Latest news with #BobHendrickson
Daily Mail
05-07-2025
- Business
- Daily Mail
Alcohol giant lays off 1,750 workers after quitting California
Republic National Distributing, a once-dominant company that linked famous beer and vodka brands with local bars, filed paperwork to lay off 1,756 employees. Staffers in sales, analytics, and HR roles across California are set to get their pink slips. The job cuts come as the Texas-based company plans to shutter its distribution operations in California by September 2. It's the latest warning sign for an industry struggling with closures and job losses as Americans increasingly cut back on alcohol. There are reportedly three main reasons for the statewide departure: increasing debt, sky-high costs, and a loss of important contracts to competitors. Republic National has not suggested that politics played a role in its decision, but it is re-investing in Texas with 100 new jobs. President and CEO Bob Hendrickson said: 'This decision is driven by rising operational costs, industry headwinds, and supplier changes that made the market unsustainable.' He added the company is 'using this moment to sharpen our focus and reinvest in the markets where we're best positioned to grow.' California remains a conundrum for business leaders. It makes more money than any other US market and is the fourth-largest economy in the world — but also one of the most expensive places to do business, with high gas, rent, and labor costs. Republic acquired Young's Market, a distributor with a complex web of local hubs, in 2022. But insiders weren't impressed with the company's management. 'They started focusing on numbers instead of customer satisfaction and that's what drove them to their fall,' an anonymous California-based worker told specialist outlet VinePair.
Daily Mail
05-07-2025
- Business
- Daily Mail
Alcohol giant lays off 1,750 workers after abruptly quitting business in California
America's second-largest alcohol distributor is laying off more than 1,700 employees after announcing it is pulling out of business in California. Republic National Distributing, a once-dominant company that linked famous beer and vodka brands with local bars, filed paperwork to lay off 1,756 employees. Staffers in sales, analytics, and HR roles across California are set to get their pink slips. The job cuts are coming as the Texas-based company plans to shutter its distribution operations in California by September 2. It's the latest warning sign for an industry that's already struggling with closures and job losses as Americans increasingly cut back on alcohol. There are reportedly three main reasons for the statewide departure: increasing debt, sky-high costs, and a loss of important contracts to competitors. Republic National has not suggested that politics have played a role in its decision, but it is re-investing in Texas with 100 new jobs. President and CEO Bob Hendrickson said: 'This decision is driven by rising operational costs, industry headwinds, and supplier changes that made the market unsustainable.' He added that the company is 'using this moment to sharpen our focus and reinvest in the markets where we're best positioned to grow.' California remains a conundrum for business leaders. Business in the state makes more money than any other US market. It's the fourth-largest economy in the world, but also one of the most expensive places to do business. But entering that market remains critically expensive, with high gas, rent, and labor costs. Republic acquired Young's Market, a distributor with a complex web of local hubs, in 2022. But company insiders weren't impressed with Republic National's attention to details. 'They started focusing on numbers instead of customer satisfaction and that's what drove them to their fall,' an anonymous California-based worker told specialist outlet VinePair. A former worker claimed the company was 'terribly run' and its execs were 'in over their heads' in the Golden State. Recently, the company also lost some of its most important contracts. Jack Daniels, Tito's, and High Noon all moved their business over to Reyes Beverage Group, a beer distributor with a long history in California. Losing those contracts represented a huge loss for the company, according to The Spirits Business, and nearly forced the distributor's hand in jumping ship from the nation's largest alcohol market. Industry analyst Impact Databank estimated Republic National made $2.8 billion in sales in California alone in 2022. The company didn't immediately respond to request for comment. Several other alcohol brands have encountered major business disruptions in the past year, as consumers hang up their shot glasses in an increasingly inflationary economic environment. In February, Alamo Beer Company, a San Antonio-based brewer, filed for Chapter 11 bankruptcy. Brüeprint Brewing Company, a North Carolina-based microbrewery, liquidated its business in April.
San Francisco Chronicle
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.'
Daily Mail
19-06-2025
- Business
- Daily Mail
Second biggest alcohol distributor in the US quits California
The second largest alcohol distributor in the US has announced it is pulling out of California , blaming rising costs of doing business in the state. Texas-based Republic National Distributing has said that it will no longer do business in California after September 2. This has sent more than 2,500 drinks brands scrambling to find a new wholesaler and distributor in the state, which is famous in large part for its wine production. The departure of a wholesale giant from the largest wine market in the US is also a warning sign for an industry which is already struggling as Americans increasingly cut back on alcohol . Republic National, which is based in Grand Prairie, has not suggested that politics played a role in its decision to quit California. But the news may be resonating widely in part because of the narrative it presents that a Texas company wants nothing to do with California, the San Francisco Chronicle reported. President and CEO Bob Hendrickson said: 'This decision is driven by rising operational costs, industry headwinds, and supplier changes that made the market unsustainable.' He added that the company is 'using this moment to sharpen our focus and reinvest in the markets where we're best positioned to grow', naming Texas and Kentucky. It comes weeks after the distributor announced a 'strategic reinvestment' in its Texas operations. Several dozen of Republic National's crucial brands have defected in recent months to other distributors. This means the company no longer has the rights to sell popular spirits such as Jack Daniel's, Tito's and High Noon in California. While it is unclear why all the brands cut ties with the company, it is likely to have been a financial blow as many shifted distribution to a major rival, Reyes Beverage Group. Some workers have blamed executive mismanagement for the company's departure from California, according to specialist outlet VinePair. 'They started focusing on numbers instead of customer satisfaction and that's what drove them to their fall,' an anonymous California-based worker told the outlet. A former worker claimed the the company was 'terribly run' and its execs were 'in over their heads' in the Golden State. They alleged executives from Texas did not get out to meet customers or 'learn the market.' John Buehler, owner of Napa Valley's Buehler Vineyards, said Republic National's departure from California 'left everybody in the lurch.' Wholesale purchases drive 80 percent of the business. 'It was really such short notice,' he told the San Francisco Chronicle. Although Republic National continues to sell his wines in a handful other states, he will now need to find a new distributor in the Golden State. The company had only recently increased its presence in California when it purchased distributor Young's Market Co. in 2022. Industry analyst Impact Databank estimated Republic National made $2.8 billion in sales in California alone in 2022. But despite this success, Buehler told the outlet that the distributor consistently underperformed for him in terms of sales. 'I think I should have seen the writing on the wall,' he said. 'You lose these suppliers, and you're not attracting any new suppliers. Still, I had no idea that they were going to close up shop.' It comes after Republic National announced a 'strategic reinvestment' in its Texas operations in May, according to Global Drinks Intel. The company said the move would create around 100 jobs. 'We've taken a close look at where we are – and more importantly, where we need to be,' chief sales and execution officer Taylor Sommer said at the time. 'After listening to our associates, customers and supplier partners, one thing is clear: we need to strengthen our presence and performance in the market. 'Texas is a critical part of our foundation, and we're proud to reinvest here.'
Daily Mail
19-06-2025
- Business
- Daily Mail
Powerful alcohol distributor abruptly quits California as it takes stand over problems doing business in the state
The second largest alcohol distributor in the US has announced it is pulling out of California, blaming rising costs of doing business in the state. Texas-based Republic National Distributing has said that it will no longer do business in California after September 2. This has sent more than 2,500 drinks brands scrambling to find a new wholesaler and distributor in the state, which is famous in large part for its wine production. The departure of a wholesale giant from the largest wine market in the US is also a warning sign for an industry which is already struggling as Americans increasingly cut back on alcohol. Republic National, which is based in Grand Prairie, has not suggested that politics played a role in its decision to quit California. But the news may be resonating widely in part because of the narrative it presents that a Texas company wants nothing to do with California, the San Francisco Chronicle reported. President and CEO Bob Hendrickson said: 'This decision is driven by rising operational costs, industry headwinds, and supplier changes that made the market unsustainable.' He added that the company is 'using this moment to sharpen our focus and reinvest in the markets where we're best positioned to grow', naming Texas and Kentucky. It comes weeks after the distributor announced a 'strategic reinvestment' in its Texas operations. Several dozen of Republic National's crucial brands have defected in recent months to other distributors. This means the company no longer has the rights to sell popular spirits such as Jack Daniel's, Tito's and High Noon in California. While it is unclear why all the brands cut ties with the company, it is likely to have been a financial blow as many shifted distribution to a major rival, Reyes Beverage Group. Some workers have blamed executive mismanagement for the company's departure from California, according to specialist outlet VinePair. 'They started focusing on numbers instead of customer satisfaction and that's what drove them to their fall,' an anonymous California-based worker told the outlet. A former worker claimed the the company was 'terribly run' and its execs were 'in over their heads' in the Golden State. They alleged executives from Texas did not get out to meet customers or 'learn the market.' John Buehler, owner of Napa Valley's Buehler Vineyards, said Republic National's departure from California 'left everybody in the lurch.' Wholesale purchases drive 80 percent of the business. 'It was really such short notice,' he told the San Francisco Chronicle. Although Republic National continues to sell his wines in a handful other states, he will now need to find a new distributor in the Golden State. The company had only recently increased its presence in California when it purchased distributor Young's Market Co. in 2022. Industry analyst Impact Databank estimated Republic National made $2.8 billion in sales in California alone in 2022. But despite this success, Buehler told the outlet that the distributor consistently underperformed for him in terms of sales. 'I think I should have seen the writing on the wall,' he said. 'You lose these suppliers, and you're not attracting any new suppliers. Still, I had no idea that they were going to close up shop.' It comes after Republic National announced a 'strategic reinvestment' in its Texas operations in May, according to Global Drinks Intel. The company said the move would create around 100 jobs. 'We've taken a close look at where we are – and more importantly, where we need to be,' chief sales and execution officer Taylor Sommer said at the time. 'After listening to our associates, customers and supplier partners, one thing is clear: we need to strengthen our presence and performance in the market. 'Texas is a critical part of our foundation, and we're proud to reinvest here.'
