Ste. Michelle Strikes New Five-Year Deals With RNDC In Nine Markets

Ste. Michelle Wine Estates has struck new five-year distribution deals with Republic National Distributing Company (RNDC) in nine markets: Louisiana, Maryland, Nebraska, North Dakota, Oklahoma, South Dakota, Texas, Virginia, and Washington, D.C. RNDC already handles Ste. Michelle’s brands across the affected markets.

The partnership between Ste. Michelle and RNDC began in 1985, and the Washington winemaker “has grown to be a brand leader among RNDC’s wine suppliers in the markets it is distributed,” RNDC said in a statement. RNDC’s pending merger with fellow wholesale giant Breakthru Beverage is expected to close before the end of June. The merger will create a 30-market wholesaler with combined revenues approaching $13 billion for 2018.

In addition to RNDC, Southern Glazer’s is a key distributor for Ste. Michelle, handling the company’s brands across major markets like California, Florida, and New York.

Ste. Michelle reported a 6.4% net revenue decline to $698 million for the year ended December 31. Shipments fell 8.6% to around 8.5 million cases, with parent company Altria citing negative impact from “competitive activity, continued trade inventory reductions, and slower premium wine category growth.” Over the past year, analysts have suggested that Ste. Michelle could be a potential takeover target for competitors like Constellation or Treasury Wine Estates. —Daniel Marsteller

Tagged : RNDC, Ste. Michelle

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