RNDC to lose Pernod Ricard "in most markets" as supplier exodus deepens

Editor’s note: This is a developing story and will be updated periodically with new information. If you have tips about what’s going on at RNDC, please get in touch by emailing me ([email protected]) or texting me on Signal (dinfontay.11). Anonymity available.—Dave.

The hits just keep coming for Republic National Distributing Company. On Thursday, chief executive officer sent an internal memo to employees announcing that Pernod Ricard USA (PRUSA), parent company of some ~200 brands like Absolute, Beefeater, and Jameson, would be exiting the flailing mega-wholesaler’s portfolio “in most markets.”

“I want to be clear that Pernod's decision is not a reflection of the execution, commitment, or professionalism of our teams,” wrote Marc Sachs in an email to RNDC staff late afternoon on March 19th. Fingers obtained a copy of that message from a current employee, who has been granted anonymity to share information from within the company without fear of retaliation. “This does not impact the progress we're making as a business, and it does not change our path forward, including our ongoing pending Reyes transaction.”

In a press release Friday morning, PRUSA confirmed the broad details of the move, which will see it realigning with RNDC’s middle-tier foes Southern Glazer’s Wine & Spirits and Johnson Brothers in some markets.

“Contingent upon closing of Reyes Beverage Group's acquisition of certain markets from Republic National Distributing Company, Reyes will distribute the Mainline and RTD portfolio in Maryland and Washington, D.C.,” the release adds. This appears to conflict in part with Sachs’ Thursday memo, which stated that RNDC “will still represent the [PRUSA] portfolio in Maryland and Washington D.C. and will retain Gem Brands in Colorado.”

Neither firm immediately responded to a request for clarification.

The near-complete exit of the spirits conglomerate represents the latest departure in a multi-year exodus that has drained RNDC of key suppliers and crucial volume. Since the top of this year, Proximo Spirits and Delicato Family Wines have both announced significant exits, compounding the chaos and losses stemming from the wholesaler’s catastrophic collapse in California last June. Layoffs have followed apace.

“I know I’m on a sinking ship, I’m just hoping the waters not too cold,” a current RNDC employee told Fingers, reflecting on the PRUSA departure.

Fingers needs your support to do more independent journalism.