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TTB Press Releases

Print Version
September 5, 2018
For Immediate Release

Office of Congressional and Public Affairs
202-453-2180

TTB Trade Practice Investigation Identifies Wholesaler Operating Without a Permit

FY—18—08

Washington, D.C. — On August 29, 2018, TTB informed Skokie Valley Beverage Company, a Wheeling, Illinois, alcohol beverage distributor, that it does not currently hold a valid wholesaler basic permit due to unreported changes in ownership and control, and that continued operations without a valid permit may constitute a criminal offense under Title 27 USC 207.

Skokie Valley Beverage Company’s lack of a valid basic permit came to light subsequent to joint operations that TTB conducted with the Illinois Liquor Control Commission in September 2017.

TTB’s trade practice investigation revealed evidence that Skokie Valley Beverage Company had violated the tied house provisions of the FAA Act by allegedly providing an unlawful inducement to retailers through a third party. Specifically, TTB contends that Skokie Valley Beverage Company paid a slotting allowance for placement of their malt beverage brands on draft at three retail locations. TTB believes this unlawful inducement resulted in the exclusion of products sold by Skokie Valley Beverage Company’s competitors. Skokie Valley Beverage Company has not admitted to these allegations.

TTB reminds industry members with FAA Act basic permits that they are required to file amended applications when there are changes in ownership and control, and that permits terminate automatically 30 days after unreported changes in ownership and control.

Please visit www.ttb.gov for additional information on prohibited trade practices.

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Page last reviewed: August 23, 2018
Page last updated September 19, 2018
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