Treasury Evaluating Options In California Post-RNDC Exit
June 3, 2025Treasury Wine Estates is “evaluating alternative distribution options” for its portfolio in the California market following yesterday’s news that partner Republic National Distributing Co. (RNDC) will be exiting that state effective September 2.
In a statement this morning, Treasury said its “history working with an extensive network of U.S. distributors, combined with its proven experience in effectively managing distributor changes, which it has done a number of times in the ordinary course through recent years, positions the company strongly to transition to a new route to market in California in the near-term.”
California accounted for one-quarter of Treasury Americas’ net sales in the six months through December, and about 10% of Treasury’s global net sales. Treasury added that its partnership with RNDC covers 25 states including California, and that RNDC has “reiterated its commitment to investing behind and driving TWE’s portfolio in the remaining 24 states.”
Treasury also updated its guidance for the full fiscal year ending this month, shaving EBITS to approximately A$770 million ($497m) from the earlier A$780 million ($504m), “driven by lower than expected premium portfolio shipments in the U.S., where economic uncertainty and weaker consumer demand has recently impacted wine category performance at price points below US$15.”
The company won’t be alone in seeking new distribution options in the Golden State. RNDC’s supplier partners in California have also included Gallo retail business, William Grant, Edrington, and Bronco, among others. RNDC’s California exit was precipitated by the departures of Tito’s vodka, Gallo’s High Noon, and the Brown-Forman portfolio—all to Reyes Beverage Group—in California this year. Prior to the losses, RNDC’s California business was projected to see revenues of over $2 billion this year, according to Shanken’s Impact Newsletter.
In a statement yesterday, RNDC CEO Bob Hendrickson said, “We’ve made the difficult business decision to withdraw from California which affects many of the roles in the state. We are complying with all regulatory obligations and are committed to handling every transition thoughtfully and smoothly and ensuring everyone is treated fairly and respectfully.”—Daniel Marsteller
Tagged : Republic National Distributing Co., RNDC, Treasury Wine Estates
