FL Bill Looks at Franchise, Self-Distributon Issues

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Senate Bill 1304 would permit manufacturers to terminate a distributor contract if their products represent less than 10% of distributor’s total alcohol beverage portfolio with 120 days’ notice. The bill further: 1) provides that a brewery brewing less than 250,000 barrels is not subject to the Florida franchise law; 2) permits a brewery to transfer, without a distributor, any collaboration beers they produce; 3) provides that a brewery brewing less than 250,000 barrels can self-distribute (kegs, package, etc.), however, if a brewery has an existing distribution agreement, it can deliver up to 4 kegs to a vendor in that territory at a time (any delivery over 4 kegs requires the distributor’s written permission); 4) standardizes “barrels” of beer in the statute language (instead of kegs); 5) lowers the requirement for a distributorship license from $100,000 worth of product to $10,000 worth of product; 6) eliminates the “come-to-rest requirement” for a brewery that is self-distributing.

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