SUPPLIERS TO PAY $1.6M IN FINES
New York Attorney General Eliot Spitzer and State Liquor Authority Chairman Daniel Boyle have reached an agreement with 15 wine and spirits suppliers to reform marketing practices and pay $2.3 million in fines. The agreement follows a similar one reached in September with the eight largest wine and spirits wholesalers in New York who paid $1.6 million in costs.
Said Attorney General Spitzer:
"The result is that thousands of smaller stores, bars and restaurants will now be able to compete on a level playing field."
The investigation began in 2005 on the accusation that wholesalers and suppliers were offering incentives to liquor stores, bars and restaurants to reward favored customers and influence purchasing decisions, which is in violation of the New York’s Alcohol Beverage and Control Law. The inducements included deeply discounted or free products, gifts and cash payments to favored retailers and bar owners, which added up to approximately $9 million from 2003 to 2005.
Under the agreement, the suppliers must cease from making any illegal incentives, and are prohibited from financing illegal conduct by wholesalers. The wine and spirits companies entering the agreement include: Bacardi U.S.A, Banfi Products Corporation; Brown-Forman; Constellation; Diageo North America; E & J Gallo; Future Brands; Absolut Spirits Company; Jim Beam Brands Co.; Kobrand Corporation; Moet Hennessey USA.; Pernod Ricard USA; Remy Cointreau USA.; Sidney Frank Importing Co.; Skyy Spirits.
An investigation of the retail sector of the industry is continuing.
Said Attorney General Spitzer:
"The result is that thousands of smaller stores, bars and restaurants will now be able to compete on a level playing field."
The investigation began in 2005 on the accusation that wholesalers and suppliers were offering incentives to liquor stores, bars and restaurants to reward favored customers and influence purchasing decisions, which is in violation of the New York’s Alcohol Beverage and Control Law. The inducements included deeply discounted or free products, gifts and cash payments to favored retailers and bar owners, which added up to approximately $9 million from 2003 to 2005.
Under the agreement, the suppliers must cease from making any illegal incentives, and are prohibited from financing illegal conduct by wholesalers. The wine and spirits companies entering the agreement include: Bacardi U.S.A, Banfi Products Corporation; Brown-Forman; Constellation; Diageo North America; E & J Gallo; Future Brands; Absolut Spirits Company; Jim Beam Brands Co.; Kobrand Corporation; Moet Hennessey USA.; Pernod Ricard USA; Remy Cointreau USA.; Sidney Frank Importing Co.; Skyy Spirits.
An investigation of the retail sector of the industry is continuing.
posted at 1:49 PM
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