Latest news with #BobHendrickson
Daily Mail
a day ago
- Business
- Daily Mail
Second biggest alcohol distributor in the US quits California
The second largest alcohol distributor in the US has announced it is pulling out of California , blaming rising costs of doing business in the state. Texas-based Republic National Distributing has said that it will no longer do business in California after September 2. This has sent more than 2,500 drinks brands scrambling to find a new wholesaler and distributor in the state, which is famous in large part for its wine production. The departure of a wholesale giant from the largest wine market in the US is also a warning sign for an industry which is already struggling as Americans increasingly cut back on alcohol . Republic National, which is based in Grand Prairie, has not suggested that politics played a role in its decision to quit California. But the news may be resonating widely in part because of the narrative it presents that a Texas company wants nothing to do with California, the San Francisco Chronicle reported. President and CEO Bob Hendrickson said: 'This decision is driven by rising operational costs, industry headwinds, and supplier changes that made the market unsustainable.' He added that the company is 'using this moment to sharpen our focus and reinvest in the markets where we're best positioned to grow', naming Texas and Kentucky. It comes weeks after the distributor announced a 'strategic reinvestment' in its Texas operations. Several dozen of Republic National's crucial brands have defected in recent months to other distributors. This means the company no longer has the rights to sell popular spirits such as Jack Daniel's, Tito's and High Noon in California. While it is unclear why all the brands cut ties with the company, it is likely to have been a financial blow as many shifted distribution to a major rival, Reyes Beverage Group. Some workers have blamed executive mismanagement for the company's departure from California, according to specialist outlet VinePair. 'They started focusing on numbers instead of customer satisfaction and that's what drove them to their fall,' an anonymous California-based worker told the outlet. A former worker claimed the the company was 'terribly run' and its execs were 'in over their heads' in the Golden State. They alleged executives from Texas did not get out to meet customers or 'learn the market.' John Buehler, owner of Napa Valley's Buehler Vineyards, said Republic National's departure from California 'left everybody in the lurch.' Wholesale purchases drive 80 percent of the business. 'It was really such short notice,' he told the San Francisco Chronicle. Although Republic National continues to sell his wines in a handful other states, he will now need to find a new distributor in the Golden State. The company had only recently increased its presence in California when it purchased distributor Young's Market Co. in 2022. Industry analyst Impact Databank estimated Republic National made $2.8 billion in sales in California alone in 2022. But despite this success, Buehler told the outlet that the distributor consistently underperformed for him in terms of sales. 'I think I should have seen the writing on the wall,' he said. 'You lose these suppliers, and you're not attracting any new suppliers. Still, I had no idea that they were going to close up shop.' It comes after Republic National announced a 'strategic reinvestment' in its Texas operations in May, according to Global Drinks Intel. The company said the move would create around 100 jobs. 'We've taken a close look at where we are – and more importantly, where we need to be,' chief sales and execution officer Taylor Sommer said at the time. 'After listening to our associates, customers and supplier partners, one thing is clear: we need to strengthen our presence and performance in the market. 'Texas is a critical part of our foundation, and we're proud to reinvest here.'
Daily Mail
2 days ago
- Business
- Daily Mail
Powerful alcohol distributor abruptly quits California as it takes stand over problems doing business in the state
The second largest alcohol distributor in the US has announced it is pulling out of California, blaming rising costs of doing business in the state. Texas-based Republic National Distributing has said that it will no longer do business in California after September 2. This has sent more than 2,500 drinks brands scrambling to find a new wholesaler and distributor in the state, which is famous in large part for its wine production. The departure of a wholesale giant from the largest wine market in the US is also a warning sign for an industry which is already struggling as Americans increasingly cut back on alcohol. Republic National, which is based in Grand Prairie, has not suggested that politics played a role in its decision to quit California. But the news may be resonating widely in part because of the narrative it presents that a Texas company wants nothing to do with California, the San Francisco Chronicle reported. President and CEO Bob Hendrickson said: 'This decision is driven by rising operational costs, industry headwinds, and supplier changes that made the market unsustainable.' He added that the company is 'using this moment to sharpen our focus and reinvest in the markets where we're best positioned to grow', naming Texas and Kentucky. It comes weeks after the distributor announced a 'strategic reinvestment' in its Texas operations. Several dozen of Republic National's crucial brands have defected in recent months to other distributors. This means the company no longer has the rights to sell popular spirits such as Jack Daniel's, Tito's and High Noon in California. While it is unclear why all the brands cut ties with the company, it is likely to have been a financial blow as many shifted distribution to a major rival, Reyes Beverage Group. Some workers have blamed executive mismanagement for the company's departure from California, according to specialist outlet VinePair. 'They started focusing on numbers instead of customer satisfaction and that's what drove them to their fall,' an anonymous California-based worker told the outlet. A former worker claimed the the company was 'terribly run' and its execs were 'in over their heads' in the Golden State. They alleged executives from Texas did not get out to meet customers or 'learn the market.' John Buehler, owner of Napa Valley's Buehler Vineyards, said Republic National's departure from California 'left everybody in the lurch.' Wholesale purchases drive 80 percent of the business. 'It was really such short notice,' he told the San Francisco Chronicle. Although Republic National continues to sell his wines in a handful other states, he will now need to find a new distributor in the Golden State. The company had only recently increased its presence in California when it purchased distributor Young's Market Co. in 2022. Industry analyst Impact Databank estimated Republic National made $2.8 billion in sales in California alone in 2022. But despite this success, Buehler told the outlet that the distributor consistently underperformed for him in terms of sales. 'I think I should have seen the writing on the wall,' he said. 'You lose these suppliers, and you're not attracting any new suppliers. Still, I had no idea that they were going to close up shop.' It comes after Republic National announced a 'strategic reinvestment' in its Texas operations in May, according to Global Drinks Intel. The company said the move would create around 100 jobs. 'We've taken a close look at where we are – and more importantly, where we need to be,' chief sales and execution officer Taylor Sommer said at the time. 'After listening to our associates, customers and supplier partners, one thing is clear: we need to strengthen our presence and performance in the market. 'Texas is a critical part of our foundation, and we're proud to reinvest here.'
Miami Herald
3 days ago
- Business
- Miami Herald
Major alcohol distributor quits California, signals warning
If you think everyone's still obsessed with craft beer and California cabernets, the stats say something else entirely. Americans are rethinking their relationship with booze, and the numbers don't lie: Beer and wine sales are sliding. Wine, in particular, is at its least popular point in 30 years. Don't miss the move: Subscribe to TheStreet's free daily newsletter Beer is not doing much better, especially craft beer. For four consecutive years the number of new brewery openings declined, with 434 new breweries opening and 501 closing in 2024. Why? People are more health-conscious, especially after the pandemic years when alcohol consumption was at concerning levels for many people. Now, "mindful drinking" is trending, and younger people are leaning into moderation or skipping alcohol altogether. Related: Coca-Cola doubles down on growing new category "Why would I put that toxin my body?" my daughter's boyfriend mused recently. He's a personal trainer and takes his fitness and nutrition very seriously. I had a few good comebacks but I didn't share them. Perhaps a discussion best had over a cold IPA? Anyway, the "California sober" lifestyle, where people ditch alcohol but might still enjoy cannabis or just drink less, has gone mainstream. Maybe in part due to the drink-less trend, one of the biggest names in alcohol, and in wine distribution in particular, just announced it's pulling out of California. For a state that's basically synonymous with wine, this is a big deal. Republic National Distributing Co., the nation's second-largest alcohol wholesaler, announced last week that it will not do business in California after Sept. 2. The news sent more than 2,500 beverage brands, including hundreds of winemakers, scrambling to find a new distributor in the state, as reported in The San Francisco Chronicle. While the Grand Prairie, Texas-based Republic National has not suggested that politics played a role in the decision, the news may be resonating so widely in part because of the narrative it presents: A Texas company wants nothing to do with California. Related: Coca-Cola makes controversial move to win customers Republic CEO Bob Hendrickson cited "rising operational costs, industry headwinds, and supplier changes as reasons for the move," per the Chronicle. Recently Republic National Distributing Co. also reportedly lost the rights to sell popular spirits like Tito's vodka, High Noon, Cutwater Spirits, and Jack Daniel's, among others, which was likely a big financial blow to the company, according to VinePair. VinePair also called the news "corporate catastrophe basically without precedent in the United States' typically stable beverage-alcohol distribution business." The VinePair story further quotes Republic National employees as saying the Texas owners of the company were both arrogant and incompetent and thought they could do business in California the way they do in Texas. So, what does this shakeup mean for California's booze business? It is seen as a wake-up call for the whole industry. California's wine business has been hit hard by slumping sales and a new generation that's reaching for canned cocktails, which are often lower in alcohol than beer or wine. Spirits are definitely having a moment, so the party isn't totally over. Ready-to-drink (RTD) canned cocktails are everywhere, and even companies like Coca-Cola are jumping in. RTDs are convenient, lower in alcohol, and fit right in with the new, chill approach to drinking. As for the companies being left behind in California, many wineries in California and distilleries will now try to jump onto the lists of the other two big distributors, Southern Glazer's Wine and Spirits or Breakthru Beverage Group. Related: Las Vegas Strip adds food hall of famous names The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
San Francisco Chronicle
12-06-2025
- Business
- San Francisco Chronicle
A major wine company is exiting California. Here's what it means
Alcohol distribution does not sound like an exciting topic, but it's suddenly the hot gossip within California wine circles. Republic National Distributing Co., the nation's second-largest alcohol wholesaler, announced last week that it will no longer do business in California after Sept. 2. It's sent more than 2,500 beverage brands scrambling to find a new distributor in the state. This reshuffling has generated so much attention largely because it looks like a dire warning for an industry already known to be in peril. If a wholesale behemoth is simply opting out of the largest wine market in the U.S. — if it would rather leave than try to compete — that seems like confirmation that the alcohol industry's downturn has not reached its bottom. While the Grand Prairie, Texas-based Republic National has not suggested that politics played a role in the decision, the news also may be resonating so widely in part because of the narrative it presents: A Texas company wants nothing to do with California. CEO Bob Hendrickson cited 'rising operational costs, industry head winds, and supplier changes' as reasons for the move. The latter is what everyone in the wine industry seems to be discussing. Some of Republic National's most important brands have defected lately to other distributors, especially to the beer-focused Reyes Beverage Group. Since the beginning of the year, the company has lost the right to sell top-selling spirits including Tito's, High Noon, Cutwater Spirits and Jack Daniel's, among many others. The loss of those brands had to be a major financial blow to Republic National. Why they all left, and all at once, is unclear. VinePair's Dave Infante posited that it was the result of Reyes' quest to increase its spirits portfolio after a change in California law made it easier for beer wholesalers to sell liquor. 'It left everybody in the lurch,' said John Buehler, owner of Napa Valley's Buehler Vineyards, where wholesale purchases drive 80% of the business. 'It was really such short notice.' Although Republic National continues to sell his wines in a few other states, he'll need to find a new California distributor. Many wineries and distilleries will now try to jump onto the lists of the other two big dogs, Southern Glazer's Wine and Spirits or Breakthru Beverage Group. The Napa-based importer Wilson Daniels has already announced it's bringing its book of prestigious wines like Burgundy's Domaine de la Romanee-Conti and Piedmont's Gaja to Breakthru, while Treasury Americas president Ben Dollard said he's still 'evaluating alternative arrangements' for wineries including Beaulieu, Frank Family and Daou. Other producers will look to smaller distributors, like Chambers & Chambers or Skurnik Wines & Spirits, for their California sales. But in a contracting wine market, there may not be room for everybody on those lifeboats. 'It's going to be a thinning of the herd,' Buehler said. 'The ankle biters that were in that portfolio, the little guys — there's going to be a lot of collateral damage.' Republic National had only recently increased its presence in the Golden State when it completed the purchase of major California distributor Young's Market Co. in 2022. The industry analyst Impact Databank estimated the company's sales that year at $2.8 billion in California alone. Despite that considerable power, however, Buehler — who had been with Young's since 1992 and moved to Republic National as a result of that acquisition — said that Republic National consistently 'underperformed' for him in terms of sales. He now regrets waiting so long to find a new distributor. 'I think I should have seen the writing on the wall. You lose these suppliers, and you're not attracting any new suppliers,' he said. Still, 'I had no idea that they were going to close up shop.' At least Republic National appears to still be selling his wine ahead of the September shutdown date. 'I keep getting purchase orders,' Buehler said, 'so I guess it's business as usual.'
