In a note to staff yesterday, RNDC CEO Bob Hendrickson provided more context around the second-ranked national distributor’s decision to exit the California market. “This decision was driven by rising operational costs, industry headwinds, and supplier changes that made the market unsustainable,” Hendrickson said.

“Regarding Brown-Forman, their decision to end partnerships across all open markets, effective August 1, is part of a broader strategic shift—not performance-related,” he added of Brown-Forman’s recently announced departure from RNDC across multiple markets.

Moving forward, Hendrickson noted that RNDC will reinvest in key markets, expand teams where there’s good momentum, and look to win new supplier market share. “We’ve already taken initial steps, like adding roles in Texas and in Kentucky—moves which have already resonated positively with suppliers and within the industry,” he said.—Daniel Marsteller