Wednesday, September 13, 2006

SOUTHERN LOOKING TO MOVE INTO TEXAS

Southern Wine & Spirits has taken issue with a Texas law that requires owners of distributors (or 51% of the company) to live in the state for at least one year before a license or permit can be granted. As the largest wine and spirits wholesaler in the U.S., Southern is apparently eager to enter the Texas market where Texas-based Glazer’s currently holds the number one spot.

Southern filed a federal lawsuit Monday asking the court to permanently prevent the commission from enforcing the local-ownership rule and to enter a judgment that is unconstitutional under the Constitution’s Commerce Clause.

Ironically, there were reports that Southern was in talks with Glazer’s months ago, but those plans have reportedly stalled according to the Dallas Morning News. Rumors, however, that Glazer’s and Charmer are in talks continue to circulate.