DEFINITION OF THE TERM "BRAND"
Proprietors of distilled spirits plants, bonded wine
cellars, taxpaid wine bottling houses; brewers; whole-
sale liquor dealers; importers; retail liquor dealers;
and others concerned:
Purpose. The purpose of this circular is to inform
you of a forthcoming ATF ruling concerning the meaning
of the term "brand" as used in 27 CFR 6.83, 6.85, and
6.91. These sections are part of ATF's recently adopted
trade practice regulations under the Federal Alcohol
Administration Act, T.D. ATF-74, effective November 24,
1980. The ATF ruling will read as follows:
"The Bureau of Alcohol, Tobacco and Firearms has
received a number of inquiries regarding the meaning of
the term 'brand' as used in 27 CFR 6.83, 6.85, and 6.91.
The term 'brand' is used in these regulations to differ-
entiate between various wine, distilled spirits, and
malt beverage products. Each of these regulatory sec-
tions permits industry members to furnish certain things
of value to retailers subject to dollar or quantity
limitations which are established on a per-brand basis.
"Section 5(b)(3) of the Federal Alcohol
Administration Act (27 U.S.C. 205(b)(3)) makes it
unlawful, under certain jurisdictional limitations, for
producers, importers, or wholesalers of distilled
spirits, wine, or malt beverages to induce any retailer
to purchase products to the exclusion, in whole or in
part, of products sold or offered for sale by others in
interstate or foreign commerce, by furnishing, giving,
renting, lending, or selling to the retailer, any equip-
ment, fixtures, signs, supplies, money, services or
other thing of value, except as permitted by regulation.
"Regulations appearing at 27 CFR 6.83, 6.85, and
6.91 provide exceptions from section 5(b)(3) for product
displays, retail advertising specialties, and product
samples, respectively.
"Section 6.83 provides an exception from section
5(b)(3) for product displays. Product displays are
wine racks, bins, barrels, casks, shelving and the like
from which distilled spirits, wine, or malt beverages
are displayed and sold. To qualify for the exception
provided by section 6.83, the product display must bear
conspicuous and substantial advertising matter.
Further, an industry member may furnish product displays
to a retailer which are valued at not more than $100 per
brand in use at any one time.
"Section 6.85 provides an exception from section
5(b)(3) for retailer advertising specialties such as
trays, coasters, mats, menu cards, meal checks, napkins,
etc., which bear advertising matter and which are
primarily of value to the retailer as point of sale
advertising matter. The value of all retailer adver-
tising specialties furnished by an industry member to a
retailer may not exceed $50 per brand per calendar year.
"Section 6.91 provides an exception to section
5(b)(3) for samples of wine, distilled spirits, or malt
beverages which an industry member may furnish to a
retailer. Industry members may furnish a sample to a
retailer who has not previously purchased that brand
from that industry member. Quantity limitations are
placed on the size of samples which may be furnished to
retailers.
"HELD, in sections 6.83, 6.85, and 6.91, the term
'brand' refers to differences in brand name of a pro-
duct, differences in nature of a product, or differences
in color or design of a label. Thus, examples of
different brands would be products having a different:
brand name; class, type, or kind designation; appella-
tion of origin (wine); viticultural area (wine); vintage
date (wine); age (distilled spirits); proof (distilled
spirits); or label design or color. Differences in
packaging such as a different style, type, or size of
container are not considered different brands."
Inquiries. Inquiries regarding this circular should
refer to its number and be addressed to the Assistant
Director (Regulatory Enforcement), Bureau of Alcohol,
Tobacco and Firearms, 1200 Pennsylvania Avenue, NW,
Washington, DC, 20226.
Director |