Inside Jackson Wine: Navigating Distribution Changes and Growing NBA/WNBA Partnerships

Republic National Distributing Co.’s departure from California on August 1 has caused significant disruption in the state’s alcohol sales industry, leaving numerous beer, wine, and spirits brands without a distributor. This exit has opened doors for companies like Jackson Family Wines’ Regal Wine Company, which has swiftly adapted to the changing landscape.

Since the transition, Regal has expanded its portfolio by adding 11 new suppliers, including its first spirits brand, Flor de Caña, positioning itself to capture a larger market share. Regal’s partnerships with the NBA and WNBA, particularly with teams like the Golden State Warriors and Sacramento Kings, have also yielded substantial returns, attracting a younger consumer base—up to one-third of whom are new to the brands.

In a recent interview, Brent Bolding, Jackson’s senior vice president of sales, operations, and strategy, alongside Kristen Reitzell, the senior vice president of marketing and communications, discussed how Regal is managing the upheaval in distribution, broadening its offerings, and targeting younger consumers in this evolving market.

Insights from Regal’s Strategy:

• Industry Trends and Consolidation: Bolding noted that the consolidation of distributors has made it difficult for smaller producers to gain visibility, opening opportunities for mid-tier distributors like Regal to focus on underrepresented brands.

• Growth in Supplier Representation: Regal previously represented around eight suppliers with about 300 brands. In contrast, it now represents over 100 suppliers after the addition of new ones, reflecting a commitment to carefully curating its offerings.

• COVID-19 Impact on Accounts: Bolding explained that the pandemic had caused some attrition among accounts, but totals are nearing pre-pandemic figures, despite a trend of reduced wine lists in restaurants.

• Sales Strategy: Regal positions itself as a consultative partner rather than merely a supplier, tailoring wine selections based on individual account needs to enhance customer satisfaction.

• Partnerships’ Impact: The partnership with the NBA and WNBA has created meaningful consumer engagement, with new buyers now comprising a significant portion of Kendall-Jackson’s sales, indicating a shift towards younger, more diverse demographics.

• Emerging Trends: Both executives mentioned a rising interest in low- and no-alcohol wines and alternative packaging methods, such as cans, to appeal to the changing preferences of consumers.

Despite the challenges posed by rising operational costs, Regal maintains a focus on storytelling and quality, ensuring that consumers perceive value in their products. As the company continues to grow, it remains committed to navigating the evolving landscape of California’s wine distribution and reaching new consumers through innovative strategies.

For further details on this evolving story, visit North Bay Business Journal.

About the Author: Chris Lehoux

Meet Chris Lehoux, an experienced wine connoisseur and dedicated blogger with a deep passion for all things wine-related. With years of expertise in the industry, Chris shares insightful wine reviews, valuable wine tasting tips, expert pairing advice, and captivating tales of vineyard visits. Join Chris on a journey through the world of wine, where every sip is an adventure waiting to be savored!