Southern Glazer's settles six-year FTC case over retailer pricing

  • Southern Glazer's settled FTC claims over discriminatory pricing affecting independent retailers.
  • The agreement covers five major chain retailers across 26 states for six years.
  • An independent monitor will review records twice yearly and require payments for qualifying discrimination.

Southern Glazer's Wine and Spirits, the largest U.S. distributor of wines and spirits, agreed to settle Federal Trade Commission claims that it denied smaller retailers discounts and rebates offered to chains including Total Wine, Walmart and Kroger. Under the six-year agreement, the company must pay a smaller retailer when an independent monitor finds significant or recurring discrimination in sales of the same products to a larger nearby store. Southern Glazer's must provide detailed records to the monitor twice a year. The settlement covers sales to the five largest chain retailers in 26 states, compared with the FTC's original allegations spanning 33 states; a later investigation found insufficient evidence in seven states. Southern Glazer's reported $26 billion in 2023 retail wine and spirits revenue and distributes one in every three U.S. bottles. The company admitted no wrongdoing, while FTC Chairman Andrew Ferguson said he initially opposed the lawsuit but viewed the settlement as the best outcome.

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