RNDC to shrink US presence with potential Reyes deal
Just months after its California exit, Republic National Distributing Company (RNDC) has confirmed it is in advanced talks with Reyes Beverage Group to sell its operations in seven US markets.
The US distribution giant is, however, keeping additional details under wraps for now.
Marc Sachs, who joined RNDC as president and CEO last month, said: “We can confirm that we are in advanced discussions with Reyes Beverage Group regarding potential transactions involving our businesses in Florida, Hawaii, Illinois, Maryland, South Carolina, Virginia and Washington DC.
“We have no further comment at this time. Our top priority continues to be supporting our suppliers and the markets we serve.”
Reyes Beverage Group, the largest beer distributor in the US, also made a similar response when asked to comment.
A spokesperson said the company was “unable to share more details at this time”, but confirmed the two businesses were in “active discussions” regarding the seven markets.
The potential deal comes just five months after RNDC’s abrupt departure from California, the largest spirits market in the US, leaving scores of small producers scrambling to find a new distributor.
At the time of the announcement in June, RNDC’s former CEO said the exit was due to “rising operational costs, industry headwinds, and supplier changes” that made it an unsustainable market.
The company filed Worker Adjustment and Retraining Notification Act (WARN) notices on 1 July confirming 1,756 jobs in California would be cut from September.
Several major spirits producers have shifted their distribution from RNDC to Reyes in the past year, including Jack Daniel’s maker Brown-Forman.
Reyes has also signed up vodka giant Tito’s and Gallo’s High Noon seltzer brand.
Meanwhile, Pernod Ricard USA teamed up with Reyes and Crescent Crown as part of a new route-to-market strategy in September.
Through this new structure, Pernod’s US arm has divided the brands outside of its core portfolio into two divisions – Gem and RTD.
The new RTD division saw Pernod Ricard move distribution in eight states to beer-focused distributors, with the majority managed by Reyes, alongside Crown Crescent (who operate in Arizona and Louisiana).
Related news
Is Diageo trying to sell its baijiu business?
