| September 10, 2026 For Immediate Release | Office of Congressional and Public Affairs 202-453-2180 |
TTB Trade Practice Investigation into Commercial Bribery Results in $12.5 Million Payment
Southern Glazer’s Wine and Spirits, LLC Held Accountable for using Third Party Affiliates and False Invoicing in Pay to Play Scheme
FY—26-2
San Francisco – The United States Attorney’s Office for the Northern District of California announced today that Southern Glazer’s Wine and Spirits, LLC has entered into a non-prosecution agreement with the government requiring the payment of $12.5 million in monetary penalties for bribing employees of alcohol retailers, including chain grocery stores, to induce them to purchase alcohol distributed by Southern Glazer’s Wine and Spirits, LLC.
Several Southern Glazer’s executives, including several Vice Presidents, were directly involved in the bribery scheme and participated in falsification of documents to conceal it. The scheme, which used third-party vendors to generate false invoices to conceal the flow of money from Southern Glazer’s included cash, prepaid gift cards, flights, golf trips, resort stays, and luxury goods.
This case serves as an important reminder that industry members are accountable not only for their own conduct, but also for the actions taken on their behalf by third party affiliates. Third parties, likewise, are responsible for any illegal activities they carry out on behalf of an industry member.
TTB takes trade practice enforcement seriously and will continue to actively pursue trade practice violations to ensure that law abiding businesses do not lose competitive ground because of the illegal actions of a few. No one should have to pay to play. If you are aware of unlawful trade practices, please report them by email at TradePractices@ttb.gov.
This case was investigated by TTB and IRS-CI and was supported by the Treasury Executive Office for Asset Forfeiture (TEOAF).
A copy of the DOJ press release, which provides more detailed information, including the non-prosecution agreement, is available here on the United States Attorney's Office for the Northern District of California website.