A recent filing by the Federal Trade Commission in its lawsuit against Southern Glazer's, the nation's largest alcohol distributor, says small, independent retailers are charged up to 67 percent more than larger chain stores in the same area for the same products. Some NCPA members sell alcoholic drinks and have been affected by Southern Glazer's pricing practices.
The lawsuit alleges the company uses several pricing mechanisms to discriminate against smaller retailers, including quantity discounts and rebates offered only to large buyers. It says the price differences aren't justified by the differences in cost of distributing the products across retailers.
The FTC sued Southern Glazer's in December, in its first enforcement action under the Robinson Patman Act in a generation. The RPA prohibits price discrimination when buyers purchase goods in similar quantities or volumes, guaranteeing the same discounts big retailers get are accessible to all retailers and wholesalers who buy in similar quantities.
