Treasury Wine picks new California distributor, warns financial impact 'uncertain'

The news: Australia's top winemaker Treasury Wine Estates has appointed North American drinks wholesaler Breakthru Beverage Group (BBG) as its exclusive distributor in California, starting 1 September.

The context: Treasury Wine announced last month that its current California distributor, Republic National Distributing Company (RNDC), would cease operating in the state from 2 September.

In the first half of the year, RNDC accounted for around 25% of Treasury Americas' net sales revenue and approximately 10% of the group's net sales revenue.

Penfolds owner Treasury Wine said BBG was selected as its new partner in California due to the "scale and breadth" of its distribution platform in the state. BBG is Treasury Wine's partner in a number of other US states, including Florida.