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TTB fines a Florida wholesaler $1.5 million for alleged pay to play scheme

December 10, 2018Chris Crowell

TTB has accepted a $1.5 million offer in compromise from QAC, LLC, which does business as Eagle Brands and is a wholesaler in Miami for alleged violations of the trade practice provisions of the Federal Alcohol Administration Act (FAA), specifically pay-to-play schemes. This is the largest single offer in compromise that TTB has ever accepted.

Eagle Brands claims to be an independent wholesaler but was once owned by Anheuser-Bush, and as often seems to be the case, that’s pretty much all it is distributing these days too. It has a few local craft brands, but that craft list is mostly filled out with AB InBev owned brands. The TTB is alleging Eagle Brands paid retailers to carry and promote its products to the exclusion of competing products and hid those payments as banquet events, credit card payments for rebates or consumer samplings. TTB also alleges that Eagle Brands employees provided retailers with draft systems that were to be used exclusively for Eagle Brands products.

While it is good to see the TTB stay watchful for this type of anti-competitive activity, we agree with this tweet from Kimberly Clements (@KCbeerchick):

Dear TTB,
I’ve been reading about a lot about #paytoplay activity & the million dollar fines you’ve been handing out (good job btw). In addition to the fines, may I suggest suspending licenses? That’s gonna leave a mark & change behavior.

— Kimberly Clements (@KCbeerchick) December 7, 2018

Cropped shot of male hand holding beer bottle & national flag of USA against setting sun. River background. Happy independence day
TTB proposes some welcome changes to Brewer’s Notices
TTB application process
TTB might eliminate standards of fill for wine, distilled spirts
TTB COLA label warning
TTB labeling tip: Never change the GOVERNMENT WARNING
craft beer regulations
TTB eases some alcohol labeling regulations

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  1. Andrew Cameron-Walter says

    December 10, 2018 at 11:29 am

    Ed Moreno

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