1st BATCH OF FILES AVAILABLE NOW!

Hundreds of pages of new filings dropped in the breathtakingly broad dispute between FTC and Southern Glazer's Wine & Spirits last wk. And it just keeps getting bigger. All 11 competing distributors subpoenaed by SGWS for detailed docs on pricing and strategy last summer are now accounted for. Recall, Hensley, Favorite Brands and Mexcor separately seek to resist the sprawling subpoena, claiming that Southern's requests are too big, too burdensome and not relevant. Five others joined forces and followed suit, including huge houses RNDC, Reyes, Breakthru and Johnson Bros, plus importer/wholesaler Winebow. Columbia, Olympic Eagle, Empire Merchants Agree to Disclose Data While those 8 cos push back, 3 other distribs decided to cooperate with SGWS, new filings reveal. Huge PacNW total bev wholesaler Columbia, WA-based AB house Olympic Eagle and NY wine & spirits distrib Empire Merchants each compromised with SGWS, which cited a "collaborative and effective" negotiation. They're working to deliver data on their top wine & spirits brands to their top competitor, tho a more limited set than Southern initially sought, the filings suggest.Kroger, Albertsons Ask Ct to Block SGWS from FTC Docs on Proposed Merger Meanwhile, the fed ct in CA handling the suit must referee a separate dispute over documents linked to the blocked merger between Kroger and Albertsons. Those retailers weighed in recently as well. And neither want the FTC to turn over those docs to SGWS, largely agreeing with the agency's arguments that the info isn't necessary or legally relevant. Kroger pointed out that it already supplied a bunch of info to the FTC when the agency was still investigating SGWS in Feb 2023 and will turn over more in response to an FTC subpoena from last summer.Southern responded to these retailers last wk as well. Of keen interest to the co is an analysis of "diversion," or info showing where consumers would shop instead if a given retailer's prices went up. Generally, the co brushed aside the retailers' complaints, especially about the burden of the request, which "is magnitudes less burdensome than the discovery directly sought by the FTC against third parties, including Kroger and Albertsons, in this case." Yesterday, the distrib also dismissed concerns by commenting that it already turned over 33.4 mil pages to the FTC. For its part, the FTC pointed to a separate 9th Circuit decision this wk that aligns with its position.FTC Subpoenaed Slew of Top Retailers, Too Speaking of the FTC's subpoenas, while SGWS formally sought data and docs from distribs, the agency made requests of retailers. The FTC already dug into the data of these grocers and others, especially Total Wine & More, during lengthy investigation prior to filing suit against Southern. Last summer, the FTC subpoenaed some of the same cos and others as part of this dispute, recent filings show. It seeks info from Walmart, Costco, Total Wine, Target, Trader Joe's, Kroger and Albertsons, plus major TX-based retailers H-E-B, Spec's and Twin Liquors, top Chi-town chain Binny's, sizable regional grocery WinCo and e-comm entity GoPuff.17 Mil Paired Transactions for 17K Products to 40K Retailers in 30 States; Huge Costs Again, "the breadth of SGWS's requests [of competing wholesalers] mirrors the wide scope of the FTC's allegation," the distrib reminded in filings last wk. The case hinges on alleged price discrimination in millions of sales of over 17K products to 10K locations of "favored" retailers compared to sales to 30K "disfavored" outlets in 30 states. But that list of 17 mil "paired transactions" could grow (or shrink), the agency confirmed with Southern. And if judges agree with SGWS, a truly dizzying array of data could be compiled to contest this suit.And the more data, the higher the cost. The sheer scale of the arguments made and information sought in this suit must be mirrored by its immense expense. Many high-powered lawyers have already worked many hours on the case, pushing likely legal fees for parties as well as third-parties into the millions. They can only grow from here.What Comes Next The discovery dispute between SGWS and 5 distribs now sits with a judge in CA, who will also make a call on the dispute over Kroger-Albertsons docs. The dispute with Hensley still awaits attention from a judge in AZ, while a judge in TX is now fully briefed on the dispute with Favorite Brands. A separate judge in TX awaits additional filings in the dispute with Mexcor. But this is all just part of a lengthy discovery phase of the underlying litigation with the FTC. Experts are set to get chosen in Sep and then there's a yr before the current trial date in Oct 2027, which could last anywhere from 12 to 35 days.

FTC v SGWS File Dump: 5 Distribs Unite Against Southern Subpoenas, 3 Comply; Grocers Weigh In

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