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Alcohol Distributor Republic National Laying Off 1,756 in California as It Exits State

CALIFORNIA, JUL 15 – RNDC will cut 1,756 jobs statewide as Gallo and Proximo select Reyes Beverage Group and Breakthru Beverage Group for California distribution after RNDC's exit.

  • Republic National Distributing Company announced it will exit the California market in September 2025, shedding 1,756 jobs statewide.
  • The exit results from rising operational costs, industry pressures, and supplier contract losses, which RNDC's CEO Hendrickson called a strategic shift unrelated to team performance.
  • Layoffs will begin September 2 across multiple locations including 640 jobs at Tustin, with distribution contracts transferring to firms like Reyes Beverage Group and Breakthru Beverage Group.
  • Gallo, whose brand saw a national increase of 12% to reach 1.7 million cases in the previous year, will transition its California distribution to Reyes Beverage Group starting September 3, a move aimed at maintaining consistent product availability, according to Gallo's vice president Cub Schuller.
  • RNDC's market exit triggered a supplier redistribution surge, with Breakthru acquiring multiple brands and Proximo Spirits partnering with Breakthru, signaling major shifts in California's beverage alcohol distribution landscape.
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VinePair broke the news in on Monday, July 14, 2025.
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