Reyes Beverage Group Set to Acquire RNDC Operations in Seven States, Expanding $40 Billion Empire

Republic National Distributing Company (RNDC), the second largest distributor of wine and spirits in the United States, is preparing to sell its operations in seven states to Reyes Beverage Group, the country’s leading beer distributor. The move comes after a period of significant challenges for RNDC, including its recent withdrawal from California and ongoing market pressures.

According to a memo sent to RNDC employees by company president and CEO Marc Sachs on Tuesday, RNDC and Reyes have reached agreement on key economic terms for the transaction. The deal covers RNDC’s business units in Florida, Hawaii, Illinois, Maryland, South Carolina, Virginia, and Washington, D.C. Sachs stated that once the transaction is completed, Reyes plans to operate the newly acquired businesses separately from its existing operations.

Industry sources say that discussions between RNDC and Reyes have been underway for several months. Beer Business Daily reported that Reyes is in “active discussions” to acquire RNDC’s assets in the seven markets. The sale follows RNDC’s decision last September to exit California, citing unsustainable operational costs, increased competition, and the loss of major supplier accounts such as Brown-Forman and Tito’s Handmade Vodka. In May 2025, Brown-Forman moved its California distribution from RNDC to Reyes Beverage Group, further weakening RNDC’s position in the state.

The impact of tariffs imposed on European alcoholic beverages during the Trump administration has also contributed to difficulties for American importers and distributors. Industry analysts warned that these tariffs would create ripple effects throughout the supply chain. The latest wine industry report from Silicon Valley Bank (SVB) describes RNDC’s exit from California as indicative of broader challenges facing wholesale partners in the sector. SVB predicts continued transformation among distributors as they adapt to changing market conditions.

Reyes Beverage Group is a dominant force in U.S. beer distribution, handling about 350 million cases annually for brands including Heineken, Corona, Modelo, Coors Light, Miller Lite, Guinness, Blue Moon, Pabst Blue Ribbon, Athletic Brewing, and Firestone Walker. Its parent company, Reyes Holdings, is one of the largest privately held companies in the country with annual sales estimated at $40 billion. In addition to beer distribution, Reyes Holdings owns Martin Brower—a logistics provider for McDonald’s—and Reyes Coca-Cola Bottling.

Founded in 1974 with the purchase of a small Schlitz beer distributorship in South Carolina for $740,000, Reyes has grown into a major player across multiple beverage categories. The acquisition of RNDC’s operations would mark a significant expansion into wine and spirits distribution for Reyes.

The transaction is expected to reshape the competitive landscape for beverage distribution in several key states. Employees at both companies are awaiting further details about how the transition will be managed and what it will mean for their roles. Regulatory approval will be required before the deal can be finalized. Both companies have indicated they are committed to ensuring a smooth transition for customers and suppliers during this period of change.