FTC Settles with Southern Glazer’s Over Alleged Price Discrimination
FTC reaches settlement with Southern Glazer's over claims of price discrimination against small alcohol retailers. Details on the agreement and implications.
POLICY WIRE — Washington, D.C. — The Federal Trade Commission has reached a settlement with Southern Glazer’s Wine and Spirits over allegations that it discriminated against smaller and independent alcohol retailers by not offering them the same discounts and rebates as larger chains.
The FTC filed a lawsuit in December 2024, alleging that Southern Glazer’s violated the Robinson-Patman Act by providing better pricing to large retailers like Walmart and Kroger while excluding smaller businesses, even when they were located close to each other. Under the settlement, Southern Glazer’s must pay smaller retailers if it engages in significant or recurring price discrimination for similar products sold to nearby larger stores.
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The agreement includes oversight by an independent monitor for six years, requiring Southern Glazer’s to submit detailed records twice a year. The company, one of the largest privately held firms in the U.S., generated $26 billion in revenue from wine and spirits sales in 2023. The settlement covers sales to the five largest chain retailers in 26 states, though the original case involved 33 states.
Reporting by Policy-Wire (PW)
