Wineries NAICS 312130

Jun 29, 2025 - Major Distributor Exiting California

• Republic National Distributing Company (RNDC) has announced it is exiting California at the beginning of September, leaving thousands of wineries scrambling, Meininger’s International reported in June. The departure of the nation's second-largest wine-and-spirits distributor from California means US and foreign wineries will be left without a route to market in one of the most important wine markets in the world, according to Meininger’s. California law requires wineries to go through a wholesaler to sell their products to retailers and restaurants, while wineries in California are allowed limited self-distribution. The CEO of the Texas-based distributor said the decision to leave California was “driven by rising operational costs, industry headwinds, and supplier changes that made the market unsustainable.” RNDC’s departure from the Golden State means that wineries contracting with the company must now find new wholesalers in an historically depressed wine market.
• Canadians are boycotting US wine in retaliation for President Trump’s tariffs and taunts about making Canada “the 51st state,” NBC News reports. Canada in March removed all US-made wine and alcohol from liquor/wine store shelves and from restaurants across the country. The boycott, which began in Ontario and has spread to Canada’s other provinces, is another blow to the US wine industry already hobbled by declining consumption and competition from alternatives. “Canada is the single most important export market for US wines with retail sales in excess of $1.1 billion annually,” Robert Koch, the California Wine Institute’s CEO, said in a statement. Moreover, tariffs on imports from Europe and China are raising costs for inputs, including bottles, barrels, and corks, making it even harder for wineries to stay in business. Canadian tourists are also boycotting America, reducing traffic to tasting rooms.

• Shifting population demographics, consumer trends, and a surplus of wine grapes are among the headwinds facing the struggling wine industry, which is responding with layoffs and winery closings, The Independent reported in February. Bronco Wine Company – the California winemaker behind retailer Trader Joe’s bargain wine brand Charles Shaw (aka Two Buck Chuck) laid off 81 employees at its winery in Stanislaus County, in April, SF Gate reports. In a WARN notice the company said the layoffs were “part of a strategic restructuring plan to enhance operational efficiency and adapt to the challenging headwinds in the wine industry.” Bronco isn’t the only winery impacted by the decline in wine consumption. According to The Independent, wine makers across the world are feeling the effects, with at least three California wineries — Carlisle, Edmunds St. John, and Vinca Minor – all announcing closures.
• Producer prices for wineries were flat in May compared to a year ago after inching up 0.7% in the previous May-versus-May annual comparison, according to the latest US Bureau of Labor Statistics data. Wineries lack pricing power due to weak demand and a multiyear slide in sales. At the retail level, the average cost per liter of wine in the US has been falling since mid-2021, according to Federal Reserve data. In 2024, US wine sales declined 6.3% from 2023, according to the industry data group SipSource. Meanwhile, employment grew 6.7% year over year in April to a new high for the month, per the BLS.