Due to the explosive growth of craft beer sales in many states, including Washington, many distributors are combining non-alcoholic and alcoholic beverage sales into their distribution business.  A key point for Washington distributors is to be aware that the Washington Liquor Control Board (WLCB) contends that the so-called “Tied-House” rules governing the sale of alcoholic beverages apply to any such distributors sale of non-alcoholic, as well as, alcoholic beverages. While the WLCB may not be actively enforcing the rules because they are overwhelmed with marijuana production and sale issues, a  distributor in Washington state selling non-alcohol and alcoholic beverages, must be aware that all of the Tied House restrictions on things provided to retailers (Slotting fees, free goods, free fills) apply to the non-alcohol products as well as beer and wine. The only exception is a 30 day credit period for non-alcohol sales.

 

Photo of Chris Hermann Chris Hermann

Chris Hermann is the founding chair of Stoel Rives’ Brewery, Winery, and Distillery group and a former co-chair of the firm’s Beverage and Hospitality group. He has worked with Northwest breweries, wineries, vineyards, and distilleries for many years. Chris has particular experience with…

Chris Hermann is the founding chair of Stoel Rives’ Brewery, Winery, and Distillery group and a former co-chair of the firm’s Beverage and Hospitality group. He has worked with Northwest breweries, wineries, vineyards, and distilleries for many years. Chris has particular experience with transactions involving the purchase, sale, and LLC formation of breweries, wineries, vineyards, and distilleries, preparing and prosecuting trademark applications, obtaining water rights and land use permits and approvals, advising owners on employment and termination agreements, and drafting and negotiating grape purchase contracts, vineyard leases and custom crush, joint proprietorship, vineyard development and maintenance, and bottling and distribution agreements. Since 2013, Chris has been listed by Chambers USA as one of “America’s Leading Lawyers for Business” (Nationwide) in the Food & Beverages: Alcohol practice area.

Click here for Chris Hermann’s full bio.