In the span of just a few weeks, California has taken hit after hit – first one major exit, then another, then another… Entire operations are being shut down. Plants closed. Thousands of jobs gone.
There’s no sugar-coating it: this is bad news for workers, bad news for local economies, and a troubling signal for what could come next.
Because of course, these companies aren’t walking away for no reason. They’re responding to something bigger…
Follow The Coconut Mama
• For fun lists, healthy living tips, and bar conversation topics, make sure to follow The Coconut Mama. Click here to access The Coconut Mama’s profile page and be sure to hit the Follow button here or at the top of this article!
• Have feedback? Add a comment below!
Shutterstock
Let’s start with the biggest: Republic National Distributing Company (RNDC), one of the largest alcohol wholesalers in the U.S., has filed WARN notices to shut down all California operations.
That’s 1,756 confirmed layoffs, including warehouse workers, drivers, HR, and sales teams – gone by September 2, 2025.
Shutterstock
The company didn’t mince words. Their CEO blamed “rising operational costs, industry headwinds, and supplier changes.”
In other words: too expensive, too complicated, and no longer profitable to stay. When brands like Tito’s and Gallo pulled their business, RNDC followed suit by pulling out.
Shutterstock
RNDC handled delivery and distribution for thousands of beverage brands. With them gone, others (like Reyes and Breakthru) are scrambling to pick up the pieces.
Expect some pricing and availability shakeups. This one’s going to be felt on both the retail and restaurant sides.
Shutterstock
Next up: Cresco Labs, one of the largest cannabis companies in the country, just announced it’s divesting all California operations, including cultivation sites, production facilities, and retail shops.
They’re leaving the state’s cannabis market behind entirely.
Shutterstock
Cresco is calling it a “strategic realignment”, but let’s be real: California’s cannabis market has been in chaos.
Overproduction, crashing prices, illegal competition, high taxes, and tough regulations have made it nearly impossible to turn a profit. And Cresco finally said, “We’re out.”
And they’re not alone. TerrAscend, one of the bigger players in the U.S. cannabis space, just closed 20 dispensaries in Michigan.
Shutterstock
Cresco owns the “Sunnyside” dispensary chain, and several of those stores are being sold or shut down.
Employees across cultivation, retail, and corporate offices are being laid off as the company pivots toward more profitable states.
Shutterstock
Now for a quiet (but historic) closure: Spreckels Sugar is closing its Brawley plant, the last beet-sugar refinery in California.
The closure is expected to wrap by late 2025 or early 2026, and it will affect around 400 jobs, including seasonal and full-time workers.
Follow The Coconut Mama
• For fun lists, healthy living tips, and bar conversation topics, make sure to follow The Coconut Mama. Click here to access The Coconut Mama’s profile page and be sure to hit the Follow button here or at the top of this article!
• Have feedback? Add a comment below!
Shutterstock
Spreckels has operated in California for nearly a century, but despite over $100 million in recent upgrades, the company’s parent firm said it couldn’t make the numbers work.
Higher costs, aging infrastructure, and competition from cheaper sugar producers in other states forced their hand.
Shutterstock
It’s not just plant workers. The closure also hurts Imperial Valley beet growers, who now have nowhere to send their crops.
That’s hundreds of acres of sugar beets (and millions in revenue) suddenly wiped off the map.
Shutterstock
These aren’t just layoffs or quiet cost-cutting measures. These are full exits.
Buildings will be emptied. Contracts will be canceled. Equipment will be sold off or relocated. Entire supply chains built over decades will be dismantled.
And for the towns they’re leaving behind? It’s a big loss.
Local economies will lose anchor employers. Nearby businesses that depended on those workers – cafes, gas stations, service providers – will feel the effects.
From Sacramento to Salinas to Brawley, these were long-standing operations that helped shape the local job market, and now they’re winding down…
Shutterstock
So, the question is: Why is this happening? And why now?
Well, it’s not one thing – it’s everything.
High utility costs, strict regulations, insurance chaos, climate risks, wage pressures… the list goes on. California is an expensive state.
Each company had its own reason, but they all came to the same conclusion: it’s no longer worth doing business here.
Shutterstock
Sure, some workers may find new roles. But many won’t. And most of these jobs aren’t relocating – they’re just gone.
The bigger question? Who’s next.
Shutterstock
Here’s a quick recap:
– RNDC – Exiting alcohol distribution in CA, 1,750+ jobs cut
– Cresco Labs – Shutting down cannabis operations statewide
– Spreckels Sugar – Closing last sugar beet plant in Brawley, ~400 jobs gone
Three exits. Three industries. One state getting harder to operate in.
Shutterstock
Now it’s your turn.
Do you live near one of these shuttered facilities? Know someone impacted by the RNDC, Cresco, or Spreckels closures?
Tell us your story in the comments.
Shutterstock
Leave a Comment