Treasury Wine Estates has reached a settlement with US distributor, Republic National Distributing Company (RNDC), relating to the closure of RNDC’s California operations in September 2025. The agreement is expected to result in a net cash outflow of roughly $91.8 million (US$65 million) in the second half of FY26.
Under the settlement, TWE’s US subsidiary will repurchase Treasury Americas and Treasury Collective inventory held by RNDC in California at its original sale value, net of a confidential compensation settlement to TWE for the impact of RNDC’s exit from the state.
The expected net cash outflow reflects the planned on-sale of the repurchased inventory to other customers commencing in the current half.
TWE said the settlement does not change its previously disclosed plan to reduce distributor inventory levels outside California over an approximately two-year period.
CEO Sam Fischer said the resolution brings clarity following a challenging period in California.
“Although RNDC’s decision to exit the Californian market had a significant impact on our performance in 1H26, we are pleased to have reached this resolution with RNDC, who remain a committed and high performing partner for TWE across a number of other US markets,” Fischer said.
TWE will continue to partner with RNDC across a number of other US markets and said it supports RNDC’s recent initiatives to strengthen its business model and capital structure, including the planned divestment of several markets to Reyes Beverage Group and the establishment of new financing arrangements.
Following these changes, RNDC is expected to account for less than 20 per cent of Treasury Americas’ net sales revenue. In the first half of FY26, Treasury Americas depletions in RNDC-distributed states increased by 2.7 per cent.
Earnings update
TWE also provided an update on earnings, confirming it expects 1H26 EBITS of approximately $236 million, above the $225–$235 million guidance range issued in December, subject to finalisation of the auditor review.
Further detail will be provided with the company’s interim results on 16 February 2026 .
