FTC prepares to sue largest U.S. alcohol distributor, alleging 'secret kickbacks'

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Southern Glazer's made $26 billion in revenue last year. The FTC is likely to allege it has been providing 'secret kickbacks' to large retail customers.

The Federal Trade Commission is building a lawsuit against the largest American alcohol distributor, Southern Glazer's Wine and Spirits, sources told CNBC. The suit could be filed in a matter of weeks.

Lina Khan, chair of the Federal Trade Commission, speaks at The Wall Street Journal’s Future of Everything Festival in New York City, U.S., May 22, 2024.against the largest U.S. alcohol distributor, Southern Glazer's Wine and Spirits, two sources familiar with the matter tell CNBC. The suit could be filed in a matter of weeks.

A worker operates a forklift to move a pallet of Yellow Tail brand wine in the warehouse at Southern Glazer's Wine and Spirits LLC distribution center in Louisville, Kentucky.say the Robinson-Patman Act has been known to inadvertently ban discounts that can help bring down consumer prices — a risky prospect for Biden who has hinged his economic platform on making costs cheaper for voters.

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