Another major alcohol distributor signals nearly 2,800 job cuts

Another major alcohol distributor signals nearly 2,800 job cuts

Aparajita Chatterjee

5 min read

Thousands of workers tied to one of America’s biggest alcohol distributors are now in limbo as a major industry deal moves closer to completion.

Layoffs and restructuring continue to ripple across the industry, from technology giants to consumer-facing sectors such as retail, wholesale, and health care.

According to the U.S. Bureau of Labor Statistics, both January and February saw around 1.7 million layoffs and discharges each, totaling over 3.3 million in the first two months alone.

Adding to the trend is a big name from the alcohol distribution industry, which, amid restructuring, finalizing potential deals with buyers, and bringing in new clients, also filed several new Worker Adjustment and Retraining Notification (WARN) filings in multiple states on April 23.

Republic National Distributing Company, or RNDC, one of the largest alcohol and beverage distributors in the U.S., has issued a wave of conditional WARN notices, as its pending transaction with Reyes Beverage Group nears completion.

So far, the filings total 2,774 potentially affected workers, according to public notices reviewed by TheStreet.

The notices come as RNDC reshapes operations after losing ground in key markets and pursuing a strategic agreement with Reyes that could transfer several state operations into a larger distribution network.

But RNDC says the notices are part of the transition process and do not automatically represent final employment decisions.

RNDC says many workers may continue

In a statement provided to TheStreet, RNDC said the deal continues to move forward.

“Republic National Distributing Company’s (RNDC) potential transaction with Reyes Beverage Group continues to progress and is on track to close as early as the end of May, subject to regulatory approvals and customary closing conditions.

“As part of this process, RNDC has issued conditional WARN notices to certain associates in impacted markets," the company added. "This is a step intended to provide advance notice and to comply with any potential legal requirements and does not represent final employment decisions.”

RNDC also said many workers may have opportunities to remain employed.

That means some affected workers could transition to Reyes, remain with RNDC temporarily, or move into retained roles, depending on final staffing decisions.

WARN notices hit workers across several states

Public filings show the current known total of 2,774 potentially affected workers across at least six states.

Florida accounts for the largest known concentration of notices so far, including:

Tampa: 393

Deerfield Beach: 363

Jacksonville: 169

Pensacola: 121

Other state filings include:

Virginia: Ashland, layoff via closure, impacting 428; layoff June 21.

South Carolina: West Columbia via facility closure, impacting 451; layoff July 5.

Colorado: Littleton, selling assets impacting 320; layoff on June 21.

Arizona: Phoenix, impacting 211.

Maryland: Stayton Drive, Jessup, mass layoff impacting 318; layoff on June 21.

Some notices describe permanent closures or layoffs with no recall rights, while others are tied to the pending Reyes transition and may not result in final job losses for every worker.

Most of the layoffs will take place within 14 days of June 21, 2026.

The company added in its filing that it understands that “Reyes or its affiliate intends to extend offers of employment to many of the Company’s employees at or reporting to the facilities included in the transaction, including the Facilities.”

However, there is no guarantee, and “employment discussions remain ongoing."

Most consumers recognize the alcohol brands they buy, but not the companies that move those bottles.

RNDC is one of the largest wholesale distributors of wine and spirits in the United States. It operates in the middle tier of the industry’s long-standing three-tier system:

Producers make alcohol.

Distributors warehouse, market, and transport products.

Retailers, bars, restaurants, and stadiums sell to consumers.

That means when someone buys tequila at a liquor store, wine at a restaurant, or bourbon at a sports venue, a company like RNDC often handles the logistics, warehousing, sales support, and delivery.

Earlier in January, RNDC revealed it had secured funding support from investors, helping it stabilize its business.

And soon after, in March,Reyes Beverage Group (RBG), a major RNDC competitor and another giant in beverage distribution, shared that it had entered into an agreement to purchase RNDC’s operations in Arizona, Colorado, Florida, Hawaii, Louisiana, Maryland, Oklahoma, South Carolina, Texas, Virginia, and Washington, DC.

Celebrating its 50th year, Reyes said that this agreement will mark the next chapter of its journey.

RBG said it will run this business separately from its current operations “as it onboards new team members and suppliers.”

RNDC's California exit signaled deeper problems

RNDC’s current restructuring follows a major change last year when it exited California, one of the most important alcohol markets in the country.

That move came after several large producers reportedly shifted their business to Reyes, weakening RNDC’s position in a state known for its population, tourism, restaurant demand, and premium spirits sales.

The California exit was widely viewed as a major turning point for the company.

To put it in context, when a major distributor leaves a market, it impacts not only employees but also suppliers that rely on established distribution relationships.

Meanwhile, even amid restructuring, RNDC continues to win supplier business.

In a recent announcement, Tequila Centinela expanded distribution through RNDC in Florida and Texas, suggesting suppliers still see value in the company’s network in major growth states.

Tequila Centinela noted that its 120-year legacy will be better marketed through RNDC’s “high-caliber network.”

“We’re able to thoughtfully grow our footprint in Texas and Florida — two priority markets with a strong appreciation for authenticity, heritage, and craftsmanship,” said Armando Gonzalex, VP and managing director of Centinela U.S.A.

This matters because distributor strength is heavily tied to the quality of brands it represents.

RNDC said the Reyes deal could close as early as the end of May, pending regulatory approvals and customary conditions. If completed, some WARN notices may ultimately lead to job transfers rather than permanent separations.

Still, the filings reveal how disruptive consolidation can be behind the scenes of the alcohol business.