FTC Sues Southern Glazer's for Violating Robinson-Patman Act, Favoring Big Chains

Dec 12, 2024, 06:40 PM

The Federal Trade Commission (FTC) has filed a lawsuit against Southern Glazer's Wine and Spirits LLC, the largest U.S. distributor of wine and spirits, for allegedly engaging in illegal price discrimination. The complaint, filed in the U.S. District Court for the Central District of California, accuses Southern Glazer's of violating the Robinson-Patman Act by offering significant discounts and rebates to large retail chains like Costco, Kroger, and Total Wine & More, while charging much higher prices to smaller, independent retailers. This practice, according to the FTC, harms competition and consumer choice by depriving small businesses of the ability to compete on a level playing field. Southern Glazer's, which generated approximately $26 billion in revenue in 2023, serves as a distributor for major brands including Pernod Ricard, Bacardi U.S.A., Diageo, and Beam Suntory. FTC Chair Lina Khan stated that these discriminatory pricing practices, not justified by cost differences, have caused independent retailers to lose sales and customers. The lawsuit seeks to bar Southern Glazer's from continuing these practices and aims to restore fair competition, lower prices, and uphold the rule of law.