Brown-Forman and Reyes Beverage Group Announce New California Distributor Partnership

Rhea-AI Summary

Brown-Forman (NYSE:BFA,BFB) has announced a new distribution partnership with Reyes Beverage Group (RBG) in California, effective May 1, 2025. The strategic decision follows a formal request for proposal process initiated in 2024 and aims to optimize growth in the largest U.S. spirits market.

RBG has been distributing Brown-Forman's Jack Daniel's & Coca-Cola Ready-to-Drink (RTD) cocktail in California since 2022. This new agreement expands the partnership to include Brown-Forman's full portfolio of legacy brands. The company currently distributes its remaining spirits in California through Republic National Distributing Company (RNDC), with whom they maintain partnerships across 23 other states.

Positive

• Strategic expansion in the largest U.S. spirits market
• Partnership with established distributor having proven track record in California
• Optimization of distribution network for long-term growth

Negative

• None.

Insights

Distribution Strategy Analyst

This strategic distribution partnership marks a pivotal shift in Brown-Forman's route-to-market strategy in California, the nation's largest spirits market. The selection of Reyes Beverage Group demonstrates a calculated move to leverage their proven operational excellence and existing success with the Jack Daniel's & Coca-Cola RTD line.

The timing and execution of this transition are particularly noteworthy. By announcing the change over two months before the May 1 implementation date, Brown-Forman allows for a methodical transition that minimizes disruption to their supply chain. This approach reflects sophisticated change management in distribution logistics.

The strategic implications are multifaceted:

• Reyes' established infrastructure and deep market knowledge in California provides Brown-Forman with enhanced distribution capabilities and potential cost efficiencies
• The consolidation of RTD and spirits distribution under one partner streamlines operations and creates opportunities for coordinated market strategies
• The maintenance of RNDC partnerships in 23 other states indicates a market-specific optimization strategy rather than a wholesale shift in distribution philosophy

The partnership's focus on California specifically suggests Brown-Forman is adopting a more granular approach to market development, recognizing that different regions may require different distribution solutions to maximize growth potential. This move could serve as a template for future market-specific distribution optimizations across their national network.

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Brown-Forman Corporation (NYSE:BFA,BFB) and Reyes Beverage Group (RBG) are pleased to announce a new distribution partnership in California, effective May 1, 2025. This strategic decision underscores the companies' commitment to growth and innovation in the largest spirits market in the U.S.

“We are incredibly excited to expand our distribution partnership with Reyes Beverage Group in California,” said Michael Masick, executive vice president and president, Americas, Brown-Forman. “As we strive to continue to grow our business, optimizing our routes to market is critical. After careful consideration, including a formal request for proposal process that began in 2024, we’re confident that Reyes Beverage Group is the ideal partner to help us achieve our ambitious growth objectives in this key market.”

Robinson Brown IV, senior vice president and managing director, USA & Canada, Brown-Forman added: “Reyes Beverage Group’s elite execution and operational excellence, demonstrated by their impressive track record in California with legacy beer and spirit supplier partnerships, including our Jack Daniel’s & Coca-Cola Ready-to-Drink (RTD) cocktail, makes them a natural fit for Brown-Forman.”

“We are thrilled to continue building our relationship with Brown-Forman and represent their full portfolio of legacy brands, led by the world-renowned Jack Daniel’s, in California,” said Tom Day, Chief Executive Officer for Reyes Beverage Group. “This partnership represents a significant opportunity for Reyes Beverage Group to further our position as a total beverage distributor and leverage our deep market knowledge and industry expertise to drive growth for Brown-Forman. We are confident that our combined strengths and shared values will create a powerful synergy, delivering exceptional results for both companies.”

This expanded partnership reflects Brown-Forman’s ongoing commitment to evolving its distribution network to ensure long-term success in the U.S. The company recognizes the dynamic landscape of the beverage alcohol industry and is proactively adapting to capitalize on new opportunities.

Reyes Beverage Group has been a strong Brown-Forman partner, supporting its Jack Daniel’s & Coca-Cola RTD in California since 2022. Brown-Forman currently distributes its remaining spirits in California through Republic National Distributing Company (RNDC).

“We are grateful for the many years of partnership with RNDC in California and deeply appreciate their contributions to our business in this important market,” continued Brown. “We value the relationships we’ve built with RNDC, including throughout the 23 other states where we work together, and we appreciate their continued partnership and focus on our shared success.”

About Brown-Forman:

Brown-Forman Corporation has been building exceptional spirits brands for more than 150 years, responsibly upholding our founding promise of “Nothing Better in the Market.” Our portfolio of premium brands includes the Jack Daniel’s Family of Brands, Woodford Reserve, Herradura, el Jimador, Korbel, New Mix, Old Forester, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Chambord, Gin Mare, Fords Gin, Slane, and Coopers’ Craft. With a team of approximately 5,400 employees worldwide, we proudly share our passion for premium beverages in more than 170 countries. Discover more about us at brown-forman.com and stay connected through LinkedIn, Instagram, and X.

About Reyes Beverage Group:

Reyes Beverage Group (RBG) is dedicated to being the best distributor in the industry with distributorships in California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, South Carolina, Tennessee, Texas, Virginia and Washington, D.C. RBG is committed to protecting the quality of its brewing and distilling suppliers’ brands through the utilization of superior routing and world-class warehouse and cold storage facilities, while also using its highly trained sales team to grow those brands and best serve the retail customers of Allied Beverages, Capital Reyes Distributing, Chesbay Distributing, Chicago Beverage Systems, Crest Beverage, DET Beverages, Florida Distributing Company, Gate City Beverage, Gold Coast Beverage, Golden Brands, Greenco Distributing, Harbor Distributing, High Desert Distributing, Island Distributing, Lee Distributors, Monarch Distributing, Premium Distributors of Maryland, Premium Distributors of Michigan, Premium Distributors of Virginia and Premium Distributors of Washington, D.C. Across 54 facilities, our team of over 9,300 people delivers over 320 million cases annually to over 115,000 retail accounts across the nation. For more information on the company, its portfolio of world-class beer and spirits brands and career opportunities, explore the company’s website at www.reyesbeveragegroup.com.

Forward-Looking Statements

This press release contains statements that are “forward-looking statements” as defined under U.S. federal securities laws. These forward-looking statements reflect management’s expectations or projections regarding future events and speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections.

For further information on factors that could cause our actual results to differ materially from our historical experience or from our current expectations or projections, please refer to our public filings, including the “Risk Factors” section of our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250224282718/en/

Brown-Forman Contacts:

Elizabeth Conway, Director, External Communications

elizabeth_conway@b-f.com; 502-774-7737

Sue Perram, VP, Investor Relations

sue_perram@b-f.com; 502-774-6862

Reyes Beverage Group Contact:

Laurel Slick, VP, Corporate Affairs

corporaterelations@reyesholdings.com; 847-916-1193

Source: Brown-Forman Corporation

FAQ

When will Brown-Forman's new California distribution partnership with Reyes Beverage Group begin?

The new distribution partnership will become effective on May 1, 2025.

What is the scope of Brown-Forman's new distribution agreement with Reyes Beverage Group?

The agreement covers Brown-Forman's full portfolio of legacy brands, including the Jack Daniel's brand family, in California.

How long has Reyes Beverage Group been distributing Brown-Forman products in California?

RBG has been distributing Brown-Forman's Jack Daniel's & Coca-Cola Ready-to-Drink (RTD) cocktail in California since 2022.

Who is Brown-Forman's current spirits distributor in California?

Brown-Forman currently distributes its spirits in California through Republic National Distributing Company (RNDC).

How many states does Brown-Forman maintain distribution partnerships with RNDC?

Brown-Forman maintains distribution partnerships with RNDC across 23 states, excluding California after the new agreement takes effect.