Kroger May Have Opened Pandora’s Box

As we've reported this week, the TTB's recent clarification and FAQ on the FAA Act's tied house law and its exemptions suggests that much of today's category management practices are for all intents and purposes illegal. The question is whether the agency plans to actively investigate this issue on a large scale. If they do, this scheme by Kroger and Southern Wine & Spirits may have opened Pandora's Box, and what we could end up with is a much narrower definition of what is allowed under federal category management rules than the industry has heretofore been practicing. Which to me could be a good thing.

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