Southern Glazer's Wine & Spirits (Southern Glazer's), the preeminent total beverage distributor, has reached a resolution with the U.S. Department of Justice and the Alcohol and Tobacco Tax and Trade Bureau (TTB) related to a previously disclosed investigation involving former employees. The investigation focused primarily on activities which occurred many years ago. As part of the resolution, the Department of Justice has entered into a non-prosecution agreement with the Company and the TTB has agreed to take no action against the Company for the conduct involved in the investigation.

The Company cooperated fully with authorities throughout the investigation and accepts responsibility for the conduct and lapses acknowledged in the NPA. The agreement explicitly credits the significant investments the Company has made to strengthen its compliance program over the past several years. These efforts included augmented and reorganized staff, new procedures and policies, proactive monitoring and auditing, and strong internal enforcement. These enhancements reflect Southern Glazer's ongoing commitment to conducting business with integrity and in full compliance with the law. The agreement also acknowledges the Company’s efforts to expressly align its compliance program to the factors set forth in the DOJ's guidance for evaluating corporate compliance programs.

“We have always had an industry-leading compliance program, and we have redoubled our efforts to make our compliance program an example for any Company, within our industry or otherwise,” commented Wayne E. Chaplin, President & Chief Executive Officer, Southern Glazer's.

The NPA includes a monetary payment of $12.5 million and other obligations over the next two years.

The misconduct at issue involved former employees who took steps to circumvent compliance controls and policies, including submitting fraudulent documentation through third parties. The Company has put in place various measures designed to detect and deter such conduct going forward.

Chaplin added, “This conduct does not reflect Southern Glazer's values, culture, or standards and it will not be tolerated. Our success has always been built on winning the right way. 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.”

About Southern Glazer’s Wine & Spirits

Southern Glazer’s Wine & Spirits is the preeminent total beverage distributor, building brands for moments that matter. Southern Glazer’s will adopt the Southern Glazer’s Beverage Company name companywide in 2027. The multi-generational, family-owned Company has operations in 47 U.S. markets and Canada, as well as brokerage operations through its Southern Glazer’s Travel Retail Sales & Export Division in the Caribbean, Central and South America. In 2026, Southern Glazer’s was recognized by Newsweek as one of America’s Greatest Workplaces for Culture, Belonging & Community. In 2025, Southern Glazer’s was recognized by Newsweek as one of America’s Greatest Workplaces for Diversity and America’s Greatest Workplaces for Women. Southern Glazer’s urges all retail customers and adult consumers to market, sell, serve, and enjoy its products responsibly. For more information visit www.southernglazers.com. Follow us on Facebook, X and Instagram @sgwinespirits.

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Southern Glazer's has reached a resolution with the U.S. Department of Justice and the Alcohol and Tobacco Tax and Trade Bureau (TTB) related to a previously disclosed investigation involving former employees.