Online alcohol marketplace Provi settles antitrust lawsuit against Southern Glazer’s

By Mike Scarcella

Oct 15 (Reuters) - Online wholesale alcohol platform Provi has settled its federal antitrust lawsuit accusing Southern Glazer’s, the largest U.S. distributor of wine and spirits, of stifling competition.

In a statement on Wednesday, Provi said it resolved the case in the federal court in Chicago, and that its marketplace is now a permitted ordering method for Southern Glazer’s products.

The settlement with Southern Glazer’s marks the end of a closely watched legal fight over competition in the alcohol distribution industry.

Provi filed the lawsuit in 2022, alleging that Southern Glazer’s, and fellow distributor Republic National Distributing interfered with its plan to create a “one-stop-shop” connecting buyers, distributors and suppliers.

The complaint said the two defendants, which operate rival e-commerce platforms, violated antitrust law by blocking orders placed through Provi, causing loss of sales and higher prices across the industry.

Provi had said its growth threatened the defendants’ control of the nation’s alcohol distribution.

Provi settled with Republic National in July, announcing what they described as a mutually beneficial collaboration.

Republic and Southern Glazer’s have denied any wrongdoing.

Southern Glazer’s and Republic had sought to dismiss the case, arguing Provi’s claims failed to meet basic standards for antitrust lawsuits.

But U.S. District Judge Nancy Maldonado last year allowed the case to proceed, finding Provi had sufficiently alleged “direct evidence of defendants’ monopoly power.”

The case is Tiz Inc v. Southern Glazer’s Wine and Spirits LLC et al, U.S. District Court for the Northern District of Illinois, No. 1:22-cv-01648.

For Provi: David Cross of Morrison & Foerster

For Southern Glazer’s: James Mutchnik of Kirkland & Ellis

For Republic National: Richard Krumholz of Norton Rose Fulbright