Largest US liquor distributor favors Costco, Kroger, other chains over small businesses: FTC

gave Federal Trade Commission A new lawsuit accuses the largest U.S. wine and spirits distributor of illegal price discrimination against the big chains. Costco, Kroger And Total wine and more – Better prices than those offered at neighborhood grocery stores, convenience stores and independent liquor stores.

distributor, Southern Glazer’s Wines & SpiritsThe company, which is the 10th largest privately held company in the United States, generated about $26 billion in revenue from sales to retail customers in 2023, the FTC said in announcing the suit on Thursday.

Southern, which distributes about 5,600 wine and spirits brands, deprived small businesses of access to discounts and rebates, hurting their ability to compete with large national and regional chain stores, the complaint said. arrived

The lawsuit alleges that the distributor violated the Robinson-Pitman Act by providing “vertical discounts” to a specific set of retailers without any market justification.

FTC Chair Lena Khan said in a statement, “When local businesses are squeezed by unfair pricing practices that favor big chains, Americans see fewer choices and pay higher prices — and Communities suffer,” FTC Chair Lena Khan said in a statement.

“The law says that businesses of all sizes must be able to compete on a level playing field,” Khan said. “Enforcers have ignored this congressional mandate for decades, but today’s action by the FTC will help restore fair competition, lower prices, and the rule of law.”

The lawsuit, filed in the U.S. District Court for the Central District of California, alleges price discrimination dating back to at least 2018.

Southern distributes wine and spirits for many major suppliers, including Pernod Ricard, supplier of Jameson Irish Whiskey and Absolut Vodka; Bacardi USA, purveyor of Patron Silver Tequila, Gray Goose Vodka, and Bacardi Rum; Diageo, supplier of Smirnoff Vodka; and Beam Suntory, supplier of Jim Beam bourbon and Maker’s Mark whiskey, according to the FTC.

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