Patco Brands, the manufacturer of one of the leading wine-based ready-to-drink (RTD) products and other private label brands, will move its California distribution to California Beverage Solution (CBS) August 1, the companies announced today.
The move comes amid Republic National Distributing Company (RNDC) winding down operations in the Golden State, shaking up the distribution landscape and leaving suppliers scattering to new wholesale partners. The majority of Patco Brands products were formerly distributed by RNDC.
CBS is an alliance among seven California beer and beverage distributors formed in 2023 to provide suppliers a nearly statewide network. The founding seven distributors include six independent Anheuser-Busch (A-B) distributors, along with one of the largest craft-focused distributors in the country, Hand Family Companies’ Sunset Distributing, which formed through the combination of Stone Distributing, Classic Beverage and last week’s deal for Scout Distribution in Los Angeles.
Patco Brands, a family-owned company that was founded in 2012 with a small tequila business, has grown into one of the largest producers of agave wine RTDs through its Rancho La Gloria brand. On the heels of Rancho La Gloria’s success, Patco (which also does business as MPL Brands) began to make private label products for retailers while growing a portfolio of its own brands such as Kyla Hard Kombucha and Big Sipz.
Patco initially partnered with CBS in 2024 to bring Big Sipz to market. Now, the companies will build on that partnership with CBS distributing Rancho La Gloria tequilas, Magaritas and canned products, as well as Cinnabomb whiskey, Doughball whiskey, Uno Mas RTD wine-based margaritas, Uno Mas tequilas and Super Sipz RTDs.
Rancho La Gloria is the third-best selling wine-based cocktail in the latest 52 weeks ending June 14 in NIQ off-premise channels, but sales have been losing ground to relative newcomers such as BuzzBallz and BeatBox.
“We are excited to bring RLG and the entire Patco portfolio to our partners at the CBS group,” said Russell Stanley, COO of Patco Brands, in a statement. “With a priority on service for our retailers, we couldn’t think of a better group to align with.”
CBS founding members include Advance Beverage Company, Donaghy Sales, Heimark Distribution, Markstein Sales Co., Matagrano, Pacific Beverage and Sunset Distribution.
The CBS alliance – originally formed to compete with larger, multistate wholesalers such as Reyes Beverage Group, Southern Glazer’s Wine & Spirits and Breakthru Beverage – now has one less competitor. Other RNDC suppliers with spirit brands and RTD beverages, such as Gallo’s High Noon and Brown-Forman, have shifted their distribution to Reyes.
At the close of last year, Patco Brands made a strategic investment in Farfield, California-based Frank-Lin Distillers Products, allowing Patco Brands to further vertically integrate as a full-service beverage company, according to Stanley.