Republic National Distributing Company’s (RNDC) portfolio in California has shrunk again, as Gallo moves its popular High Noon Sun Sips ready-to-drink (RTD) canned cocktail line to the Reyes Beverage Group.
The move takes effect July 1, according to a statement from Gallo.
“As a result of our continuous route to market assessment, Gallo is evolving its approach with High Noon in California to ensure continued success, competitiveness and increased market coverage for the brand,” Gallo wrote.
High Noon is the seventh-best selling brand family in the spirits category, with double-digit gains in dollar sales (+12.8%) and volume (+12.2%) in off-premise channels (Total U.S. xAOC + liquor + open state + convenience) in the 52-week period ending March 22, according to NIQ data from 3 Tier Beverages.
High Noon held the largest dollar share (28%) among spirits-based RTDs in the 52-week period ending February 22, according to NIQ data analyzed by Goldman Sachs Equity Research. The brand’s dollar share is nearly three times as large as its nearest competitor, Anheuser-Busch InBev’s Cutwater Spirits (10%), but the spirits-based RTD segment remains fragmented, with all other brands outside the top 11 accounting for 45% of dollars.
The spirits-based RTD is the latest brand to move to Reyes from RNDC, following the Brown-Forman portfolio in February and Tito’s Vodka in January. Tito’s departure took effect on April 1, while Brown-Forman’s is slated for May.
Fireball-maker Sazerac was the first major spirits player to move its brands out of RNDC’s houses in several states in 2023. Sazerac selected Reyes in California, and a mix of beer distributors and wine and spirits wholesalers in other states.
Beer networks have become a popular destination for spirits-based RTD brands due to their connection to the convenience channel and command over cold boxes.
Days after Brown-Forman announced its plans to exit, RNDC then-CEO and president Nick Mehall announced his own departure, after leading one of the country’s largest wine and spirits distributors for more than three years.
Gallo’s wine and spirits brands will remain with RNDC in California, according to the statement.
“We applaud the RNDC California sales team for their hard work to elevate High Noon’s presence in the market over the years,” Gallo said. “Moving forward, we believe this new route-to-market with Reyes Beverage Group in California will further support the growth potential and ongoing success of the brand. Also, as a result of this change, the RNDC California sales team will be able to dedicate its focus on Gallo’s diverse and robust wine and spirits portfolio.”
Reyes already carries several brands from Gallo’s malt and RTD portfolio, including Montucky Cold Snacks, Beach Juice, Salt Point and Pink Whitney’s malt-based offerings, according to a Reyes spokesperson.
“We are confident in our ability to build upon an already solid foundation to further support the growth potential and continued success of the High Noon brand moving forward,” the company wrote in a statement.
On the East Coast, Gallo recently moved High Noon to New Jersey’s Molson Coors-aligned network, which includes Shore Point Distributing, Peerless Beverage and Kramer Beverage, Gallo told Brewbound.