The alcohol distribution landscape in the US has taken another turn this week as Republic National Distributing Co announced two divestment transactions.
The embattled group, which sparked shockwaves across the alcohol industry in the US when it withdrew from the Californian market in September, confirmed today (28 April) that it will sell its operations in the country’s 17 Control States to New England-based Martignetti Co’s. A day earlier, Columbia Distributing said it has secured a letter of intent to buy “certain wine and spirits distribution rights in Oregon and Washington” from RNDC.
Financial details about either transaction were not disclosed.
The two deals, the smaller of which also includes an “asset arrangement in Alaska” with Columbia Distributing, accelerate RNDC’s contraction that started with California and was followed in January by the agreement to offload of operations in seven further states to Reyes Beverage Group. Illinois-based Reyes has since agreed to take on five more of RNDC’s state businesses.
“Our priority remains ensuring continuity for our suppliers, customers and employees throughout this transition,” said RNDC CEO Marc Sachs in the announcement regarding the Columbia Distributing deal. In the Martignetti statement, Sachs added: ” This pending agreement reflects a thoughtful process, and I want to recognise the professionalism and commitment of our teams who have built these businesses market by market.”
Just over a month ago, Pernod Ricard’s US division detailed a move away from RNDC for its full portfolio through a “market-by-market approach”. The unit’s CEO, Conor McQuaid, acknowledged a “changing distributor landscape” in the country that required Pernod Ricard USA to “stay focused on what drives performance: consistent execution, strong partnerships and exemplary service for our customers and consumers, all while positioning our portfolio for sustained growth”.
