SB 1370

Abstract

Amends the Beer Industry Fair Dealing Act. Defines "brand extension" as a brand that incorporates all or a substantial part of the features of a pre-existing brand of the same brewer and that relies to a significant extent on the good will associated with the pre-existing brand. Provides that a brewer may not fail to assign brand extensions to a wholesaler who has been granted the territory to the brand from which the brand extension resulted and who agrees to accept the brand extension, but this requirement does not apply if the wholesaler is not in compliance with the agreement at the time the brewer offers the brand extension to the wholesaler. Provides that a brewer who, under an agreement with a wholesaler that does not violate antitrust laws, has designated a sales territory for which the wholesaler is exclusively (rather than primarily) responsible or in which the wholesaler is required to concentrate its efforts, may not enter into an agreement with any other wholesaler to establish an additional wholesaler for the brewer's brand or brand extension in the territory. Provides that a wholesaler who, under an agreement is granted a sales territory for which it is exclusively (rather than primarily) responsible or in which it is required to concentrate its efforts may not sell or deliver beer to any retail licensee whose place of business is not within the territory granted to the wholesaler. Effective immediately.