A new draft (S.B. 2841) of the previous bill which passed the Senate, has been referred to House committee. The legislation allows a brewery with less than 250,000 barrels annual production to terminate a wholesaler in the absence of good cause with thirty days’ written notice of termination. The terminated wholesaler, as sole and exclusive compensation for termination of the right to distribute the brands of the brewery, shall be paid an amount equal to the laid-in cost of the merchantable inventory and the laid-in cost of the current sales and marketing material, plus the fair market value of the distribution rights for the brands that are being terminated by the brewery. If fair market value cannot be agreed upon, binding arbitration would be invoked to make that determination.
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