Another major spirits supplier is shifting its California distribution to Reyes Beverage Group following the planned exit of Republic National Distributing Company (RNDC) from the Golden State later this year.
LALO Spirits and Reyes announced today a new distribution partnership in California, effective late July 2025.
“We are thrilled to partner with Reyes Beverage Group in the key market of California,” said Jim McDermott, co-founder and co-CEO of LALO Spirits, in a release. “With their recent investments and commitment to growth in this space, we believe they are the ideal partner to help us bring exceptional tequila to a broader audience. California represents roughly 20% of the nation’s tequila sales, and we’re excited to connect with more customers in this dynamic market.”
The move follows an exodus of other spirits brands from RNDC in California and nationally, and the subsequent planned withdrawal from the state by the distributor on September 1. The closure has left hundreds of suppliers scrambling for new wholesale suppliers. Several prominent wine groups have announced their next moves, but LALO is among the first major spirit suppliers to publicly announce its plans.
The tequila brand now joins several other spirit companies moving over to the total beverage distributor. Reyes has distributed Brown-Forman’s Jack Daniel’s & Coca-Cola ready-to-drink (RTD) in California since its launch in 2022, and nabbed the whiskey giant’s entire portfolio last month. High Noon and Tito’s also moved to Reyes in California.
Moving to Reyes, a traditional beer distributor, is likely attracting RTD brands for its connection to the convenience channel and command over cold boxes. Reyes, the largest beer distributor in the country, has been steadily growing its spirits and RTD portfolio, including with Sazerac’s recent BuzzBallz acquisition. The distributor has been gobbling up smaller beer distributors across California since 2018.
With Lalo, Tito’s and Brown-Forman now joining the California portfolio, Reyes has an opportunity to slide deeper into spirits, but it remains to be seen how it will transition from stocking the cold box to servicing on-premise spirits accounts.
“We have invested heavily in our California market across our people, facilities and portfolio so that we can continue to lean into our position as a total beverage distributor and partner with suppliers, like LALO Tequila, to connect customers, consumers and brands every day, everywhere we operate,” said Tom Reyes, president of Reyes Beverage Group West in a release.
LALO spirits – the blanco-only tequila brand from Don Julio’s grandson and his childhood friend – has been on a fast trajectory since its launch in 2017. The company was named one of the fastest-growing spirits brands in May 2024 by Nielsen, and is often compared to Tito’s for sticking to making one SKU and leveraging the simplicity of its ingredients in its marketing (the company was one of the first tequilas to heavily boast additive-free status).
The company released its first innovation, a high-proof tequila, last year. In 2023, the brand went national with Republic National Distributing Company (RNDC), expanding into 39 markets.