Wholesale Pricing Practices and Restrictions

Beginning on January 1, 2017, a liquor-licensed drugstore shall not purchase alcohol beverages on credit.

Wholesalers may not sell below cost.

Beginning on January 1, 2017, a liquor-licensed drugstore shall not purchase alcohol beverages on credit.

Wholesalers may not sell below cost.

Beginning on January 1, 2017, a liquor-licensed drugstore shall not purchase alcohol beverages on credit.

Wholesalers may not sell below cost.

Wholesalers may not sell below cost.

Wholesalers may not sell below cost.

Wholesalers may not sell below cost.

Delaware law states that the Commissioner shall not control or regulate credit transactions to the extent they are permitted by federal law.

Delaware law states that the Commissioner shall not control or regulate credit transactions to the extent they are permitted by federal law.

Delaware law states that the Commissioner shall not control or regulate credit transactions to the extent they are permitted by federal law.

With respect to purchases of beer, if retailer owns more than one business and payment is made from a central office, credit may be extended for a period not to exceed five days after delivery and invoice.

All prices, discounts, or allowances offered by wholesalers shall be disseminated to customers in such a manner and for such a period of time to insure that customers are afforded reasonable opportunity to secure the discount. For dissemination purposes, the customer is anyone the wholesaler had sold alcoholic beverages to within the last 30 days. For purposes of this rule, a reasonable opportunity to secure the discount shall be presumed when offer is extended for not less than 7 days after dissemination of the price list.

All prices, discounts, or allowances offered by wholesalers shall be disseminated to customers in such a manner and for such a period of time to insure that customers are afforded reasonable opportunity to secure the discount. For dissemination purposes, the customer is anyone the wholesaler had sold alcoholic beverages to within the last 30 days. For purposes of this rule, a reasonable opportunity to secure the discount shall be presumed when offer is extended for not less than 7 days after dissemination of the price list.

All prices, discounts, or allowances offered by wholesalers shall be disseminated to customers in such a manner and for such a period of time to insure that customers are afforded reasonable opportunity to secure the discount. For dissemination purposes, the customer is anyone the wholesaler had sold alcoholic beverages to within the last 30 days. For purposes of this rule, a reasonable opportunity to secure the discount shall be presumed when offer is extended for not less than 7 days after dissemination of the price list.

The banning of volume discounts has been held to be a valid exercise of the police power of the state to regulate the sale of alcoholic beverages. See Manuel vs. State Office of Alcohol and Tobacco Control, 2007-1620 (La. App. 3 Cir. 4/30/08), 982 So.2d 316, writ denied, 2008-1061 (La. 8/29/08) 989 So.2d 107; La. Atty. Gen. Op. No. 09-0135 (2009).

The banning of volume discounts has been held to be a valid exercise of the police power of the state to regulate the sale of alcoholic beverages. See Manuel vs. State Office of Alcohol and Tobacco Control, 2007-1620 (La. App. 3 Cir. 4/30/08), 982 So.2d 316, writ denied, 2008-1061 (La. 8/29/08) 989 So.2d 107; La. Atty. Gen. Op. No. 09-0135 (2009).

The banning of volume discounts has been held to be a valid exercise of the police power of the state to regulate the sale of alcoholic beverages. See Manuel vs. State Office of Alcohol and Tobacco Control, 2007-1620 (La. App. 3 Cir. 4/30/08), 982 So.2d 316, writ denied, 2008-1061 (La. 8/29/08) 989 So.2d 107; La. Atty. Gen. Op. No. 09-0135 (2009).

With respect to purchases of beer, all counties require payment on delivery except Worcester County where 10 days of credit may be extended.

On September 27, 2007, the U.S. District Court for the District of Maryland found that Maryland’s wholesaler volume discounting and post-and-hold provisions, considered together, violate the Sherman Act’s ban on price fixing and are not protected by the 21st Amendment. TFWS, Inc. v. Schaefer, 2007 WL 2917025 (D.Md. Sept. 27, 2007). The Federal Court of Appeals (4th Circuit) affirmed. TFWS, Inc. v. Franchot, 572 F.3d 186 (2009).

With respect to purchases of wine and spirits, the Alcohol and Tobacco Tax (MATT) Regulatory Division posts a list of purchase periods and due dates that is accessible only to Maryland wholesalers and retail licensees.

On September 27, 2007, the U.S. District Court for the District of Maryland found that Maryland’s wholesaler volume discounting and post-and-hold provisions, considered together, violate the Sherman Act’s ban on price fixing and are not protected by the 21st Amendment. TFWS, Inc. v. Schaefer, 2007 WL 2917025 (D.Md. Sept. 27, 2007). The Federal Court of Appeals (4th Circuit) affirmed. TFWS, Inc. v. Franchot, 572 F.3d 186 (2009).

With respect to purchases of wine and spirits, the Alcohol and Tobacco Tax (MATT) Regulatory Division posts a list of purchase periods and due dates that is accessible only to Maryland wholesalers and retail licensees.

With respect to beer, prices may be decreased during the 90 day minimum hold period to meet a competing wholesaler’s price. The price reduction cannnot be greater on a cents-per-case basis than the price reduction filed by the competition and must continue for the balance of the 90 days filed by the competition.

Credit may be extended for a maximum of 30 days for on-sale retailers; no credit may be extended to off-sale retailers.

With respect to wine, prices filed shall not be changed during a quarterly period unless by written order of the commission. Approval for a price change shall not be granted for periods of less than 14 days.

Credit may be extended for a maximum of 30 days for on-sale retailers; no credit may be extended to off-sale retailers.

For wine, a variable volume price offered by a wholesaler to a retailer may not be for a quantity of more than 25 cases.

For spirits, a variable volume price offered by a wholesaler to a retailer may not be for a quantity of more than 25 cases.

Wholesalers may not sell below cost.

For sales of wine and spirits between January 1, 2003 and August 27, 2009, no discounts in excess of 4% for quantity or 1% for time of payment. After August 27, 2009, no discounts in excess of 1% for quantity or 1% for time of payment.

Wholesalers may not sell below cost.

For sales of wine and spirits between January 1, 2003 and August 27, 2009, no discounts in excess of 4% for quantity or 1% for time of payment. After August 27, 2009, no discounts in excess of 1% for quantity or 1% for time of payment.

Wholesalers may not sell below cost.

Wholesalers are required to make their current beer prices available to the commission in writing.

Wholesalers may not sell below cost.

Wholesalers may not sell below cost.

Wholesalers may not sell below cost.

Payment is required within 25 days from certain retail beer and wine licensees (i.e., those who purchase beer and/or wine for resale for on and off premises consumption but not including licensees who sell liquor and/or wine for off premises consumption).

Wine wholesalers are to include a 33.3% minimum markup.

Licensees must make beer price lists available for Commission inspection.

Although current law suggests that there is a 120-day hold on reducing prices posted by the wholesaler for distribution of beer, that rule is no longer legal nor being enforced as a result of an order on January 15, 1999, by Judge Richard Caputo of the United States District Court for the Middle District of Pennsylvania. The order granted a permanent injunction prohibiting the enforcement of several sections of the Liquor Code, including 47 Pa. Cons. Stat. § 4-447. As a result of that decision, the requirement that wholesale prices be reported and if reduced, remain at that level for at least 120 days, is no longer legal or enforced. Therefore, prices of malt beverages can be reduced and then raised at any time. See Legal Advisory No. 11. http://www.portal.state.pa.us/portal/server.pt?open=514&objID=611927&mod... Beer & Pop Warehouse v. Jones, 41 F.Supp.2d 552 (M.D. Pa., 1999).

Wholesalers may not sell below cost.

Wholesalers may not sell below cost. South Dakota requires a 10 day minimum hold period only if price of wine is amended to match a competitor's post down.

Wholesalers may not sell below cost. South Dakota requires a 10 day minimum hold period only if price of spirits is amended to match a competitor's post down.

Each licensee in a wholesale dealer's territory must receive at least one opportunity to buy beer at the changed price.

Codified regulations in Vermont are not available for dates prior to January 1, 2005.

Codified regulations in Vermont are not available for dates prior to January 1, 2005.

No sales below cost for Beer and Spirits.

APIS does not report wholesale pricing practices and restrictions in States where the index beverage is wholly or partially distributed through State-run wholesalers. Wholesale pricing practices and restrictions for Washington are reported beginning on December 8, 2011, when privatization began as a result of passage of Initiative 1183.

APIS does not report wholesale pricing practices and restrictions in States where the index beverage is wholly or partially distributed through State-run wholesalers. Wholesale pricing practices and restrictions for Washington are reported beginning on December 8, 2011, when privatization began as a result of passage of Initiative 1183.

No sales below cost for Beer and Spirits.

APIS does not report wholesale pricing practices and restrictions in States where the index beverage is wholly or partially distributed through State-run wholesalers. Wholesale pricing practices and restrictions for Washington are reported beginning on December 8, 2011, when privatization began as a result of passage of Initiative 1183.

Wholesalers are to include a 3 percent markup to cover a proportionate part of the cost of doing business, or a lesser amount with proof; wholesalers may not sell below cost.

Wholesalers are to include a 3 percent markup to cover a proportionate part of the cost of doing business, or a lesser amount with proof; wholesalers may not sell below cost.

Wholesalers are to include a 3 percent markup to cover a proportionate part of the cost of doing business, or a lesser amount with proof; wholesalers may not sell below cost.

Also see the Federal Law page for this policy topic.

Also see the Federal Law page for this policy topic.

Also see the Federal Law page for this policy topic.