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.
Pete Johnson serves as the State & Regulatory Affairs Manager for the Brewers Association (BA). He joined the BA at its inception in 2005, having previously worked as Programs Director for the Brewers Association of America. Before coming to the small brewing industry in 2001, Pete worked for 14 years with both state and federal elected officials in Pennsylvania and Washington, D.C.See Pete Johnson's Articles