBev’s spirits-based model distribution rights, and won’t affect the distribution of any of the conglomerate’s beer or malt-based exhausting seltzer manufacturers. However, it’s one other large loss for RNDC, as AB-InBev’s Cutwater serves because the nation’s second-largest spirits-based canned cocktail model household — with California, the model’s residence market, being an important. As BBD stories, AB-InBev revealed final 12 months that in Cutwater’s prime 10 markets, the model’s share ranges from 50 to 30 p.c, with the Golden State main.
“We’re assured that the choice to transition our spirits-based model distribution rights to Southern Glazer’s in California, Hawaii, and a few management states will strengthen our spirits-based manufacturers in key markets and assist speed up our general business momentum,” an nameless AB-InBev spokesperson instructed BBD.
The information is the most recent in a collection of bulletins relating to main producers shifting their distribution away from RNDC to work with different distribution corporations — specifically the Reyes Beverage Group. In January 2023, RNDC’s long-term accomplice Sazerac introduced that it could be pivoting distribution away from RNDC and in the direction of the Chicago-based group, kickstarting the pattern at the moment enjoying out.
In January of this 12 months, Tito’s Vodka introduced that it could be shifting distribution from RNDC to the Reyes Group as properly, and on February 24, Brown-Forman acknowledged that it could be doing the identical. Two days later, RNDC introduced that CEO Nick Mehall could be leaving the corporate, with Bob Hendrickson, COO and govt vp, stepping in as interim CEO. However the departures didn’t finish there.
On April 4, Gallo revealed that it could be shifting distribution of Excessive Midday Solar Sips in California from RNDC to the Reyes Beverage Group efficient July 1. Virtually 3 times the scale of Cutwater — Excessive Midday’s closest competitor — the vodka- and tequila-based seltzer model is general prime spirits model by quantity within the U.S.
On the time of the announcement, a consultant from Gallo famous that the pivot was in response to market evaluation.
“Gallo is evolving its strategy with Excessive Midday in California to make sure continued success, competitiveness, and elevated market protection for the model,” the consultant instructed Brewbound. “[…] We consider this new route-to-market with Reyes Beverage Group in California will additional assist the expansion potential and ongoing success of the model. On account of this modification, the RNDC California gross sales workforce will be capable to dedicate its give attention to Gallo’s various and sturdy wine and spirits portfolio.”
AB-InBev’s latest distribution resolution marks RNDC’s fourth main account loss in 2025. It stays to be seen how the distribution firm will reply.
VP Professional Take
“Man, that is getting exhausting to observe. With plenty of RNDC blood already chumming the water due to all of the main departures over the previous couple years (and particularly the previous few months), I’d been listening to chatter on Cutwater’s potential soar for some time.
As I reported late final month, the truth that ABI can’t transfer its canned cocktail model to its wholly owned distributorships in Southern California wouldn’t have precluded the agency from tapping impartial ‘purple community’ homes to take over the quantity. For anyone like Peter Heimark, the third-generation ABI distributor outta Indio who in 2023 put collectively a reasonably revolutionary coalition of in-state indie wholesalers referred to as California Beverage Options so as to present a aggressive middle-tier reply for when this particular query arose on the mothership, it’s a uncooked deal that Cutwater would wind up in Southern Glazer’s warehouses as a substitute.
And, positive, SGWS gives the model a multi-state footprint that even Reyes Beverage Group can’t match (for now). However a few of my sources are scratching their heads anyway. In spite of everything, breadth of distribution is usually much less necessary than depth of distribution, and beer wholesalers are typically rather more skilled at servicing comfort shops than their counterparts in wine/liquor. Then once more, with a lot of the strikes coming in management states the place liquor-based canned cocktails are sometimes restricted to placements extra akin to conventional liquor, which will have been a tradeoff ABI was keen to make in trade for a extra favorable scaled cope with a accomplice keen to pay up no matter it took to make RNDC complete on its contract rights.
Talking of which — any guesses on that sum-total? I’m listening to low-to-mid eight figures for Cali alone… but when you understand extra, I’d love to listen to from you. Get in contact: [email protected].” —Dave Infante, VinePair columnist and contributing editor
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