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California – In a move sending ripples through the nation’s wine and spirits industry, Republic National Distributing Company (RNDC), the second-largest alcohol wholesaler in the United States, announced it will end operations in California effective September 2. The decision leaves more than 2,500 beverage brands—many of them California-based wineries and craft producers—without a distributor in the state’s massive and influential alcohol market.
RNDC, based in Grand Prairie, Texas, cited rising operational costs, shifting supplier relationships, and broad “industry headwinds” as reasons for its withdrawal. While the company has not publicly linked its exit to political or cultural tensions between Texas and California, the contrast has been hard to ignore in industry circles. The notion of a Texas corporation retreating from California has fueled broader speculation about whether business models shaped in one state can survive in another with starkly different regulations, consumer preferences, and labor conditions.
Behind the corporate statements lies a more complicated picture. RNDC recently lost the distribution rights to high-profile brands including Tito’s Handmade Vodka, Cutwater Spirits, Jack Daniel’s, and High Noon—an upheaval in the typically stable alcohol distribution world. Industry publication VinePair described RNDC’s California exit as a “corporate catastrophe basically without precedent.” Some former employees have blamed the company’s management style, saying RNDC tried to operate in California as it does in Texas, underestimating the unique complexities of the West Coast market.
The disruption comes at an already precarious moment for California’s wine industry, which has faced declining domestic consumption and stiff competition from lower-alcohol alternatives like hard seltzers and ready-to-drink (RTD) canned cocktails. While California remains the backbone of the American wine industry, new generations of drinkers are reaching for beverages with portability, convenience, and lighter buzz.
The logistical fallout is significant. Producers left in the lurch are now scrambling to find alternatives, primarily by seeking placement with one of the two dominant national distributors still operating in the state—Southern Glazer’s Wine and Spirits or Breakthru Beverage Group. But capacity is limited, and not all brands will find an easy landing.
A spokesperson for RNDC declined to specify how many California jobs would be lost, but said the company would “handle every transition thoughtfully and smoothly.” Treasury Wine Estates, a major Australian wine conglomerate represented by RNDC in California, said the move won’t affect its financial results this fiscal year but confirmed it is actively seeking a new path forward.
Whether this shift marks a one-off retreat or the beginning of a broader realignment in the U.S. beverage industry remains to be seen. But for many California producers, the clock is ticking.
