US wine group The Duckhorn Portfolio has struck wholesale distribution deals with Republic National Distributing Company (RNDC) and Breakthru Beverage Group (BBG).
The Decoy brand owner said the goal of the deals is “driving the profitable growth of the company’s sales through a substantial increase in focus and investment in the wholesale channel”, according to a statement today (24 May).
RNDC and BBG will begin distributing Duckhorn’s wines this summer, as the wine group has undertaken a “comprehensive strategic evaluation of its wholesale distribution network across the US”.
Duckhorn revealed that it has worked with both distribution companies previously in certain states but the new deals will “significantly” expand the reach of the partnerships.
RNDC will distribute Duckhorn wines in 21 states, including New York, Oregon and Texas, while BBG will handle the products in ten states, such as Florida and Pennsylvania, as well as the District of Columbia.
“With the recent closing of our Sonoma-Cutrer acquisition, The Duckhorn Portfolio has grown in both scale and scope, and we are now the largest supplier of $15-plus wines in the off-premise channel in the US,” said Deirdre Mahlan, Duckhorn president and CEO.
“Acquiring Sonoma-Cutrer provided an excellent opportunity to evaluate and optimise our distributor network across the US to strengthen our ability to drive consistent profitable growth and increase shareholder value.”
Pete Przybylinski, executive vice president of Duckhorn, said the group has worked with both distributors “for decades” and the new deal means “greater focus and investment in our winery brands, broader reach and deeper market penetration”.
He added: “We see many benefits of these enhanced relationships, not only for us and our distributors, but most importantly, for our retail customers and consumers.”
The new deals come shortly after Mahlan was announced as permanent CEO and president of Duckhorn after she took the reins on an interim basis in September when Alex Ryan stepped down after 12 years at the helm.
Duckhorn also issued a set of “preliminary” sales figures for its third quarter. It said it expects its third-quarter net sales “on a preliminary and unreviewed basis” to be in the range of $91m to $93m (compared to the previous year’s third quarter, that would represent a quarter of flat to 2% sales growth).
