Treasury Wine Estates (TWE) has been notified by Republic National Distributing Company (RNDC), one of its US distributors, that it will cease operation in California in September.
RNDC and TWE’s distribution contract spans 25 states across the US, and the distributor has reassured TWE of its commitment to continue investing in and driving the company’s portfolio in the remaining 24 states.
The closure is not expected to impact TWE’s financial results for the year.
TWE’s expected EBIT is now at $770 million, down from its previous outlook of approximately $780 million, due to lower-than-expected Premium portfolio shipments in the US, following economic uncertainty that led to weakened consumer demand.
TWE stated that it was well-positioned to find an appropriate distribution channel in California, given its history of working with various US distributors over the years.
