• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • About Craft Brewing Business

Craft Brewing Business

Professional Insight, Unfiltered

Craft Brewing Business Craft Brewing Business
  • News
  • Business & Marketing
  • Packaging & Distribution
  • Equipment & Systems
  • Ingredients & Supplies
  • Webinars & White Papers
  • News
  • Business & Marketing
  • Ingredients & Supplies
  • Packaging & Distribution
  • Equipment
  • Webinars & White Papers
  • COVID-19

Proposal to restrict beer sales territory opposed by Alabama Brewers Guild

December 2, 2013Chris Crowell

Alabama craft beer guild
The Alabama Alcoholic Beverage Control Board is considering a proposal to adopt Rule No. 20-X-8-.13, addressing requirements for assignment of sales territories for alcoholic beverage brands and brand extensions. The Alabama Brewers Guild opposes the proposal and has sent a letter to the ABC Board urging them to reject it. The ABC Board is expected to decide on the proposal in December.

Alcoholic beverages are a highly-regulated product, and businesses entering into this industry accept that. However, the Alabama Guild believes this is not a regulation to benefit the public. If accepted, it would use the police power of the state to benefit one class of business at the expense of another.

Under current law, a brewery must sign an exclusive territorial agreement with an independent, licensed wholesaler for each of its brands. This is an aspect of the three-tier system, which the guild respects as a valid means of regulating alcohol in Alabama.

Also under current law, the state severely restricts a brewery’s ability to terminate an existing territorial agreement with its wholesaler. This greatly diminishes the negotiating power of the brewer in its business relations with their wholesalers.

The proposed rule would extend these “lifetime territorial agreements” to not only include the specified brand, but also all “extensions” of the original brand. The term “brand extension” is vaguely defined and could easily be construed to include the entire portfolio of most breweries. While it is a common practice for a brewery to use a single wholesaler for their entire portfolio, the Guild opposes the use of the police power of the state to enforce this type of relationship.

The Guild does not believe the proposal is supported by most wholesalers. Dan Roberts, executive director of the Alabama Brewers Guild, stated, “We have a developing relationship with the wholesalers in Alabama, and they are not pushing for this as a group. We feel confident the ABC will reject the Proposed Rule for the reasons we outlined in our letter.”

The Guild’s opposition is available online here.

New York craft beer
New York eases regulations on craft brewing industry
Five Texas craft brewing bills signed, opportunities abound in Lone Star State
Hawaiian Craft Brewers Guild
Better know a craft guild: Hawaii battles ‘faux Hawaiian’ labeling
State regulation, taxes top National Beer Wholesalers Legislative Conference

Reader Interactions

Leave a Reply Cancel reply

You must be logged in to post a comment.

Primary Sidebar

Latest News

  • Anderson Valley Brewing promotes price stability amid Big Beer price hikes: ‘We actually like our customers’
  • Ohio how has 400 craft breweries! Here are some other Buckeye beer stats to know
  • IBA hits milestone – 1 million bbls of buying power – what’s next for the co-op?
  • Plastic can carrier recycling co-op debuts in Chicago

Sign up for our newsletter

unsubscribe from list

Most Popular Today

Recent Features

  • The-IBA-TeamIBA hits milestone – 1 million bbls of buying power – what’s next for the co-op?
    May 19, 2022
  • 2022 beer branding trends part 1: reinvention
    May 17, 2022
  • satisfaction surveysAre brewery employees happy? Depends on the department
    May 16, 2022
  • Male hand closes hatch of brewery tankUnfiltered: Do I need to clean tanks between transfers?
    May 11, 2022
  • Hard seltzers: Achieve high alcohol fermentations in a clean and neutral way with the proper nutrient aids
    May 9, 2022
  • Paxton Products uses air and ionization to rinse and dry beer bottles and cans
    May 9, 2022

Footer

  • Email Newsletter Sign Up
  • About Craft Brewing Business
  • Contact Us
  • Advertise on Craft Brewing Business
  • Media Kit Download
  • Privacy and Terms

© 2022 · CBB Media LLC

Posting....