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Exclusive: Gallo Links With RNDC In California’s Independent Retail Channel

July 21, 2021

E.&J. Gallo has appointed Republic National Distributing Co. (RNDC) to handle independent retail and liquor store distribution in the California market, SND has learned. Gallo has previously served as its own distributor to those accounts through its Gallo Sales Company.

“To increase the service level to independent retail accounts and liquor store customers currently serviced by Gallo Sales Company, we will change our route to market for our Direct Store Delivery (DSD) business effective September 1, 2021, awarding our brands to Republic National Distributing Company (RNDC),” said Ted Seburn, Gallo’s vice president of U.S. sales in a statement to SND. “The winery concluded that RNDC has proven through investments in people, technology, and innovation that it is better positioned to service the business going forward.”

While Gallo will now route its direct store delivery business through RNDC, the wine giant will continue to service chains through Gallo Sales Company. The move does not affect the rest of Gallo’s wider California distribution footprint.

“We see this as a win-win-win for our customers, supplier partners and RNDC,” noted RNDC president and CEO Tom Cole. “Our retailers and customers will see better service and selection and RNDC suppliers will have better distribution opportunities. We will certainly grow our business in the retail channel, which will help RNDC continue to grow market share for all our supplier partners versus our competitors.” RNDC’s California revenues were projected at $2.2 billion this year prior to the new deal, according to Shanken’s Impact Newsletter. RNDC is now partnered with Gallo in 10 states nationwide.—Daniel Marsteller

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