Major Spirits Distributor Forced to Shell Out $5.5 Million Following Class Action Lawsuit Settlement
Southern Glazer’s was forced to pay $5.5 million after a class action lawsuit within the state of California was settled by the spirits conglomerate. (Photo: Ikon Images via AP Images)
BNN Breaking reported on Saturday that Southern Glazer’s Wine & Spirits, a major spirits distributor, is being forced to pay $5.5 million as part of a settlement for a class action lawsuit in California.
The Spirits Business reports that California liquor laws allow distributors to charge 1% per month late fees, yet the class action lawsuit cites that Southern Glazer’s Wine & Spirits was charging 2%.
The alleged “illegal” late fees placed financial strain on restaurant owners already facing insurmountable obstacles in the wake of the COVID-19 pandemic.
Though BNN reports that Southern Glazer’s “strongly denied” wrongdoing, the distributor chose to settle and cancel $44.1 million in outstanding late fees, according to the class action lawsuit settlement.
The class action lawsuit involved 73,276 individuals who are eligible for compensation. A minimum of $189,500 was allotted for the payouts. California customers of Southern Glazer’s Wine and Spirits from the 13 years between June 13, 2010, and June 30, 2023, are eligible.
Southern Glazer’s Wine & Spirits — a Business With a Lengthy History of Legal Battles
If you’ve purchased a bottle of booze from a retail store or bought a pour at a bar or restaurant, there’s a good chance the liquor was ordered from Southern Glazer’s. The liquor distributor carries top spirit brands like Bacardi, Jameson, Grey Goose and countless more.
The brand has a strong foothold in the liquor industry and a lengthy list of lawsuits — including an antitrust probe.
In January, Eater San Francisco reported that Southern Glazer’s Wine and Spirits was being sued by Provi, an alcohol tech startup.
Eater San Francisco reported that Southern Glazer’s allegedly boycotted Provi and forced all its customers to use Southern’s technology. Yet, this was not Southern Glazer’s first legal battle or run-in with the government.
In October, the Federal Trade Commission probed the big box liquor retailer, Total Wine, due to allegations of preferential treatment from Southern Glazer’s Wine & Spirits, claiming the distributor practiced unfair pricing with the retailer.
The probe claimed that if Southern Glazer’s was offering Total Wine cheaper discounts, customers would favor the retailer over smaller liquor stores, providing Total Wine an unfair advantage.
Additionally, The Drinks Business reported in November 2022 that the IRS raided Southern Glazer’s California office over “unfair trade practices.”
In 2017, Southern Glazer’s was hit with a fraud lawsuit over committing “unlawful, deceptive and fraudulent business practices,” according to The Spirits Business. The company allegedly claimed a retailer purchased thousands of dollars in alcohol that he never received. When he was taxed for the purchase, he decided to sue the distributor.
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