News TTB Investigation Results in $850,000 Offer in Compromise from Chicago Beer Wholesaler

The TTB has accepted an $850,000 Offer in Compromise from RN Acquisition (doing business as Lakeshore Beverage) in Chicago alleging that the beer wholesaler violated federal tied house provisions.

In a press release the TTB alleged that Lakeshore violated the Federal Alcohol Administration (FAA) Act’s tied house prohibition by inducing a retailer to purchase their beverage products to the exclusion of competitor brands by paying sponsorship funds to a third-party concert promotion company commonly owned and/or managed by the retailer’s owner.

Additionally, the TTB alleged that the company violated tied house provisions by providing various trade items to a retailer at below-market value, which induced the retailer to purchase their beverages to the exclusion of competitor brands.

TTB press release here.

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