The Alcoholic Beverage Control Division fined two of New Jersey’s largest alcohol wholesalers – Allied Beverage Group and Fedway Associates – $ 4 million each for engaging in discriminatory business practices that unfairly favored their more large retail customers. In addition, 20 retailers statewide will pay a total of $ 2.3 million for their share in the illegal scheme.
ABC’s two-year survey found that wholesalers, who make up about 70% of all wine and 80% of all spirits sold wholesaled in the state, have unfairly favored 20 of the largest wine retailers and New Jersey spirits and have placed small retailers in a competitive position. disadvantage. The two wholesalers, who were affected by fine record, manipulated the Retail Incentive Program (PIR), granting credit extensions and interest-free loans, and engaging in other discriminatory practices.
“Put simply, Allied Beverage Group and Fedway Associates have rigged the market in favor of a handpicked group of powerful retailers, leaving small businesses struggling to compete,” Attorney General Gurbir S. Grewal said, adding : “This regulation sends a clear message that we will not tolerate this manipulative and anti-competitive behavior. “