According to the NJABC press release, among other things, “the investigation found that the wholesalers – which together account for approximately 70% of all wine and 80% of all spirits sold at wholesale in the State – unfairly favored 20 of the State’s largest wine and spirits retailers and put smaller retailers at a competitive disadvantage by manipulating the retailer incentive program (RIP), granting credit extensions and interest-free loans, and engaging in other discriminatory practices.”   For the full release, click here.

The New York State Liquor Authority (SLA) fined two liquor stores $20,000 each for cooperative buying. The stores are owned by a husband and wife, each owning one store.  New York rules prohibit joining together to purchase products at a reduced, volume discounted price. A clip from the hearing is available here and worth watching: SLA Co-Op Clip As you will see from the video, many members of the SLA wanted to cancel both licenses. However, it was noted that the couple fully cooperated with the SLA and this was their first infraction. In the end, the SLA balanced its desire to send a strong message with the desire to encourage cooperation and settled on a $20,000 fine per store.

Celebrity chef Mario Batali will temporarily close the wine store at his Italian market, Eataly, for six months and pay a $500,000 fine to the New York State Liquor Authority (“SLA”) as part of a settlement with the SLA. Some of Batali’s business partners in this and other SLA licensed locations also own an interest in an Italian winery. It is a tied house violation when a manufacturer owns an interest in a retailer.