Southern Glazer's settles FTC case over liquor pricing discrimination

Southern Glazer's Wine and Spirits, the largest liquor distributor in the United States, has reached a settlement with the Federal Trade Commission (FTC) regarding allegations of price discrimination. The FTC had sued the company in 2024, alleging it violated the Robinson-Patman Act by offering significant discounts and rebates to large chain retailers, such as Walmart, Costco, and Kroger, while denying similar pricing to smaller, independent stores in the same vicinity.

Under the terms of the settlement, which covers sales to the five largest chain retailers across 26 states, Southern Glazer's must compensate smaller retailers if it engages in significant or recurring price discrimination. An independent monitor will oversee the agreement for six years, receiving detailed records from the company twice a year.

Southern Glazer's stated it is pleased to resolve the case without a trial and maintained that it did not violate the law. The company noted that the proposed order does not prohibit specific business activities and does not anticipate material changes to its pricing practices.