Online alcohol marketplace Provi has resolved its federal antitrust case against Southern Glazer’s Wine & Spirits, bringing an end to litigation it filed in 2022.
“Southern Glazer’s Wine & Spirits and Provi have reached a resolution in the litigation between our two organisations,” the companies said in a joint statement on Wednesday (15 October).
As part of the settlement, Provi’s digital platform is now an approved channel for placing orders from Southern Glazer’s distribution portfolio.
Provi, a US online alcohol wholesaler, lodged its suit in March 2022 in the US District Court for the Northern District of Illinois, Eastern Division, against Southern Glazer’s and Republic National Distributing Company (RNDC). The complaint advanced to court in May last year.
The group had alleged that the two distributors had made “unlawful efforts” to violate competition regulations.
Provi accused both businesses of having worked to “maintain or enhance their respective monopoly power” in online alcoholic drinks markets, with regard to “search and display advertising on online alcohol marketplaces, and data analytics services” in “certain states”.
Southern Glazer’s and RNDC were also accused of “blocking and rejecting” wine and spirits orders customers who decided to “communicate through Provi”, as “conspiring to boycott” the company “by forcing or coercing retailers” not to use it.
Claims were also brought up against Southern specifically, that said the group allegedly forced retailers “to use its own e-commerce marketplace by requiring all online sales to come through its own online marketplace”.
Provi reached a separate settlement with RNDC in July, which both parties described at the time as "a mutually satisfactory resolution".
As part of the settlement, both sides said they were "developing an integration" to enable retailers to place orders through Provi's online marketplace.
In a statement at the time, Bob Hendrickson, president and CEO of RNDC said: “This agreement reflects our continued focus on smart, practical innovation that enhances how we serve the industry. By partnering with Provi, we will give customers more flexibility in how they work with us, while maintaining the reliability and consistency they expect from RNDC.”
The integration was expected to be rolled out later this year.
Taylor Katzman, Founder and CEO of Provi added: “Provi and RNDC are committed to improving the beverage alcohol space while supporting the evolving needs of retailers and their distributor partners - within the framework of the three-tier system. This strategic relationship brings us closer to building a more efficient and connected industry.”
