Cases of Jim Beam brand bourbon are stacked in a warehouse at the Southern Glazer’s Wine and Spirits LLC distribution center in Louisville, Kentucky on September 28, 2018.
Luke Schallert | Bloomberg | Getty Images
this Federal Trade Commission A new lawsuit accuses the largest U.S. wine and spirits distributor of illegal price discrimination that led to major chains — including Costco, hook up and Total wine and more — The prices are much better than those at nearby grocery stores, convenience stores and independent liquor stores.
dealer, Wines and Spirits in Southern GlazerThe company is the 10th largest private company in the United States and will have sales revenue from retail customers of about $26 billion by 2023, the FTC said Thursday in announcing the lawsuit.
The lawsuit alleges that Southern Company distributes approximately 5,600 wine and spirits brands, depriving small businesses of the opportunity to receive discounts and rebates and harming their ability to compete with large national and regional chains.
The lawsuit accuses the distributor of violating the Robinson-Patman Act by offering “substantial discounts” to certain retailers without any market reasonableness.
“Americans see fewer choices and pay more when local businesses are squeezed by unfair pricing practices that favor large chains,” FTC Chairwoman Lina Khan said in a statement. prices, and the community will be affected.
“The law states that businesses of all sizes should be able to compete on a level playing field,” Khan said. “For decades, enforcers have ignored this mandate from Congress, but the FTC’s action today will help protect fair competition, lower prices and restore the rule of law.”
CNBC has asked China Southern to comment on the lawsuit.
The lawsuit, filed in the U.S. District Court for the Central District of California, accuses China Southern of price discrimination from at least 2018 to the present.
Southern distributes wine and spirits to a number of large suppliers, including suppliers of Pernod Ricard, Jameson Irish Whiskey and Absolut Vodka; Bacardi USA, Patron Silver Tequila, Diageo, the supplier of Gray Goose Vodka and Bacardi Rum; Diageo, the supplier of Smirnoff Vodka; and Beam Suntory, the supplier of Jim Beam bourbon and Mark’s whiskey, according to the FTC.
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