Welcome back to the BevNET spirits newsletter! This week we’re digging into the hot news of the week and chatting with former Republic National Distributing Company (RNDC) suppliers in California about the questions they’re facing.

What insiders are reading: Check out why a well-known distiller thinks the time is right for her THC cocktail and how Blake Lively’s Betty Booze is getting into the hard tea race.

Thanks for reading.

-BevNET spirits editor, Ferron Salniker

This week we saw the culmination of a major supplier exodus from RNDC’s California book, leaving the company with no path forward in the biggest spirits market in the country. That’s a lot to unpack, but for the purpose of this quick hit to your inbox we’re checking in with brands on the ground about their next moves. 

“We are in no rush to make brash decisions here,” said Mallory Patton, co-founder of Saint Spritz. The RTD brand has expanded fast, going from DTC and Texas distribution to 40 states in six months. With key placements in the state at Target, Walmart, and Total Wine, all of which they can fulfill warehouse direct, Patton says RNDC’s withdrawal won’t impact its business much. Of course for other brands looking to scale, there may be more competition to get into the remaining distributors that can service major chain accounts in a chain-driven marketplace.

Saint Spritz already works with a hodgepodge of distributors including Johnson Brothers, RNDC, and select Molson Coors houses – one of those MC houses paved the way for the RTD brand in Texas, while the wine and spirits network helped the company to scale fast and pull off a national launch quickly. 

As RTD leaders like Cutwater and High Noon shift to beer distributors, smaller RTD brands  in those books (new arrivals or otherwise) are now going to need to compete even more for attention. Patton doesn’t seem worried, sticking to an “all ships rise together” mantra. Plus, carrying a higher margin than most other RTDs is a “good proposition” for a distributor. 

Meanwhile, Nosotros Tequila and Mezcal, which was one of the largest self-distributed brands in California before it nabbed a statewide partnership with RNDC in 2022, also doesn’t have a clear roadmap yet but is leaning on its “internal structure to navigate this” and make sure all of its partner accounts continue to receive “top level service,” said CEO Carlos Soto.

The responses from Nosotros and Saint Spritz underscore what’s been important for the past decade or so when talking about distribution. Wherever these brands go next, “my inclination is that no one is going to build your brand for you: that's up to your team,” said Patton. 

Stay tuned for more on the site tomorrow about the shakeup.

Twenty years after helping establish the adult non-alcoholic (ANA) category with DRY Soda, founder Sharelle Klaus is going from alcohol-free “botanical bubblies” to a low-ABV gin called Second Sip. No stranger to still enjoying a cocktail, Klaus wanted to bring a martini-ready gin to market that would allow her to “drink twice as much” without overindulging. The “low” end of the moderation category is even less developed than the still-nascent alcohol-free spirits set, but a small group of brands are working to educate consumers that premium, low-ABV options go beyond aperitifs and liqueurs. Read the full story.

In this month’s distribution news, Mission Craft Cocktails reaches a major milestone, RTD Carbliss continues its push through the Midwest, and a spirits veteran makes a big play, and more.

David “Big Papi” Ortiz may be a baseball Hall of Famer and a three-time World Series champion. But can he live up to his own standards for greatness on the field of the spirits business? The former Boston Red Sox All-Star is the founder of a new brand of “ultra-premium” rums, Ozama Rum, produced in his home country of the Dominican Republic. Read our interview.

It’s ironic that there’s been a California-to-Texas exodus in recent years because, right now, THC-wise at least, they’re looking a lot alike. My colleague Jess Infante at Brewbound looked into how legislation in progress across several states aims to bring beverages infused with intoxicating hemp into regulatory frameworks akin to alcohol’s three-tier system. Read more.

As the tariff roller coaster continues, the volatility is making spirits companies reevaluate everything from pricing to supply chain to expansion. We spoke with the leaders of two independent spirit companies on the opposite end of the price spectrum to hear how they’ve attempted to navigate the fluid situation. Read the full story.

Some people have angels and devils on their shoulders; this week, our review team is seeing Little Saints and a Bad Mermaid, plus something that kind of rides the line down the middle: Crodino, a non-alcoholic bitter soda from spirits specialists Campari. Here’s our take on these adult non-alc additions. 

I never thought the piece of wisdom I would be passing down to younger generations is how to start a bar tab. As NYT talks to the youth about why they’re closing out after each drink (reasons include budget, moderation, that annoying wait at the end of the night), this may represent insight for brands: start at the basics when teaching young people how to imbibe. Read the piece.