• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Investing

Top liquor distributor favored Costco and Kroger over small businesses, FTC says

by December 13, 2024
written by December 13, 2024

The Federal Trade Commission in a new lawsuit accuses the largest U.S. distributor of wine and spirits of illegal price discrimination that gave large chains — among them Costco, Kroger and Total Wine & More — much better prices than those offered to neighborhood grocery stores, convenience shops and independent liquor stores.

The distributor, Southern Glazer’s Wine and Spirits, is the tenth largest privately held company in the United States, generating about $26 billion in revenues from sales to retail customers in 2023, the FTC said Thursday in announcing the suit.

The complaint says Southern, which distributes around 5,600 wine and spirit brands, deprived smaller businesses of access to discounts and rebates, harming their ability to compete with large national and regional chain stores.

The suit alleges the distributor violated the Robinson-Patman Act by providing “steep discounts” without any market justification to a certain set of retailers.

“When local businesses get squeezed because of unfair pricing practices that favor large chains, Americans see fewer choices and pay higher prices — and communities suffer,” said FTC Chair Lina Khan in a statement.

“The law says that businesses of all sizes should be able to compete on a level playing field,” Khan said. “Enforcers have ignored this mandate from Congress for decades, but the FTC’s action today will help protect fair competition, lower prices, and restore the rule of law.”

CNBC has requested comment on the lawsuit from Southern.

The suit, filed in U.S. District Court for the Central District of California, accuses Southern of price discrimination since at least 2018 up to now.

Southern distributes wine and spirits for many big suppliers, including Pernod Ricard, the supplier of Jameson Irish Whiskey and Absolut Vodka; Bacardi U.S.A., the supplier of Patron Silver Tequila, Grey Goose Vodka, and Bacardi Rum; Diageo, the supplier of Smirnoff Vodka; and Beam Suntory, the supplier of Jim Beam Bourbon and Makers Mark Whiskey, according to the FTC.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Mexico regulator rules Walmex used monopolistic practice, orders fine
next post
Factbox-Big banks expect a quarter-point cut for ECB’s first meeting of 2025

You may also like

Divided Fed proposes rule to ease capital requirements...

June 26, 2025

Women’s Tennis Association extends media rights deal with...

June 26, 2025

Bumble shares jump 26% as dating company plans...

June 26, 2025

Small-business AI use is lagging, but one firm...

June 25, 2025

Nvidia CEO Huang sells $15 million worth of...

June 25, 2025

How Fanatics is teaching business acumen to pro...

June 24, 2025

Walmart to pay $10 million to settle lawsuit...

June 23, 2025

Apple sued by shareholders who allege it overstated...

June 23, 2025

Tesla agrees to first deal to build China’s...

June 21, 2025

Oil prices rise more than 1% as Israel...

June 20, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Trump picks Sean Duffy to be transportation secretary
    • Stocks skid after Fed signals it will slow down its easing

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy