December 12, 2024 / MIAMI & DALLAS – Southern Glazer’s Wine & Spirits (Southern Glazer’s), the world’s preeminent distributor of beverage alcohol, today issued the following statement in response to a lawsuit filed by the U.S. Federal Trade Commission (FTC) alleging violations of the Robinson-Patman Act (RPA). The RPA is a Depression-era federal antitrust law that has not been enforced in decades because of bipartisan concern that enforcement leads to higher prices for consumers. This suit was authorized by a 3-2 vote of the FTC commissioners along party lines, with dissents issued by Commissioner Holyoak and Commissioner Ferguson, whom President-elect Trump has selected to chair the FTC in his administration.
“The FTC’s lawsuit takes issue with the use of volume discounts that Southern Glazer’s—and nearly every distributor of consumer products in the country—uses to lower customers’ costs and enable consumers to pay lower prices for the everyday goods they need. Dissents filed by Commissioners Holyoak and Ferguson articulate reasons why this enforcement action—aimed at an industry that is already heavily regulated by the states pursuant to the 21st Amendment of the U.S. Constitution and by the U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau—is both misguided and legally flawed. Alcohol distributors face numerous regulations that dictate how they compete and can price and discount products, and Southern Glazer’s complies with those legal requirements. Southern Glazer’s strongly disputes the FTC’s allegations and will defend itself vigorously in this litigation.
“At Southern Glazer’s, we are proud to provide our customers and suppliers with the best-in-the-industry service for which we are known. Operating in the highly competitive alcohol distribution business, we offer different levels of discounts based on the cost we incur to sell different quantities to customers and make all discount levels available to all eligible retailers, including chain stores and small businesses alike. We have thousands of employees focused on selling to small retailers, and for the benefit of those customers, we create small quantity discounts that provide similar or even lower prices on a per-case basis compared to large quantity deals we also offer. Our pricing and discounting structure does not violate the RPA.”
About Southern Glazer’s Wine & Spirits
Southern Glazer’s Wine & Spirits is the world’s preeminent distributor of beverage alcohol, building brands for moments that matter. The multi-generational, family-owned Company has operations in 44 U.S. states, the District of Columbia, and Canada, as well as brokerage operations through its WEBB Banks division in the Caribbean, Central and South America. In 2024, Southern Glazer’s was recognized by Newsweek as one of America’s Greatest Workplaces for Diversity and America’s Greatest Workplaces for Women. Southern Glazer’s urges all retail customers and adult consumers to market, sell, serve, and enjoy its products responsibly. For more information visit www.southernglazers.com.
