Top U.S. liquor distributor favored Costco, Kroger, other chains over small businesses: FTC

Core Viewpoint - The Federal Trade Commission (FTC) has filed a lawsuit against Southern Glazer's Wine and Spirits for illegal price discrimination, favoring large chain buyers over smaller businesses, which undermines fair competition in the market [3]. Group 1: Company Overview - Southern Glazer's Wine and Spirits is the tenth largest privately held company in the U.S., generating approximately $26 billion in revenues from retail sales in 2023 [2]. - The company distributes around 5,600 wine and spirit brands, including major suppliers like Pernod Ricard, Bacardi U.S.A., Diageo, and Beam Suntory [4]. Group 2: Legal Allegations - The FTC's complaint alleges that Southern Glazer's has engaged in price discrimination since at least 2018, providing better prices to large chains such as Costco and Kroger compared to smaller neighborhood stores [2][3]. - The lawsuit aims to address the harm caused to smaller businesses, which are deprived of discounts and rebates, thus affecting their competitiveness against larger national and regional chains [2][3].