FTC Settles with Southern Glazer's Over Claims of Discriminating Against Smaller Alcohol Retailers

The Federal Trade Commission announced Friday it has settled with Southern Glazer’s Wine and Spirits over allegations that the company discriminated against smaller alcohol retailers. The settlement resolves a lawsuit filed in December 2024, which claimed Southern Glazer’s provided discounts and rebates to larger retailers that were not available to smaller stores, even when they were located in close proximity.

The FTC's case was brought under the Robinson-Patman Act of 1936, a law that permits volume discounts only when sellers can demonstrate that such discounts result in actual cost efficiencies from selling in bulk. The settlement mandates that Southern Glazer’s will pay a smaller retailer if it is found to have engaged in significant or recurring price discrimination by selling the same products to a nearby larger store at a lower price.

An independent monitor will oversee the terms of the settlement for six years, and Southern Glazer’s will be required to provide the monitor with detailed sales records twice annually. The settlement specifically covers Southern Glazer’s sales to the five largest chain retailers across 26 states. Initially, the FTC's lawsuit alleged discrimination in 33 states, but subsequent investigations did not yield evidence of such practices in seven of them.

Southern Glazer’s, described by the FTC as one of the largest privately held companies in the U.S., reported $26 billion in revenue from wine and spirits sales to retail customers in 2023. The company distributes approximately one-third of all wine and spirits sold in the United States.

In a statement, Southern Glazer’s expressed satisfaction with the settlement, noting it resolved the case without a trial or an admission of wrongdoing. Alan Greenspan, the company's chief legal and compliance officer, stated that Southern Glazer’s has not violated the Robinson-Patman Act and anticipates no significant changes to its business or pricing practices as a result of the order.

The lawsuit was initiated during the final days of the Biden administration. Andrew Ferguson, who was appointed FTC chairman in January 2025 under President Trump, stated that he initially had reservations about the lawsuit, believing Southern Glazer’s could demonstrate that cost differences justified most price variations. However, a federal court's denial of Southern Glazer’s motion to dismiss the case in April 2025 led to the settlement. Ferguson described the agreement as a beneficial outcome for all parties involved, noting that the order is designed such that Southern Glazer’s will only incur costs if a monitor confirms that an independent retailer paid more than a competing chain, suggesting compliance with the law would result in low compliance costs.