The ramp up in investigations of illegal trade practices on the part of the TTB has in great part been made possible by the 2017 Congressional cash infusion of $5 million dollars that was given to the department specifically to enforce trade practices, says Tom Hogue, the TTB's director of congressional and public affairs. Elgin declined to comment for this story. Related stories:Ĭourt Battle Crucial for Interstate Wine ShippingĮlgin was identified by the TTB as not only having participated in a prohibited practice called exclusive outlet – in which a wholesale pays a retailer to carry their product exclusively instead of that of competitors – but also having an issue with "failing to timely report a change in ownership and control", according to the TTB press release. On November 15, the Illinois-based Elgin Beverage Company paid $325,000 to the TTB in order to be pardoned for making a $10,000 payment to multiple retailers though a third-party marketing company to carry and promote its malt-beverage brands to the exclusion of competing brands, according to a TTB press release. ![]() ![]() ![]() The Tied House Laws were instated to make sure no one tier of the wine business has undue influence on another. | The Elgin Beverage Company has taken full responsibility for bending the rules.Īs the Washington DC-based Alcohol and Tobacco Tax and Trade Bureau (TTB) ramps up its trade practice-enforcement investigations, more wholesalers are appearing on their radar for foul play and Tied House infractions.
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