We had the same issue in dealing with a distributor in Hawaii. BY the time we ship it to the west coast and the steamer ship it to Hawaii... it just isn't cost effective to ship full cases this way. They still could have made decent margin, just not great margin like everyone else.
I was really hoping they'd take it so I could make a sales visit to help open retail outlets.
If we had REAL money, we'd have it produced in Australia, California and apparently Israel. That would eliminate most of the shipping cost.