It seems the long, ongoing battle between the Federal Trade Commission (FTC) and Southern Glazer’s has come to a head. The government agency hinted for over a year that it was preparing to sue Southern Glazer’s for unfair pricing structures that favor large chains like Total Wine, Costco, and Kroger, citing “secret kickbacks” in deals with big retailers.
On Thursday, the FTC finally announced the lawsuit against Southern Glazer’s — the largest distributor of wine and spirits in the U.S. — for illegal price discrimination, a violation of the Robinson-Patman Act of 1936, which is intended to protect fair competition.
The complaint alleges that the distribution company has harmed small, independent retailers by withholding access to discounts and rebates while selling products to large chains with significant price cuts. The drastic price discrepancies between large and small retailers have made it near-impossible for independent retailers to keep up, according to the FTC.
In the suit, the FTC seeks to ensure that businesses both big and small are able to compete on an even playing field when it comes to pricing, with distributors offering equal access to all discounts and rebates. The agency’s recent statement suggests that Southern Glazer’s has been actively engaging in price discrimination since at least 2018, and is pervasive in their company’s business model.
“When local businesses get squeezed because of unfair pricing practices that favor large chains, Americans see fewer choices and pay higher prices — and communities suffer,” FTC chair Lina M. Khan said in
