The Federal Trade Commission (FTC) alleges in a lawsuit Thursday that America's largest distributor of wine and alcoholic beverages engaged in illegal price discrimination by giving advantages to large chains over independent grocers. did.
FTC complaint claim Southern Glazer's Wine and Spirits, the nation's 10th largest privately held company, deprives small businesses of access to discounts and rebates, making them less competitive with large national and regional chains. It is said that he is letting it happen.
The Antitrust Office's lawsuit alleges that the distributor violated the Robinson-Patman Act by giving “deep discounts” to some retailers based on market legitimacy.
“When local businesses are squeezed out by unfair pricing practices that favor large chains, Americans have fewer choices, pay higher prices, and communities are left with fewer choices,” FTC Chair Lina Khan said in a statement. will suffer,” he said.
“The law says companies of all sizes should be able to compete on a level playing field. Enforcement agencies have ignored this mandate from Congress for decades, but today's FTC Actions will help protect fair competition, lower prices, and restore the rule of law,” the FTC Chairman continued.
CNBC News reported:
The lawsuit, filed in the U.S. District Court for the Central District of California, accuses Southern of price discrimination from at least 2018 to the present.
Southern sells wine and spirits to many major suppliers, including Pernod Ricard, supplier of Jameson Irish Whiskey and Absolut Vodka. Bacardi USA, supplier of Patron Silver Tequila, Gray Goose Vodka, and Bacardi Rum. Diageo, supplier of Smirnoff vodka. So is Beam Suntory, supplier of Jim Beam bourbon and Maker's Mark whiskey, according to the FTC.
Southern Glazer Wine and Spirits will generate approximately $26 billion in revenue from sales to retail customers in 2023.
Sean Moran is a policy reporter at Breitbart News. Follow him on X @SeanMoran3.
