RNDC to exit control states in Martignetti deal
Republic National Distributing Company (RNDC) has agreed to sell its operations in all 17 US control states to Martignetti Companies.
This week, RNDC provided an update on a series of transactions across the US as it continues to evaluate its business.
In its latest move, RNDC confirmed it has signed a letter of intent (LOI) with Martignetti for the sale of its control state operations.
The potential deal includes: Alabama, Idaho, Iowa, Maine, Michigan, Mississippi, Montana, New Hampshire, North Carolina, Ohio, Oregon, Pennsylvania, Utah, Vermont, Virginia, West Virginia and Wyoming.
“Martignetti Companies brings deep experience in control state markets and a strong reputation for execution,” said Marc Sachs, president and CEO of RNDC. “This pending agreement reflects a thoughtful process, and I want to recognise the professionalism and commitment of our teams who have built these businesses market by market.”
Martignetti currently operates in six New England states and claims to be the sixth-largest wine and spirits distributor in the US.
“We have built a strong, service-driven model in New England, including three successful control states, and are eager to bring that experience to scale on behalf of supplier and customer partners,” said Carmine and Carl Martignetti, principals of Martignetti Companies.
“We are excited about the opportunity to welcome members of RNDC’s talented team to Martignetti.”
The acquisition is expected to close this summer, subject to regulatory approval.
Spirits sales in US control states dipped by 1.9% in volume and by 3.4% in value in February 2026, compared to the same month last year.
M&A update in other markets
RNDC has also confirmed that it is in “advanced discussions” with a potential buyer for its operations in the Plains states.
In addition, RNDC said it is working with its joint venture partners in New York, Illinois, Kentucky, Indian and Michigan “on the best paths forward”, but didn’t share further details.
The company also provided an update on its deal with Reyes Beverage Group, which last month took on five more additional US states from RNDC, bringing the total to 11.
RNDC said the Reyes deal is on track to close by the end of May 2026 and is subject to regulatory approvals and other customary closing conditions.
Sachs added: “We’re taking these thoughtful, deliberate steps as we continue to evaluate the best path forward for our business.
“Our focus remains on supporting our associates, delivering for our suppliers, and maintaining strong service for our customers. We have a measured approach to each of these opportunities, and are negotiating with a focus on our people, our partners, and the markets we serve.”
RNDC also recently signed a LOI with Columbia Distributing to sell its operations in Oregon, Washington and Alaska.
Last summer, RNDC ceased operations in California, cutting jobs and leaving smaller brands scrambling to find a new distributor.
RNDC was the US’ second-largest wine and spirits distributor, after Southern Glazer’s.
Mark Chaplin, president of commercial sales at Southern Glazer’s, recently told The Spirits Business to expect “continued consolidation across all three tiers”.
The nation’s leading alcohol distributor agreed to buy Long Island-based distributor Clare Rose last month.
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