Treasury Wine Estates said its U.S. subsidiary reached a settlement with Republic National Distributing Co. arising from RNDC's closure of its California operations last September.

As part of the settlement agreement, TWE will repurchase Treasury Americas and Treasury Collective portfolio inventory held by RNDC in California for its original sale value net of a confidential settlement that compensates TWE for the impact of RNDC’s closure in the state.

Taking account of the expected on-sale of this inventory to other customers, commencing this half, the net cash outflow in the fiscal 2026 second half relating to this settlement agreement is expected to be about US$65m1.

TWE will continue to partner with RNDC to distribute its portfolio across a number of other US markets and is supportive of RNDC’s recent initiatives to strengthen their business model and capital structure, including the planned divestment of several markets to Reyes Beverage Group and the establishment of new financing arrangements.

In the fiscal first half, Treasury Americas depletions in states distributed by RNDC grew 2.7%. The settlement does not alter the planned reduction of distributor inventory levels outside of California over about two years, as disclosed on Dec. 17, 2025, the company said.

TWE CEO Sam Fischer said, “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.”