Franchise and Self-Distribution Issues Addressed in GA

Share Post

House Bill 738 allows a small brewer (defined as a brewer whose sales of products to such brewer’s wholesaler do not exceed 15 percent of the wholesaler’s total sales in the prior calendar year) to terminate a wholesaler agreement with 30 days’ notice. The bill provides that the successor wholesaler will compensate the discontinued wholesaler in an amount equal to the fair market value of the small brewer’s distribution rights and if an agreed value cannot be reached, arbitration is provided for. Finally, the bill provides for a 25,000 barrel annual self-distribution allowance.

Was this article helpful?