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News
RNDC-Young’s joint venture approved by FTC
Wine and spirits distribution firms Republic National Distributing Company (RNDC) and Young’s Market Company have been given the go ahead from the US Federal Trade Commission (FTC) to move forward with their planned joint venture.
RNDC and Young’s will partner in all 33 US markets where Young’s is already present
The joint venture, which was announced last month, will see the two firms partner in 32 US states and the District of Columbia.
The combined company will be led by a board of directors made up of executives from both companies.
RNDC will be responsible for leading daily sales and operations in all 33 markets, while Young’s will operate in coordination with RNDC’s business nationally.
“We are very excited about the future of our company,” said Tom Cole, CEO of RNDC. “With our expanded footprint, our ability to serve suppliers and customers expands, too.
“This partnership, plus our investment in technology, will help meet and surpass the expectations of our suppliers and customers in every way.”
Chris Underwood, CEO of Young’s Market Company, added: “This is a new and exciting chapter for our company. Combining forces with a proven and well-respected partner like RNDC allows Young’s to improve upon the best-in-class service we are known for in the industry.
“Our expanded partnership positions us to effectively compete in the growing marketplace in the years to come.”
The deal is predicted to close in the third quarter of this year.
RNDC is the second largest drinks distribution firm in the US and employs more than 9,500 people nationwide. Founded in 1888, Young’s Market Company employs more than 3,000 people and operates in 10 states.
In April this year, RNDC and Breakthru Beverage Group terminated their proposed merger following a prolonged review by the FTC.
According to Ian R Conner, deputy director of the FTC’s Bureau of Competition, the agency was concerned over “likely anticompetitive harm if the transaction were completed”.
The Spirits Business recently analysed what the collapse of the merger means for the drinks industry.