Brown-Forman is ditching Republic National Distributing Company (RNDC) for evolving total-beverage distributor Reyes Beverage Group in California. The announcement today comes on the heels of Tito’s Handmade Vodka, the country’s best-selling spirit, announcing the same move last month.
The switch will become effective May 1, according to a statement from Brown-Forman.
“As we strive to continue to grow our business, optimizing our routes to market is critical,” said Michael Masick, executive vice president and president of the Americas for Brown-Forman in the statement. “After careful consideration, including a formal request for proposal process that began in 2024, we’re confident that Reyes Beverage Group is the ideal partner to help us achieve our ambitious growth objectives in this key market.”
Reyes Beverage has distributed Brown-Forman’s Jack Daniel’s & Coca-Cola ready-to-drink (RTD) in California since its launch in 2022, and has now nabbed the rest of the whiskey giant’s portfolio. Brown-Forman will continue to work with RNDC in 23 other states, at least for now.
This expanded partnership reflects Brown-Forman’s “ongoing commitment to evolving its distribution network to ensure long-term success in the U.S.” read the statement, adding that the company “recognizes the dynamic landscape of the beverage alcohol industry and is proactively adapting to capitalize on new opportunities.”
Brown-Forman announced plans last month to cut 12% of its global workforce of 5,400 employees. The news follows four straight quarters of sales declines for the Jack Daniel’s Whiskey maker. RTDs, as well as flavored whiskies, have been part of a multi-year strategy to bring more young drinkers into the flagship brand’s fold.
The company is among other spirits suppliers who are possibly aiming to optimize their positions with distributors who have been faster to embrace total beverage and are equipped with appropriate capacities. RTDs exceeded $13 billion in 2024 off-premise sales, holding a 12% share of total bev-alc dollar sales and increasing +3.8% in value.
Now, the company is the latest major spirits supplier to jump ship from RNDC. Sazerac began moving its brands to beer wholesalers in 2022 by dipping its toes in the water with beer distributors in Washington and Colorado. It dove in further in early 2023, when it announced plans to leave RNDC and move to a combination of beer and spirits distributors, including Reyes in California, Hawaii and some markets in Texas.
Reyes, the largest beer distributor in the country, has been steadily growing its spirits and RTD portfolio, including with Sazerac’s recent BuzzBallz acquisition.The distributor has been gobbling up smaller beer distributors across California since 2018.
Meanwhile, RNDC, the second largest distributor in the U.S., has said that it is “facing tighter margins, higher costs and shifting consumer preferences.” The company plans to lay off at least 60 employees in its largest market effective March 8, which coincides with Tito’s exit on April 1.