On Thursday, alcohol distributor Southern Glazer’s announced that it reached a resolution with the United States Department of Justice (DOJ) and the Alcohol and Tobacco Trade Bureau (TTB) in a longstanding investigation related to improper payments and bribery. In the deal, Southern agreed to pay $12.5 million. With this resolution the DOJ has entered into a non-prosecution agreement with the distributor, and the TTB agreed to take no further action regarding this case.
Last year, the U.S. government opened a federal investigation into the distributor regarding misconduct that occurred from 2016 to 2024. Former employees allegedly handed out cash payments, gift cards, luxury goods, golf trips, flights, and resort bookings for retailers in California for better shelf placement of Southern Glazer’s products and other benefits in return. The DOJ also says the company took out false invoices to conceal the payments.
