The sued the largest U.S. distributor of on Thursday, saying it is illegally discriminating against small and independent businesses.
Southern Glazer鈥檚 Wine and Spirits doesn鈥檛 give small and independent stores access to discounts and rebates that larger chains receive, putting the smaller stores at a competitive disadvantage, the FTC alleged in the lawsuit it filed in California.
鈥淲hen local businesses get squeezed because of unfair pricing practices that favor large chains, Americans see fewer choices and pay higher prices鈥攁nd communities suffer,鈥� said in a statement.
Miami-based Southern Glazer's called the lawsuit 鈥渂oth misguided and legally flawed.鈥�
鈥淎lcohol distributors face numerous regulations that dictate how they compete and can price and discount products, and Southern Glazer鈥檚 complies with those legal requirements,鈥� the company said. 鈥淪outhern Glazer鈥檚 strongly disputes the FTC鈥檚 allegations and will defend itself vigorously in this litigation.鈥�
Southern Glazer鈥檚 is one of the largest privately held companies in the U.S., with $26 billion in revenue from to retail customers in 2023, according to the FTC. It operates in 44 states and serves commercial customers such as Total Wine and .
According to , Southern Glazer's has repeatedly offered quantity discounts and rebates to large buyers that aren't justified by the difference in the costs of distributing products to different retailers.
Southern Glazer's also doesn't inform smaller retailers about quantity discounts, rebates and other special offers available to larger chains even when smaller stores could participate in the deals, the FTC alleged.
Dee-ann Durbin, The Associated Press
