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State Liquor Distributor Asks Temporary Pause in Delivering Orders This Week to Improve System Operations

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Lansing, Mich. – Republic National Distributing Company (RNDC), one of Michigan’s major distribution agents handling liquor and wine warehousing and delivery to local retailers, today announced that customers with standard delivery dates of Wednesday, Nov. 13, Thursday Nov. 14 and Friday Nov. 15 will not receive their orders.

Those customers will need to reorder on their usual order day starting the week of Nov. 17. Upper Peninsula customers will not be impacted by this change and should expect deliveries as usual.

This move is part of an overall plan to allow RNDC to catch up previously delayed deliveries and implement a number of operational changes at its new Livonia facility.

The company briefed the Michigan Liquor Control Commission at its meeting in Lansing today, detailing to commission members steps it is taking to address problems that have developed since mid-October.

In addition to the order pause, the company said it will be moving about 20 percent of its inventory back to a facility in Brownstown, which it previously used. The two actions, combined with a number of other steps under way, are intended to restore normal service delivery around the state as quickly as possible, with significant improvements expected by Nov. 18, and a goal of normal delivery by mid-December, said Joe Gigliotti, Region President of Control States for RNDC.

Gigliotti apologized to the commission for the service delivery failures, which are attributable to the company’s consolidation of operations from facilities in Grand Rapids and Brownstown (in downriver Wayne County) to an $85 million state-of-the-art facility in Livonia.

“It saddens me that we are disappointing the commission, our customers, our suppliers and our RNDC associates. This clearly is not what RNDC represents or how we do business,” Gigliotti said.

RNDC acknowledged that the delivery delay will be a major problem for some of its customers. It noted that the company will continue delivering backlogged orders through Saturday, Nov. 16. It also is telling customers that will calls will not be accepted during the Nov. 13-15 period.

Delivery delays are running three or four days behind schedule in part of the state. A major fiber optic cut in the Livonia area last week, this week’s unusual weather and additional software issues on Tuesday night cause the company to take the unprecedented step of asking customers to hold their orders for three days.

“We know the decision to pause will create significant problems for some of our customers. We are not making this decision lightly. We are not happy about this. But we believe the sooner we can get all of these matters addressed without having to accept deliver the new orders, the sooner we can get back to providing our normal high level of service,” Gigliotti said.

“RNDC wants to apologize to you and to our customers and suppliers,” Gigliotti told the commission. “This new plan is vital to serving the needs of our customers, suppliers and the state.”

Customers with questions about an order of any kind are asked to email RNDC at miservice@rndc-USA.com. Questions about delivery can be emailed at miorders@rndc-USA.com.

Using the email addresses will allow RNDC to more quickly research the issue involved and return information to the customer quickly. Phone service will still be available at 888-697-6424.

About Republic National Distributing Company

RNDC, a world-class distributor of fine wines and spirits in North America, has operations in Alabama, Arizona, Colorado, District of Columbia, Florida, Georgia, Indiana, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Nebraska, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Virginia, and West Virginia. Young’s Market Company, a partner of RNDC, distributes wines, spirits, and select beverages in the western United States including Alaska, California, Hawaii, Idaho, Montana, Oregon, Utah, Washington, and Wyoming. Visit www.RNDC-USA.com or www.youngsmarket.com.

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