Southern Glazer’s Wine & Spirits has settled with the Federal Trade Commission over allegations that the US distributor charged small retailers more than larger chains for the same products.
According to a statement by the Federal Trade Commission (FTC) on Friday (2 October), the settlement puts “limitations” on Southern Glazer’s ability to charge independent retailers higher prices than nearby chain competitors.
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The “proposed stipulated order” filed by the FTC will remain in effect for six years and be overseen by an independent monitor.
The agreement follows a pause in litigation in June, when both parties asked the court to stay the case while they finalised terms.
The legal battle began in December 2024, when the FTC accused Southern Glazer’s of violating US competition rules by depriving small, independent retailers of competitive discounts and rebates.
In its complaint, the FTC claimed independent stores paid “significantly higher prices” than chains including Total Wine, Walmart and Kroger for identical products, even where the retailers were only streets apart.
The watchdog said the “discriminatory pricing” practice made it harder for independents to compete.
Daniel Guarnera, the FTC’s bureau of competition director, said on Friday: “Small businesses are an invaluable part of the American economy and way of life. The FTC is committed to ensuring that all businesses, no matter their size, can compete on a fair and level playing field to serve their customers and boost the entire American economy.”
Under the terms of the proposed stipulated order, the agreement could be breached when the difference in prices charged to retailers exceed a threshold based on state-specific operating costs. It also cited a $5,000 aggregate threshold over a 12-month period.
Southern Glazer’s could resolve a violation by paying the affected retailer 1.5 times the aggregate price difference.
If the FTC brings an enforcement action and prevails, the payment would rise to twice that amount, the statement added.
The settlement covers “nearly all” the distributor’s wine and spirits sales to the five largest chain retailers in 26 states, the FTC said.
