The U.S. Federal Trade Commission is preparing to file an antitrust lawsuit against Southern Glazer’s Wine and Spirits, the largest alcohol distributor in America, on the ground that the company has been giving “secret kickbacks” to large retail businesses and violating the Robinson-Patman Act.
The 1936 act, an antitrust law, forbids a business from selling to one customer at a better price than to another for the same goods. While the FTC interprets the law not as a wholesale prohibition of different prices—volume discounts, for example, are allowed—but rather when the price differences interfere with competition. This is the first time since 2000 that a case has been filed under that act.
Southern Glazer distributes more than 7,000 alcohol brands in 44 state, reporting revenue of $26 billion in 2023. It works as a middleman between the alcohol producers and the retail store where consumers shop.
