RNDC and Provi settle lawsuit
US distributor Republic National Distributing Company (RNDC) will join forces with alcohol e-commerce platform Provi to fulfil orders, marking the end of a lawsuit that began in 2022.
In March 2022, business-to-business alcohol marketplace Provi filed a lawsuit against distributors RNDC and Southern Glazer’s Wine & Spirits, alleging they had violated antitrust laws.
Provi claimed the companies had made efforts to ‘maintain or enhance their respective monopoly power’ in online alcohol marketplaces, search and display advertising on online alcohol marketplaces, and data analytics services in certain states.
Provi asserted that some of the actions included blocking and rejecting orders for wine and spirits when retailers select Provi, and ‘forcing or coercing retailers not to use Provi’.
However, more than three years after the case was filed, Provi and RNDC have reached a ‘mutually satisfactory resolution’ to the lawsuit. SGWS, the largest alcohol distributor in the US, and Provi reached an agreement to settle their lawsuit in April this year.
As a result, Provi and RNDC will develop an integration that allows retailers to place orders using Provi’s digital platform.
The partnership will enable retailers to gain access to the distributor’s portfolio through Provi in the markets in which RNDC operates.
‘Efficient and connected industry’
“We are excited to work alongside the RNDC team to advance our shared vision for the industry,” said Taylor Katzman, founder and CEO of Provi.
“Provi and RNDC are committed to improving the beverage alcohol space while supporting the evolving needs of retailers and their distributor partners – within the framework of the three-tier system. This strategic relationship brings us closer to building a more efficient and connected industry.”
Provi will also complement RNDC’s existing e-commerce platform, eRNDC, by providing an additional channel to access the distributor’s portfolio.
RNDC’s online platform is active in 22 states plus Washington DC. In 2023, eRNDC generated US$800 million in 2023, reaching US$1.7 billion in lifetime sales.
“Our purpose is to serve the evolving needs of our partners– our associates, suppliers, customers, and the broader industry,” added Bob Hendrickson, RNDC president and CEO.
“This agreement reflects our continued focus on smart, practical innovation that enhances how we serve the industry.
“By partnering with Provi, we will give customers more flexibility in how they work with us, while maintaining the reliability and consistency they expect from RNDC.”
The RNDC-Provi integration is expected to roll out later this year.
Provi recently renewed its partnership with US distributor Breakthru Beverage Group in 16 states.
RNDC invested in e-commerce platform Thirstie in 2022, a move it said would bring a ‘compliant, technology-driven, more efficient approach’ to the alcohol industry.
Last month, RNDC announced its exit from California, threatening the financial viability of scores of distillers.
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