05-07-2025
- Business
- San Francisco Chronicle
Major wine company will lay off more than 1,700 California workers and leave the state
The country's second-largest alcohol wholesaler is laying off 1,756 employees in California as it prepares to shut down its entire business in the state, according to government filings.
Republic National Distributing Co., which distributed more than 2,500 alcohol brands in California, announced in June that it would cease operations in the state on Sept. 2, a move widely interpreted as the latest sign of turmoil in the alcohol industry. On Thursday, it filed Worker Adjustment and Retraining Notices with California authorities, reporting layoffs in eight locations: 104 in Hayward, 226 in Pleasanton, 176 in Los Angeles, 640 in Tustin (Orange County), 238 in San Bernardino, 80 in San Diego, 156 in Morgan Hill and 136 in West Sacramento. The company did not respond to requests for comment.
The eliminated positions include roles in sales, human resources, business analysis and many others, ranging in scope from warehouse driver to vice president of sales. Some of the jobs were union-represented, according to letters filed by Republic National.
Headquartered in Texas, Republic National decided to exit California due to what CEO Bob Hendrickson described in a statement as 'rising operational costs, industry head winds, and supplier changes.' The company recently lost several of the nation's highest-profile alcohol brands, including Tito's, High Noon, Cutwater Spirits and Jack Daniel's, among others, all of whom defected over the course of this year. Many took their business to Reyes Beverage Group, which has historically specialized in beer distribution.
The loss of those products would have been a major blow to Republic National, which had invested heavily in the state when it acquired the prolific California distributor Young's Market in 2022. That year, the wholesaler's California sales were $2.8 billion, according to an estimate by the industry analyst Impact Databank.
Since the exit announcement, other wholesalers have rushed to snatch up many California wine and spirits brands from Republic National's portfolio. Popular wineries including Scheid Family, Hope Family and St. Supery have joined Regal Wine Co., which was founded by the owners of Jackson Family Wines. Others like Ridge and Courtney Benham Wines selected Breakthru Beverage Group.
'It's incredibly sad,' said Lance Winters, master distiller at St. George Spirits in Alameda, which recently enlisted Skurnik Wines & Spirits as its California distributor. 'Because we had people who were essentially like family to us, who were really talented and had incredible longevity in their positions.'
