Sacramento, California – California’s spirits industry is facing a sudden and severe disruption as one of the nation’s largest alcohol distributors prepares to exit the state, triggering more than 1,700 layoffs and placing hundreds of small brands at risk of collapse.
Republic National Distributing Company (RNDC), the second-largest alcohol distributor in the U.S., filed a series of WARN (Worker Adjustment and Retraining Notification) notices this month indicating 1,756 job cuts statewide. In West Sacramento alone, where RNDC acquired Young’s Market Company just two years ago, 136 layoffs are planned.
RNDC will cease operations in California on September 2, a move it attributes to rising operational costs, shifting industry conditions, and the loss of major suppliers. Those suppliers include titans like Tito’s Handmade Vodka and Gallo’s High Noon, both of which moved to Reyes Beverage Group. RNDC also recently lost Brown-Forman’s distribution partnership, a blow that insiders say left a large hole in its financial structure…