06/06/2024

Alleged Kickbacks Fuel FTC's Lawsuit Against Southern Glazer

The company is believed to have provided kickbacks to retail customers

The Federal Trade Commission (FTC) is preparing an antitrust lawsuit against the largest U.S. alcohol distributor, Southern Glazer’s Wine and Spirits, two sources familiar with the matter told CNBC. The suit could be filed in a matter of weeks.

The FTC’s case is not yet finalized. But one source said the commission is likely to allege that Southern Glazer’s has been providing "secret kickbacks" to large retail customers and violating the 1936 Robinson-Patman Act. POLITICO first reported the potential legal action.

Florida-based Southern Glazer’s Wine and Spirits distributes alcohol for more than 7,000 brands in 44 states. Founded in 1968, the company serves as a middleman between alcohol producers and the liquor stores that consumers buy from. The company reported $26 billion in revenue in 2023, according to Forbes.

Please select this link to read the complete article from CNBC.