Treasury Wine Estates (TWE) is exploring new distribution arrangements for its portfolio in California, with the closure of one of its current US distributors’ California operations pushing the organisation to find a new route to market.
Republic National Distributing Company (RNDC) will cease operations in California, effective from Tuesday 2 September. TWE’s relationship with RNDC spans 24 additional US states, none of which are expected to be impacted by the closure of its California operations.
Already, TWE has begun to evaluate alternative arrangements, and is confident that its history in the market puts the company in a strong position to pursue new opportunities.
Having worked with an extensive network of US distributors, TWE is experienced in effectively managing distributor changs, and expects to transition to a new route to market in California in the near-term.
In the first half of the 2025 financial year, RNDC California accounted for approximately 25 per cent of Treasury Americas’ net sales revenue and approximately 10 per cent of the Group net sales revenue. RNDC has retained its commitment to investing in TWE’s portfolio in the 24 remaining states, and the closure of RNDC’s California operations is not expected to impact TWE’s results in FY25.
Though TWE had previously expected EBITS of $780m for the 2025 financial year, the luxury wine brand is now anticipating EBITS of $770 million, attributing the variance to lower-than-expected premium portfolio shipments in the US. TWE says economic uncertainty and weaker consumer demand is impacting on the performance of wine priced below US$15.