Items of Value-What can a brewery give to a retailer?

*Please keep in mind that this is information is specific to North Carolina law. Contact an attorney in your state to find out specific information about this.
*This information is provided by the NC Craft Brewers Guild. Read the original article here.
The information for this blog is found on Brewer Advisory: Legislature Passes ABC Omnibus Legislation by Laura Collier and posted by the NC Craft Brewers Guild. Laura Collier is the legal advisor for the NC Guild, and her contact information is below.

N.C. Gen. Stat. §18B-1116(a)(3) prohibits a NC brewery from giving any alcohol retailer any money, service, equipment, furniture, fixtures, or things of value. But what does that mean? What is a thing of value? 14B N.C. ADMIN. CODE 15C .0709(a) specifically lists some expectations that a brewery can give to an alcohol retailer.
Note: a retailer includes any owner, officer, employee, or agent of a retailer.

Items/Things of Value

Breweries cannot:
• Give cash, a bonus, salary payments, compensation, etc. to a retailer or a retail association
• Give a gift to a retailer
• Finance trips to a retailer
• Give appliances to a retailer
• Give or finance an automobile for a retailer
• Give, sell, rent, or loan outside signs to a retailer
• Cannot advertise in a retailer publication or periodical
• Give, finance, sell, rent, or loan equipment, furnishings, or fixtures to a retailer
o Equipment includes: draft beer boxes, dispensing equipment, sinks, dishwashers, etc.
• Cannot advertise on behalf of a retailer*
• Cannot promote a retailer in advertising*
• Cannot pay a third party for advertising for a retailer*
• Cannot participate with a retailer in advertising*
• Cannot work with the retailer to advertise alcohol or the retailer’s business*
• Cannot customize certain advertising materials, such as glassware or product* displays with the retailer’s name/logo*
• Cannot offer a product exclusively to one retailer*

* Remember: according to the TTB social media = advertising

Breweries CAN:
• Give, sell, rent, or loan samples not exceeding 3 gallons per brand of beer to a retailer
• May give, sell, rent, or loan recipes, booklets, or brochures for beer pairings with food
• Give beverage lists or table tents to a retailer that does not include the retailer’s name/logo
• Give consumer specialties to a retailer for distribution to consumers. The products cannot display the retailer’s name/logo. For example,
o Can openers
o Ash trays
o Shopping bags
o Can coolers
o Hats
o Visors
o Key chains
o T-shirts
• Some point of sale advertising is allowed but cannot be customized for a retailer. For example:
o Clocks
o Lamps
o Lighted displays
o Blackboards
o Dart board backgrounds
o Menu & price boards
o Calendars
o Mirrors
• Can clean a retailer’s coils
• Can participate in a tasting on the retailer’s premise

The list below are things of value and may be provided to retailers in certain situations

A brewery can (in limited circumstances):
• Give, sell, loan, or rent to retailers advertising specialties only if the total value does not exceed $300 per year
o Retailer advertising specialties cannot be customized for a retailer
• Can offer a discounted or promotional price to all retailers, but no volume discounts to retailers
• Can give product displays to a retailer but only if the value of the display items doesn’t exceed $160
• Can sell unbranded glassware or cups to a retailer, but cannot be customized with the retailer’s name/logo
• Can sell ice to a retailer
• Can sell beer tapping accessories to a retailer
• Cannot give, sell, rent, or loan clothing to a retailer BUT ONLY if the clothing items are hats, caps, visors, or t-shirts and IF the items are given to the retailer for distribution to the customer

 

Contact us!

If you have any questions please do not hesitate to email me at john@beerlawcenter.com or call 919-335-5291.

Be sure to check out Beer Law Center and Matheson & Associates PLLC for all things NC legal.

Contact the NC Craft Brewers Guild:
https://ncbeer.org/

Contact Laura Collier
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