Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTPeace LongeTue, August 4, 2026 at 8:03 PM GMT+2 6 min readWhen a company that moves the bulk of its products to store shelves runs out of cash, there's likely to be a serious disruption to business. Bottles stall in warehouses, orders turn unpredictable, and sales can vanish.MGP Ingredients (MGPI) saw that risk coming, moved quickly, and is starting to see the payoff.The Atchison, Kansas distiller owns Penelope Bourbon, Remus, Yellowstone, and El Mayortequila under its Luxco arm. For years, part of its retail route ran through one of the largest wine-and-spirits distributors in the country: Republic National Distributing Company.That distributor is now bankrupt.What MGP did in the months before the filing to minimize losses is important.MGP Ingredients turned a distributor's collapse into a head startRepublic National Distributing Company was once the second-largest wine and spirits distributor in the United States. For years, RNDC handled part of MGP's distribution. RNDC filed for Chapter 11 bankruptcy on July 26 in the Southern District of Texas. The filing listed liabilities between $1 billion and $10 billion and more than 100,000 creditors.More Beverage Stocks:Analysts reboot Corona Beer owner stock price target in face of market pressuresCoca-Cola keeps beating its rivals, and Wall Street noticedBank of America says Coca-Cola, dividend giant, is on saleMGP did not wait to find out how that would end.In June, the company shifted 10 markets to Reyes Beverage Group, the largest beer and beverage distributor in the country. Management said the handoff caused little disruption for customers, and the early read was positive.Why moving 10 markets to Reyes Beverage Group matters for MGPIThe switch was not just about avoiding a bad partner. It was about landing with a better one.During the first month working with Reyes, depletions of MGP's premium-plus brands rose 7%, Investing.com reported. Depletions measure how fast distributors sell product through to retailers, so a rise there signals real demand, not just shipments piling up.Related: National beer and wine leader files Chapter 11 bankruptcyMid-tier brands rose 4% in that first month.MGP is still moving some open and control-state markets to healthy distributors, with more changes expected to take effect later in the year.For a smaller company competing against Diageo (DEO) and Brown-Forman (BF.B), a reliable distribution path is one of the few things fully within its control.MGP Ingredients switched distributors months before Republic National Distributing Company filed for bankruptcy, landing with a stronger partner and limiting its losses.Smith Collection/Gado / Getty ImagesWhat the RNDC bankruptcy is costing MGP right nowThe split was not completely free.MGP recorded a $2.1 million provision for credit loss in the second quarter tied to the RNDC bankruptcy, its earnings release shows. That covers money the distributor is unlikely to repay.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info