Nearly 2.5 months after RNDC reached a settlement with Provi, Southern Glazer’s Wine & Spirits (Southern) has decided to finally come to the table.
What made Southern fold their hand and succumb to defeat is subject to speculation?
Provi and Southern reached a resolution in their multi-year fight over a lawsuit filed by Provi against Southern. Provi claimed that Southern’s actions excluding Provi from the marketplace constituted violations of the Sherman Anti-Trust Act.
Under the agreement Provi and Southern agreed to an integration allowing retailers to place orders through Provi’s platform. Retailers will now be able access Southern’s portfolio via Provi.
This represents a great victory for Provi who in 2022 took on the two largest liquor wholesalers in the country RNDC and Southern Glazer and sued them both for violations of the Sherman Anti-Trust Act amongst other claims.
Generally, in wholesaler related lawsuits, the wholesalers with deeper pockets and greater resources overwhelm opponents, even when those opponents have a strong case.
But in this situation, Provi had a great legal team and the resources to fight. Even with a strong hand to play, Provi had to wait three years for an agreement.
It is a great day for free markets when a business that tried so hard to exclude another business from the marketplace is forced to change its modus operandi from market exclusion to market inclusion.
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