Image courtesy Treasury Wine Estates

Treasury Wine Estates (TWE) has lost its major distributor in California, Republic National Distributing Company (RNDC), after the latter announced it will cease operations in the state.

RNDC California accounted for 25% of Treasury America’s net sales revenue in the first half of the financial year 2025, and 10% of the company’s total net sales revenue, yet TWE said it does not expect the California closure to impact its F25 results.

In a release to the ASX this morning, TWE said it had been made aware of RNDC’s decision to cease operations in California, which will come into effect on 2 September 2025.

The company also acknowledged that it expects a $10 million drop in its F25 EBITS from the previously stated $780 million to $770 million, which it said is due to “lower than expected” shipments of its “Premium” portfolio—the tier of TWE wines which includes the likes of Wynns, Pepperjack and Squealing Pig (not to be confused with its “Luxury” portfolio, which houses Penfolds).

TWE will now look for a new distributor in California, and said in its statement to investors that it does not expect this to be a challenge.

“As the leading Luxury wine supplier in the US market, TWE is confident that its history working with an extensive network of US distributors, combined with its proven experience in effectively managing distributor changes, which it has done a number of times in the ordinary course through recent years, positions the company strongly to transition to a new route to market in California in the near-term,” said the company.

RNDC is a distributor for TWE in 24 other states, and TWE said it does not expect this California closure to impact these operations.

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