of Federal Trade Commission It’s new lawsuit America’s largest wine and spirits distributor accused of unfair price discrimination against major chains costco, kroger and total wine etc. — prices much better than those offered to small “mom and pop” businesses such as independent liquor stores.
Distributor, Southern Glazer Wines and Spiritsis the 10th largest privately held company in the United States, with approximately $26 billion in revenue from sales to retail customers in 2023, the FTC said in Thursday’s lawsuit announcement.
“Currently, Southern sells one out of every three bottles of wine and spirits purchased in the United States,” the lawsuit filed in Los Angeles federal court states.
The complaint alleges that since at least 2018, Southern Glazer’s Wine and Spirits has deprived small businesses of access to discounts and rebates, hurting their ability to compete with large national and regional chains. .
The complaint alleges that the distributor violated the Robinson-Patman Act by offering “deep discounts” to certain retailers without demonstrating market legitimacy.
“When local businesses are squeezed out by unfair pricing that favors large chains, Americans have fewer choices, pay higher prices, and become more Society will suffer.”
“The law says businesses of all sizes should be able to compete on a level playing field,” Khan said. “Enforcement authorities have ignored this mandate from Congress for decades, but today’s FTC action will help protect fair competition, lower prices, and restore the rule of law. .”
Khan, along with two FTC commissioners, voted to approve the lawsuit. Two commissioners voted against the lawsuit, including Andrew Ferguson, whom President-elect Donald Trump named on Tuesday to replace Mr. Khan as FTC chairman in January. .
In his dissenting statement, Mr. Ferguson said the FTC has not filed a Robinson-Patman Act complaint in nearly a quarter of a century. He also said that “Southern appears likely to be successful with a defense that justifies the costs,” and that he has not yet seen sufficient evidence to show it would harm competition more than marginally. .
in statement Southern Glazers responded to the lawsuit by saying, “Southern Glazers strongly disputes the FTC’s allegations and will vigorously defend this lawsuit.” The company called the lawsuit “misguided and legally flawed.” “There is,” he criticized.
“The FTC’s lawsuit alleges that Southern Glazer’s and nearly every seller of consumer products in the country use “We are taking issue with the use of volume discounts,” the company said. Said.
Southern Glazers said it offers different levels of discounts to reflect the costs it incurs in selling different quantities of wine and liquor to customers. These discounts and pricing “do not violate the RPA,” the company said.
Southern Glazer’s sells thousands of wine and spirits brands to many major suppliers, including Pernod Ricard, supplier of Jameson Irish Whiskey and Absolut Vodka. Bacardi USA, supplier of Patron Silver Tequila, Gray Goose Vodka, and Bacardi Rum. Diageo, supplier of Smirnoff vodka. According to the FTC, Suntory Global Spirits is a supplier of Jim Beam bourbon and Maker’s Mark whiskey.
The agency has been investigating Southern Glaser for more than a year.
In October 2023, the FTC filed a petition in federal court seeking administrative enforcement. summon to total wine Request documents and other records as part of that investigation.
