INDIANAPOLIS  — Indiana’s largest beer distributor is laying off 100 workers after losing a contract with a major supplier.

Monarch Beverage Co. expects the job cuts to occur by Sept. 1, when the Indianapolis wholesaler closes its wine distribution business.

The reason behind the closing is a long-running feud with state officials and liquor wholesalers over what products it can sell.

State rules forbid Monarch from selling hard liquor at a time when many wine companies are also producing liquor products.

Monarch’s top wine supplier, California-based E&J Gallo Winery, notified Monarch in March that it’s ending its ties with Monarch because it can’t distribute its growing portfolio of liquor products.