WASHINGTON, D.C. — The Federal Trade Commission (FTC) has filed a lawsuit against Southern Glazer’s Wine and Spirits, LLC, alleging widespread violations of the Robinson-Patman Act. The complaint accuses the nation’s largest distributor of wine and spirits of engaging in discriminatory pricing practices that unfairly harm small, independent retailers while benefiting large national and regional chains.
According to the FTC, Southern has for years sold identical bottles of wine and spirits to small retailers at significantly higher prices than what it charges large chain stores such as Total Wine & More, Costco, and Kroger. These pricing discrepancies, the complaint alleges, are not justified by cost efficiencies or legitimate competitive practices. Instead, the tactics create substantial disadvantages for independent “mom and pop” stores, which struggle to compete and are losing business as a result.
“Southern’s actions have harmed small grocery stores, convenience stores, and wine shops critical to their communities,” said FTC Chair Lina M. Khan. “This lawsuit represents an effort to restore fair competition and consumer choice.”
The FTC also alleges that Southern’s pricing strategies involve mechanisms such as undisclosed rebates and large quantity discounts designed to be inaccessible to smaller retailers. Such practices undermine the Robinson-Patman Act’s goal of leveling the playing field between large and small businesses, which is intended to preserve marketplace competition and protect consumers from higher prices and reduced options.
Southern Glazer’s, which generated $26 billion in revenues in 2023, serves as the primary distributor for major brands such as Jameson Irish Whiskey, Bacardi Rum, and Jim Beam Bourbon. The FTC asserts that its pricing policies have caused serious economic harm to local retailers, reducing consumers’ options and squeezing out independent alternatives.
The lawsuit, filed in the U.S. District Court for the Central District of California, seeks a permanent injunction prohibiting Southern from continuing these practices and insists that small businesses be granted equivalent access to discounts unless cost differences or competitive pricing justifications can be substantiated.
Should the lawsuit succeed, it would mark a major step toward ensuring a fairer marketplace that promotes competition, expands consumer choice, and prevents large corporations from stifling independent businesses.
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