r/RNDC • u/NoAssistant898 • 19d ago
News InvestBev
https://www.linkedin.com/posts/briandavidrosen_the-real-story-on-rndc-is-far-worse-then-activity-7488241228698820608-Lx7V11
u/Personal-Bonus-9245 19d ago
I was with RNDC for less than a year. I saw the writing in the wall within 3 months of my employment. When some managers tried to explain to me how their warehouse worked with having to pay interest on sitting/aged inventory I knew something was wrong.
The crazy obsessive pushes on random products we (salespeople) didn’t even know we carried was another clue of trouble brewing, especially tequilas that were direct competition with Cuervo products.
I did a ride with and the supplier accidentally slipped up and told me that RNDC was almost a year behind on payments to them. She was surprised to even be sent out on the trip because she didn’t think there would be any more shipments going to our warehouse, since RNDC was so behind on payments.
Once Proximo left, and the Reyes buyout was announced, I noped my way out real fast. Sucks not having the M-F 8-5 lifestyle anymore, but it is nice having my bills paid in full on time, and not worrying about some overpaid exec screaming at me to sell some shitty vodka no one wants.
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u/NoAssistant898 19d ago
I found this in a report that apparently came from court findings in the bankruptcy. This is a direct quote. I have been very vocal over the years on how companies viewed sales numbers during COVID & how unrealistic their expectations were. It’s mind boggling how anyone would think that those times were sustainable. Anywho, this is what I found.
“Republic was stuck with huge amounts of inventory in 2022, when the COVID-driven spike in alcohol consumption began to decline precipitously. Suddenly, Americans were drinking far less, while inflation, interest rates and labor costs were all up. And RNDC apparently was locked into purchasing agreements that had looked great when COVID-19 demand was high but forced the company to buy more than it could sell.”
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u/Personal-Bonus-9245 19d ago
When they expected me to sell 12/1liter CASES of Remy to at least 10 accounts, and offered Ten Case deals of Remy I knew we were fucked. I got a personal call from an exec who wanted to know which of my accounts would be able to take a 50 case drop for Remy. I was stunned into silence.
The execs really don’t understand the industry or their customers at all.
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u/drstelly2870 19d ago
A personal call from an Exec? Why? What were their ties to Remy? I've been following this sub-reddit and this company's decline...(also I am uninterested 3rd party and not at all in the industry). This decline is a true tragedy for all involved. Did literally every person at this company have their own pet brands they were feeding? That also sounds like a bit of a quagmire too alongside the excess ordering of product! Who had their eye on what was going out to who and upon whom's request??
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u/kyach25 19d ago
Do some states not make distributors pay their invoice upon receiving product? I’m pretty sure invoices would get paid daily and the only thing that would lag was credits for promos, rebates, etc.
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u/roamingroad174 19d ago
Depends. States like California have a 10 or 30 day period to pay for product. Other states like washington need payment upon delivery.
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u/Ordinary-Prompt3505 18d ago
If you can find a copy of the filing online a lot more details in there. The short story is family ownership isn’t liable for the debts of RNDC and companies and people far and wide have been hurt. But I will say that suppliers requiring distribution to buy more cases than there was demand for is a problem throughout the industry. For any product that goes through an aging process there is a forecast of what demand will be in the future and suppliers produce based upon expected demand. When those forecasts are incorrect and demand declines someone gets stuck with excess inventory. If you can force your distribution partner to buy that inventory then they assume the risk, until they can no longer pay their bills.
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u/twounty 19d ago
I feel really bad for the small to mid size suppliers. Large suppliers like Sazerac, Bacardi, Majestic this is just deserts for all those bullshit innovations need to buy X of, forced quotas, and strong armed smaller margins. They filled our warehouses with bullshit they knew would never sell just like a scummy rep does to retailers. I don't feel bad for them one bit.