Brown-Forman has followed this week’s divestment of US Control States operations by partner Republic National Distributing Co with a swathe of distributor changes.
RNDC, which is in the process of undertaking a “business and market alignment assessment”, confirmed yesterday (28 April) that it will sell its operations in the country’s Control States to New England-based Martignetti Co’s. The news has been followed by the Jack Daniel’s owner’s announcement of the completion of a “comprehensive review of its distributor agreements across 18 state-managed [Control] markets”.
Four new distribution partners will take over from RNDC in 11 Control States, while “the remaining seven control states will continue to be served by their existing distributor”.
The following companies will replace RNDC from 1 June:
- Johnson Brothers in Idaho, Montana, North Carolina, Oregon, Utah and Wyoming
- Southern Glazer’s Wine & Spirits in Maine, New Hampshire and Vermont
- Superior Beverage Group in Ohio, and
- Great Lakes Wine & Spirits in Michigan
When contacted by Global Drinks Intel, a company spokesperson said the existing arrangements comprise:
- Breakthru Beverage Group in Pennsylvania, Virginia and Montgomery County in Maryland
- Johnson Brothers in Iowa and West Virginia, and
- United Distributors in Alabama and Mississippi
“Brown‑Forman would like to recognise and thank outgoing distributor RNDC for their years of partnership and collaboration in these markets,” the group said.
USA & Canada MD Robinson Brown IV added: “Control states require a unique combination of regulatory expertise and strong commercial execution. With these new partners, we’re better equipped to expand our footprint and ensure our brands are in the right place at the right time to win with the consumer.”
At the end of May last year, Brown-Forman, which three months earlier had dropped RNDC’s distribution of the bulk of its portfolio in California, cuts its arrangement with the distributor to just 12 states, down from 23 previously.
This week’s biggest development in the global spirits industry has seen Brown-Forman and Pernod Ricard conclude their “merger of equals” negotiations without an agreement.
