LRB-3461/1
ARG:cdc
2021 - 2022 LEGISLATURE
February 17, 2022 - Introduced by Representatives Knodl, Gundrum, Moses and
Tauchen, cosponsored by Senators Stroebel, Nass and Roys. Referred to
Committee on State Affairs.
AB1034,1,3
1An Act to repeal 125.34 (3) (a) 2.;
to renumber 125.34 (3) (a) 1.; and
to amend
2125.29 (3m) (b), 125.29 (3m) (c) and 125.34 (4) (b) of the statutes;
relating to:
3the sales territories of beer wholesalers and self-distribution by brewers.
Analysis by the Legislative Reference Bureau
This bill eliminates the requirement that the sales territories for wholesalers
of fermented malt beverages (beer) be exclusive and makes related changes
applicable to self-distribution by brewers.
Under current law, a beer wholesaler may not sell or deliver any brand of beer
unless the wholesaler has entered into a written agreement with the brewer or
brewpub supplying the brand that grants to the wholesaler distribution rights and
identifies the designated sales territory for which these distribution rights are
granted. A brewer or brewpub may not grant to more than one wholesaler
distribution rights for the same brand in the same designated sales territory. A
wholesaler may not sell or deliver a brand of beer to a retailer located outside the
wholesaler's designated sales territory for the brand. There are limited exceptions
that allow another wholesaler or a brewer to distribute beer within a wholesaler's
exclusive sales territory, such as when the wholesaler is unable to service its
territory.
This bill eliminates the requirement that the distribution agreement between
a brewer or brewpub and a beer wholesaler grant the wholesaler exclusive brand
distribution rights within a sales territory.
Also under current law, a brewer that manufactures 300,000 or fewer barrels
of beer per year may sell and deliver its own beer to retailers if the brewer complies
with certain requirements, as applicable, to the same extent as if the brewer were
a wholesaler, including the requirement for an exclusive sales territory. As it does
for wholesalers, this bill eliminates the requirement for exclusive designated sales
territories for self-distribution by brewers that manufacture 300,000 or fewer
barrels of beer per year. The bill also clarifies that a brewer that self-distributes does
not need to maintain a written agreement with itself and does not need to unload and
reload beer at a wholesaler's warehouse. The bill also provides that certain other
provisions related to beer distribution do not apply to a brewer. Like a wholesaler,
a brewer may deliver beer to retailers only at their retail premises.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1034,1
1Section
1. 125.29 (3m) (b) of the statutes is amended to read:
AB1034,2,82
125.29
(3m) (b) A brewer that manufactures 300,000 or less barrels of
3fermented malt beverages in a calendar year from all locations may sell, ship,
4transport and deliver to retailers, from the brewery premises, fermented malt
5beverages, in original unopened packages or containers, that have been
6manufactured on the brewery premises, if the brewer complies with the
7requirements in
ss. s. 125.33
, as applicable, and
s. 125.34
(5),
as applicable, to the
8same extent as if the brewer were a wholesaler.
AB1034,2
9Section
2. 125.29 (3m) (c) of the statutes is amended to read:
AB1034,3,210
125.29
(3m) (c) If a wholesaler that has been granted distribution rights by a
11brewer for a brand in a designated sales territory is unable to service the designated
12sale sales territory for any reason, including the discontinuation of the wholesaler's
13distribution rights, bankruptcy, or criminal prosecution of the wholesaler in
14connection with operation of the wholesaler, and the reason is not the result of an
15action by the brewer, then a brewer shall be allowed, for a period of not more than
16one year, to sell or ship any brand of fermented malt beverages to retailers located
17in the wholesaler's designated sales territory.
This paragraph applies only to a
1brewer that manufactures at least 300,000 barrels of fermented malt beverages in
2a calendar year from all locations.
AB1034,3
3Section
3. 125.34 (3) (a) 1. of the statutes is renumbered 125.34 (3) (a).
AB1034,4
4Section
4. 125.34 (3) (a) 2. of the statutes is repealed.
AB1034,5
5Section
5. 125.34 (4) (b) of the statutes is amended to read:
AB1034,3,96
125.34
(4) (b) Any person, other than another wholesaler, that the wholesaler
7knows or should know will transport the product for resale in a designated sales
8territory for which
another the wholesaler has
not been granted distribution rights
9for the brand.
