GOTTA ‘GROW’: Second biggest alcohol distributor in the US leaves California for greener hills

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From Daily Mail:

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.


President and CEO Bob Hendrickson explained the decision, saying, “This decision is driven by rising operational costs, industry headwinds, and supplier changes that made the market unsustainable.”

Hendrickson said the company will “use this moment to sharpen our focus and reinvest in the markets where we’re best positioned to grow.”

That appears to be in either the prairies of Texas or Kentucky, according to his comments.

The information listed is from DailyMail.

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