Shockwaves sent through the Liquor system, the Provi lawsuit and its potential impact

Irish Liquor Lawyer ^ | 01 april 2022 | Sean O'Leary

[ptsal]

This week shockwaves were sent through the liquor legal world when Privo filed an antitrust lawsuit against Southern Wine and Spirits (Southern) and Republic National Distributing Company (RNDC). The complaint takes aim at alleged anti-competitive behavior of Southern and RDNC acting together to destroy Provi’s business and create their own model based on Provi’s success.

It shines a light on the concept of wholesalers behaving badly in the marketplace.

[snip] Provi, started in 2016, gained momentum with its great and convenient service and signed up national accounts such as Chili’s, Red Robin, Benihana, P.F. Chang’s, Cinemark and AMC Theatres.

[ptsal]

Provi’s complaint is not a fly by night complaint that should not be dismissed out of hand. There are serious allegations made with evidence of emails and statements to support the assertions. The devil is in the details, but legal discovery will uncover the salacious details such as whether Southern and RDNC worked in collusion to shut Provi out of the marketplace.

Lawyer retirement plan.

[nicollo]

Speaking of Irishmen and liquor... do the Kennedys still get a cut on Scotch sales in the US?

[texas booster]

Shockwaves indeed.

Who knew that the Irish had lawyers?

I always thought that they had enforcers names Lefty.

[who_would_fardels_bear]

The real shock is that three major companies involved in the distribution of alcohol are anonymous. Who’s heard of any of these companies? It’s as bad as the media biz where mega multinational conglomerates who have no business running such companies own and control them.

[Cletus.D.Yokel]

Joe ran Canadian Whisky along the East Coast.

[The Great RJ]

Liquor wholesalers in most states have been a concentrated oligopoly assisted by Prohibition era state liquor regulations that discouraged competition in an effort to control drinking. In some states e.g. Iowa the state itself is the wholesaler. The wine and spirits industry has changed considerably since Prohibition times and there is a growth of small brewers, wine makers and distillers who in many states must use state approved wholesalers to gain distribution beyond their facilities. These small producers are at a significant disadvantage. I’m hoping this lawsuit will end the anti competitive practices that are the lasting vestiges of Prohibition.