Self-Distribution and Franchise Addressed in KY

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Senate Bill 231 seeks to allow microbreweries (defined as under 50,000 barrels annual production) to self-distribute up to 2,500 barrels per year. The bill additionally provides for: written distribution agreements; no cause terminations for brewers whose products represent five percent or less of a distributor’s gross annual sales, provided forty-five days’ notice of termination has been given and the payment to the distributor of an amount equal to 300% of the distributor’s gross profits from the sale of the brewer’s products in the twelve months immediately preceding the delivery of the notice of termination has been made.