California Deep Dive: Why Is Spirits Consumption Falling? + Why the RNDC and Southern Settlement with Provi Matters for Craft Distillers
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May 15, 2025

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AB-InBev Pulls Cutwater from RNDC Distribution Network

Anheuser-Busch InBev has removed its Cutwater canned cocktail brand, the nation's second-largest spirits-based RTD portfolio, from Republic National Distributing Co. (RNDC) in California, Hawaii, and select control states. The company transferred these distribution rights to Southern Glazer's, impacting Cutwater's home market of California, where the brand commands a strong market share.


This marks another major account loss for RNDC in 2025, following similar exits by Tito's Vodka, Brown-Forman, and Gallo's High Noon (the top spirits brand by volume in the U.S.). These departures triggered leadership changes at RNDC, including a change at CEO in February.


An AB-InBev spokesperson stated the transition "will strengthen our spirits-based brands in key markets and help accelerate our overall commercial momentum."

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Italian sparkling wine volumes in the U.S. grew at a CAGR of +5% between 2018 and 2023, and are set to expand at a CAGR of +4% between 2023 and 2028.

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