Southern Glazer’s to Pay $12.5 Million to Resolve Bribery Investigation with the DOJ

On Thursday, alcohol distributor Southern Glazer’s announced that it reached a resolution with the United States Department of Justice (DOJ) and the Alcohol and Tobacco Trade Bureau (TTB) in a longstanding investigation related to improper payments and bribery. In the deal, Southern agreed to pay $12.5 million. With this resolution the DOJ has entered into a non-prosecution agreement with the distributor, and the TTB agreed to take no further action regarding this case.

Last year, the U.S. government opened a federal investigation into the distributor regarding misconduct that occurred from 2016 to 2024. Former employees allegedly handed out cash payments, gift cards, luxury goods, golf trips, flights, and resort bookings for retailers in California for better shelf placement of Southern Glazer’s products and other benefits in return. The DOJ also says the company took out false invoices to conceal the payments.

“We are gratified to resolve the investigation in this fashion, and to be able to focus on earning the trust of our customers, supplier partners, and employees through ethical business practices, strong compliance oversight, and accountability at every level of the organization,” Southern Glazer’s president and chief executive officer Wayne Chaplin said in a statement released on Thursday evening.

In addition to the $12.5 million payment, Southern Glazer’s agreed to reinforce the company’s internal guardrails to prevent future misconduct. In the release, the company stated it had already made inroads to improve its TTB compliance after the federal investigation surfaced and prior to reaching the agreement. Southern Glazer’s claims it bolstered its staff and implemented proactive auditing, among other measures. The statement also suggests the non-prosecution agreement includes “other obligations over the next two years,” though the company did not disclose what those entail.

“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,” Anthony P. Gledhill, assistant administrator of field operations for the TTB said in a statement from the DOJ. “Third parties, likewise, are responsible for any illegal activities they carry out on behalf of an industry member.”

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