Anheuser-Busch InBev (A-B) is shaking up its distribution network for its spirits-based, ready-to-drink (RTD) cocktail brands.
The moves are concentrated in California, where A-B told Republic National Distributing Company (RNDC) it would move the Cutwater Spirits RTD family to Southern Glazer’s Wine and Spirits (SGWS). Vodka-based seltzer NÜTRL will also make the move to SGWS, predominantly transitioning from A-B’s primary beer distribution network.
SGWS will also begin selling the brands in about 12 control states and Hawaii.
“We are confident that the decision to transition our spirits-based brand distribution rights to Southern Glazer’s in California, Hawaii and some control states will strengthen our spirits-based brands in key markets and help accelerate our overall commercial momentum,” an A-B spokesperson told Brewbound.
None of A-B’s beer brands are involved in any distribution changes. Control states where SGWS will begin selling Cutwater and NÜTRL include Alabama, Idaho, Maine, Michigan, Mississippi, Montana, New Hampshire, North Carolina, Ohio, Vermont, Virginia and Wyoming, according to a report from Beer Marketer’s Insights.
Cutwater’s termination is the latest in a string of losses for RNDC in California, following the exits of High Noon, the Brown-Forman portfolio and top-selling spirit brand Tito’s Vodka this year and Sazerac in 2023. Former RNDC CEO Nick Mehall also resigned this year after Tito’s announced its departure.
Most spirits brands leaving RNDC in California have gone to the Reyes Beverage Group (RBG), which carries most of A-B’s beer category competitors.
A-B acquired Cutwater Spirits in 2019, three years after it was founded by former Ballast Point executives. Its RTD brand family has become the 21st largest in the spirits category, according to NIQ data analyzed by 3 Tier Beverages.
For the 52-week period ending April 19, Cutwater’s dollar sales and volume have increased 22.8% and 21.3%, respectively, (Total US xAOC + liquor open state + convenience). Cutwater has a category weighted distribution (CWD) rate of 59.2%, giving the brand plenty of runway.
NÜTRL, a Canadian-born brand that A-B rolled out in the U.S. in 2021, is the 49th largest spirits brand in off-premise retailers tracked by NIQ (Total US xAOC + liquor open state + convenience) for the 52-week period ending April 19. The brand has posted double-digit growth in dollars (+36.1%) and volume (+33.5), according to NIQ data analyzed by 3 Tier Beverages. NÜTRL’s CWD is 33.5%.
BevNET spirits editor Ferron Salniker contributed to this report.