Long Branch, Eatontown Liquor Stores Must Pay $90,000 Fines

LONG BRANCH, NJ — Both the Long Branch and Eatontown locations of Vingo Wine & Spirits must each pay $90,000 fines to the state to resolve findings from the New Jersey Attorney General that they engaged in unfair trade practices with two of New Jersey's biggest liquor wholesalers.

This comes as part of a sweeping two-year investigation done by the state Attorney General and Division of Alcoholic Beverage Control (ABC). As a result of the investigation, twenty liquor stores across New Jersey agreed to pay the hefty fines, including Joe Canal's, and Vingo's locations in Long Branch, at the Eatontown Pathmark plaza, Old Bridge, Aberdeen and Atlantic Highlands.

The ABC said if the liquor stores did not pay the fine, they risked losing their license.

The state's two biggest liquor wholesalers, Allied Beverage Group and Fedway Associates, will pay the biggest fines, an unprecedented $4 million each. Allied Beverage Group and Fedway Associates also agreed to change their business practices.

The investigation found that the wholesalers — which together account for approximately 70 percent of all wine and 80 percent of all spirits sold at wholesale in New Jersey — unfairly favored 20 of the state's largest liquor stores, such as Joe Canal's and Vingo's, and put smaller liquor stores at a competitive disadvantage.

They did this by manipulating the retailer incentive program (RIP), granting credit extensions and interest-free loans, and engaging in other discriminatory practices, said the AG.

"Simply put, Allied Beverage Group and Fedway Associates rigged the market in favor of a handpicked group of powerful retailers, leaving smaller businesses struggling to compete," said Attorney General Gurbir Grewal. "This settlement sends a clear message that we will not tolerate this manipulative and anti-competitive behavior."

The RIPs provide cash rebates payed to retailers by wholesalers for purchasing certain quantities of alcoholic beverages. ABC regulations control the program by making RIPs available to all retailers on a non-discriminatory basis, by keeping the RIP payments to retailers relatively small, and by not allowing wholesalers to substitute RIPs for interest-free loans.

The investigation found that Allied Beverage Group and Fedway Associates were giving chosen retailers a financial advantage by issuing rebates more often and in greater amounts than allowed.

Various Joe Canal's locations in New Jersey will also be paying a $90,000 fine.

Consent order for Long Branch Vingo's: https://www.nj.gov/oag/newsreleases20/EcclipseLLC_Consent-Order.pdf

Consent order for Old Bridge Vingo's: https://www.nj.gov/oag/newsreleases20/Meritage-Wine-Cellars_Consent-Order.pdf

Consent order for Atlantic Highlands Vingo's: https://www.nj.gov/oag/newsreleases20/MM-Wine-Spirits_Consent-Order.pdf

Consent order for Aberdeen/Cliffwood Vingo's: https://www.nj.gov/oag/newsreleases20/Vinvigo-LLC_Consent-Order.pdf

Consent order for Eatontown Vingo's: https://www.nj.gov/oag/newsreleases20/SVGS_Consent-Order.pdf