A decline in public consumption of alcoholic drinks has been a major factor in declining revenue in the beer, wine, and spirits sectors, leading certain companies to file for bankruptcy protection.
128-year-old beer, wine, and spirits distributor, Republic National Distributing Company, was a major company affected as it filed for Chapter 11 bankruptcy protection, seeking going-concern sales of its remaining assets, a wind down of operations, completion of transition services agreements, and approval of its equity holder settlement.
National Distributing Company Inc. is not a part of the Chapter 11 filing, the company said in a statement on its website.
A company spokesperson was not immediately available for comment.
Republic National Distributing Company has been selling off its operations across the nation this year.Shutterstock
Republic National’s business decline
Republic National Distributing Company filed its petition as its business’s financial position deteriorated after the Covid-19 pandemic subsided in late 2022 and demand for off-premises alcohol consumption plummeted.
The company and other distributors had accumulated a significant amount of alcohol product during the pandemic and were left with excess inventory as alcohol demand returned to pre-pandemic levels.
Macroeconomic and industry headwinds, such as high interest rates and rising inflation, contributed to the economic issues. Distributors also faced an unexpected shift in consumer alcohol drinking, as adults either curtailed drinking alcohol or stopped altogether, according to court papers.
Alcohol consumption lowest in 90 years
Since 2022, alcohol consumption plummeted and the percentage of adults in the U.S. that report themselves as regular consumers of alcohol reached its lowest level in nearly 90 years, according to court papers.
The downturn impacted alcohol distributors’ revenue, as spirits supplier sales decreased by 2.2% to $36.4 billion in 2025, according to the Distilled Spirits Council of the United States.
Spirits company executives, however, are confident that the industry will persevere despite the economic decline.
“While total U.S. spirits sales edged down 2.2% in 2025, the spirits industry remains resilient, driven by innovative products that continue to spark consumer interest,” said Chris Swonger, CEO of the Distilled Spirits Council.
Company lost key suppliers
Compounding the company’s problems, from 2022 to 2025, Republic National Distributing lost several key suppliers that collectively generated more than $3 billion of the distributor’s annual revenue.
Despite establishing about 10 new or expanded supplier partnerships since 2023, macroeconomic factors and industry dynamics became insurmountable.
In addition to these problems, in early 2025, several of Republic National Distributing’s key suppliers switched to the company’s competitors, including Tito’s, Brown-Forman, and Gallo’s High Noon moving to Reyes Beverage Group.
“This decision was not made lightly. Over time, our industry has evolved, consumer preferences have shifted and the wholesale environment has grown increasingly challenging,” the company said in a statement.
“Over the last several months, we have taken deliberate steps to transition our operations across certain markets. We pursued and closed sales that preserved over 5,000 jobs and allowed our businesses in those markets to continue serving their customers and suppliers.
Where the company sold operations
Oregon sold to Columbia Distributing.
Washington sold to Columbia Distributing.
Arizona sold to Reyes Beverage Group.
Colorado sold to Reyes Beverage Group.
Florida sold to Reyes Beverage Group.
Louisiana sold to Reyes Beverage Group.
Maryland sold to Reyes Beverage Group.
Oklahoma sold to Reyes Beverage Group.
South Carolina sold to Reyes Beverage Group.
Texas sold to Reyes Beverage Group.
Virginia sold to Reyes Beverage Group.
Washington, D.C., Reyes Beverage Group.
Source: Court declaration.
“Ultimately, RNDC’s financial position required us to pursue an in-court process,” the statement said.
The Atlanta-based alcoholic beverage distributor and 17 affiliates filed their petition in the U.S. Bankruptcy Court for the Southern District of Texas in Houston on July 26, listing $500 million to $1 billion in assets and $1 billion to $10 billion in debts.
Republic National Distributing’s largest unsecured creditors include Proximo Spirits, owed over $93.9 million; Empower Annuity Insurance Company of America, owed over $62 million; First American Commercial Bancorp, owed over $47 million; Delicato Family Wines, owed over $14 million; Park Street Imports, owed over $13 million; and Meridian Park South Building, owed over $10 million.
Distributors buy rights in states
Republic National Distributing Company on June 30 closed on the sale of its Oregon and Washington state distribution rights to Columbia Distributing.
The company on May 29 also closed on the sale of its Arizona, Colorado, Florida, Louisiana, Maryland, Oklahoma, South Carolina, Texas, Virginia, and Washington, D.C., distribution operations to Reyes Beverage Group. The closing of a sale of its Hawaii operations is subject to certain regulatory approvals.
Republic National Distributing Company was founded in 1898 as N. Goldring Corporation in Pensacola, Fla., becoming the first licensed beer distributor in the state. The company eventually grew over the years to distributorships in 40 states and $12 billion in annual revenue.
The company’s overall sales were strong until 2023, when overall alcohol sales declined for the first year in almost three decades, according to a bankruptcy declaration by Chief Restructuring Officer John R. Castellano.
The downturn in the alcoholic beverage industry devastated another distributor as well as Colorado’s Eagle Rock Distributing Company shut down all operations on June 5, 2026, after selling its operation in that state to huge alcoholic beverage distributor Southern Glazer Wine & Spirits.
This story was originally published by TheStreet on Jul 28, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.
