Brown-Forman Shakes Up Decades-Old Distribution Network to Spur U.S. Growth

Brown-Forman, the spirits producer behind Jack Daniel’s and Herradura Tequila, has unveiled a sweeping overhaul of its U.S. distribution for the first time in over 60 years. The company announced on June 2 that it will appoint new distributors in 13 states as part of a “route-to-consumer” reset. Breakthru Beverage Group will become Brown-Forman’s largest partner, now handling 14 markets across the U.S. and Canada. Meanwhile, Republic National Distributing Co. (RNDC), historically one of Brown-Forman’s primary brokers, will see its load drastically reduced – from 23 states down to just 12 under the revamped plan.

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Executives say the bold moves were necessary to ignite growth in an American spirits market that has recently slowed for the company.

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“This is Brown-Forman’s first significant change to our U.S. route-to-consumer landscape in more than 60 years… we believe they will bring tremendous opportunities for growth in the years and decades to come,”

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said Robinson Brown IV, Brown-Forman’s managing director for North America. The Louisville-based distiller has seen sales pressure on its home turf, with U.S. net sales down 5% in the first nine months of its fiscal year. Brown-Forman has responded with broad efficiency measures – from selling non-core wine assets to cutting 600 jobs – aiming to refocus on its most profitable whiskey and Tequila brands‍.

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Strategic Insight: Brown-Forman’s distribution shake-up underscores the critical role that wholesalers play in brand performance. By diversifying its network across seven distributors (including Breakthru and several regionals), the company is seeking more tailored, market-by-market attention for its portfolio. The shifts come on the heels of intense competition among distributors: RNDC’s diminished role follows major suppliers like Brown-Forman opting to switch to other partners. For spirits brand owners, this realignment sends a clear message – even legacy arrangements aren’t sacred if they no longer maximize growth. Ensuring your distributor is the right strategic fit is paramount. Brown-Forman’s management framed the change as an “exciting evolution in our U.S. strategy” to elevate its premium spirits and reach consumers in new ways. Industry leaders will be watching closely to see if a more dynamic, multi-partner approach gives Brown-Forman a competitive edge. If successful, it could inspire other large suppliers to rethink long-standing one‑distributor per market models in favor of more agile distribution strategies that improve brand focus and execution at the local level.