It was clearly going to lead to problems long term, having two parallel distribution chains, one of which cut out two layers of middle men, the Rotherys of this world, and the dealers/shops, leaving those two with no margin.
JSB have fallen prey to the usual risk area, when the supplier is dealing with a customer of significantly greater strength. If you don't follow this, then look at the power that the supermarkets wield over the food supply chain. While farmers' markets just nibble away at the fringes, the big boys are not bothered. If farmers' markets became more widespread and were eating into market share in double figure percents, then you would see a reaction.
If JSB felt that one sole distributor was the right way to go, and it probably was, then what they could have done would have been to invite bids. Then several possible contenders, Air Ammo included, could have put in an offer and JSB would have had a choice. But if you have one large consumer leaning on you to give them an exclusive, and they have the clout, then maybe the pragmatic answer is to cave in.