SND: Can you give us some insight into RNDC’s expansion strategy over the last few years?

Nick Mehall: We came off a significant number of years of M&A activities, expanding the overall footprint. We’re having new discussions: now that we’ve achieved a national footprint, how do we really unlock the value for our suppliers as well as our customers?

It wasn’t just about planting the RNDC flag in markets across the U.S. It was really about bringing a differentiated relationship and model to our suppliers and customers. It allows them more of a one-stop shop in terms of how they engage, but also how we program and how we price. It gives consistent levels of execution and standards that we hold ourselves to across the country, and it allows us to really service the customer in a different way, particularly the national accounts, which continue to grow in the marketplace.

SND: What’s the outlook and plan for your newest markets?

Mehall: Each one of these markets is so dynamic and different individually. So we take a very different approach as we think about California versus New York or Illinois.

In California we’ve been at it for a few years now. We did complete the full acquisition and have ownership of the West Coast. It’s really about introducing RNDC’s disciplines, our processes, our technology, and to integrate that business. We’ve got a new structure and new people on the ground to be able to build on the legacy of Young’s.

Our suppliers are excited about it. They see the momentum that we’ve got in California, and we’ve got a similar thought process in Illinois and New York. It’s been a couple of years since we’ve entered Illinois. It has a strong foundation and we’re building upon that, especially our fine wine book.

SND: What do you see in future for the RNDC joint venture with Opici in New York?

Mehall: New York is still new, and we’ve got a great relationship with Dina Opici and the family. This marketplace is very different from the national accounts you have on the West Coast, and it takes a different model. It’s been less than two years out of the gates, and it’s been wildly successful in terms of our ability to grow. I fully expect to double the size of this business over the course of this year.

Working in New York is different from your standard national account call or the grocery chains that serve a great percentage of the overall volume. This is very much up and down the street. Relationships matter, and I think that’s been a core theme, that we’re developing those relationships with the core retailers, both on- and off-premise, and investing in the right team and educating the team on the broader portfolio as we bring new brands to that sales force.

SND: What’s new with eRNDC? How have your customers taken to the platform?

Mehall: We crossed over $1.7 billion in sales since inception. We’ll have a billion dollars worth of sales just in this year alone.

We track a number of different metrics around how we’re performing. We’re in 20 markets today. We’re bringing New York and Illinois up to speed and bringing that technology into those marketplaces as well. The adoption rates have been strong. Over 50% of the users that are engaging with the tool, they aren’t just going in to buy a product. They’re searching, they’re exploring the different portfolios, they’re trying to understand different brands available in their marketplace.

The dialogue that our sales reps are having with customers has changed. They’re spending less time talking about administrative aspects of the relationship and more about the brands, the stories, the options, what’s trending in certain areas, and what would fit well for the customer.

SND: Sticking with your digital platforms, can you update us on your partnership with Flaviar and Wine-Searcher?

Mehall: Flaviar gives us a different connection point with the consumer to learn more about their behaviors, learn more about what’s trending, and what they’re searching for. We’ve been able to start to provide that level of insights to our suppliers. They see the value of the e-commerce platform, and that business-to-consumer—not just B2B like eRNDC provides—offers insight into how we position the brands.

If you really think back on how we used to interact with the end consumer in the past and in traditional brick and mortar, we did it through displays and shelf-talkers. The consumer now is spending more time researching brands online before they actually make their decision. Platforms like Flaviar or Wine-Searcher provide RNDC a different way to make that same connection with the consumer that we historically did in brick and mortar, but now in that digital space.