• COVID-19 Resources
  • Administrative Law
  • Liquor Law – ABC – OLCC
  • Employment Law
  • GAMING: Internet & Casino
  • Land Use
  • Personal Injury & Wrongful Death
Call Us Now: 800.405.4222
Solomon Saltsman & Jamieson - SSJ Law
  • Home
  • Practice Areas
    • Administrative Law
    • Alcohol and Liquor Law: ABC | OLCC
    • Employment Law
    • GAMING: Internet & Casino
    • Land Use
    • Personal Injury & Wrongful Death
  • Our Lawyers
  • Articles
  • Community Service
  • Resources
  • Contact Us
    • The Firm
    • AV Rating
    • Client List
  • Search
  • Menu Menu

New 2020 Law: Okay for Brewers Give Glassware to Retailers

By

Ralph Barat Saltsman, Stephen Warren Solomon, Stephen Allen Jamieson,
R. Bruce Evans, Ryan Kroll, Jennifer L. Oden

Historically, the Tied-House provisions of the ABC Act have prohibited retail licensees from accepting things of value from alcohol manufacturers, distributors and wholesalers. Business and Professions Code § 25600 begins:

(a)(1) No licensee shall, directly or indirectly, give any premium, gift, or free goods in connection with the sale or distribution of any alcoholic beverage, except as provided by rules that shall be adopted by the department to implement this section or as authorized by this division.

There are limits and exceptions that have been added since the statute’s adoption effective 1953.

CCR § 106 (Rule 106) similarly provides:

(a)   Free Goods. No licensee shall, directly or indirectly, give any premium, gift, free goods, or other thing of value in connection with the sale, distribution, or sale and distribution of alcoholic beverages, and no retailer shall, directly or indirectly, receive any premium, gift, free goods or other thing of value from a supplier of alcoholic beverages, except as authorized by this rule or the Alcoholic Beverage Control Act.

Similar to 25600, Rule 106 provides definitions, permissions, exceptions, limitations and circumstances. The Department itself added its own interpretations.

Tradition has defined the dance between basic Tied-House prohibitions, and interaction between the three tiers in the alcoholic beverage industry. In 2019 the legislature introduced new legislation that affects this industry relationship.

In a minor erosion to the “free goods” prohibition that disallows alcohol manufacturers, distributors, and wholesalers from giving things of value to retailers, the legislature has enacted Business and Professions Code § 25600.05. The new law allows beer manufacturers (Type 01 and Type 23) out of state beer manufacturers (Type 26) and the beer and wine importers (Type 10) to provide up to 5 cases of retail advertising glassware to on-sale licensees per each licensed location per calendar year.

The statute has limits, definitions and requirements:

1)      A case is up to 24 pieces of glassware

2)      Glasses are single service holding a maximum of 23 ounces to be used for service of beer

3)      The “Retail Advertising Glassware” must have conspicuous advertising of beer

These “gifts” must not be conditioned on the purchase of any product (including beer manufactured by the provider.)

The glassware must be delivered by said manufacturer directly to the licensed premises (and not in large quantity to the licensee for distribution by the licensee to said licensed premises.)

The beer manufacturer must itself deliver the glassware. The 5 cases constitute the total that a beer manufacturer can distribute to any licensed premises (per year.)

Any given retailer can accept a maximum of 10 cases per location per calendar year. Beer manufacturers must file records of each such delivery to the ABC within 30 days of the delivery. This report must contain detailed information and will be submitted on a report template or electronic file. Such records must be kept for a three-year period.

Note, if the quantity of glassware exceeds the statutory maximum, it is the retailer’s responsibility to refuse acceptance of the retailer glassware.

Sections (c), (d), (e), and (f) delineate the statutory restrictions.

​(c) A beer wholesaler shall not directly or indirectly underwrite, share in, or contribute to the costs of glassware or any costs of transportation or shipping or serve as the agent of the beer manufacturer to deliver, stock, or store glassware for an on-sale retailer.

(d) A licensee authorized to give retail advertising glassware pursuant to this section shall not be precluded from doing so on the basis of having an interest in any other type of alcoholic beverage license within or outside of the state.

(e) A beer manufacturer shall file with the department, in a manner prescribed by the department, records related to glassware provided to an on-sale retail licensee pursuant to this section within 30 days of the delivery of the glassware. In addition, a beer manufacturer shall keep and maintain records for a three-year period of all glassware given pursuant to this section.

(f) An on-sale retail licensee shall keep and maintain records for a three-year period of all glassware received pursuant to this section and of all other retail advertising glassware purchased or otherwise received. Such records shall be maintained by the on-sale retail licensee at the licensed premises to which the beer manufacturer delivers the glassware authorized by this section. The on-sale retail licensee shall produce records to the department promptly upon request. (See Business and Professions Code § 25600.05, effective January 1, 2020)

This statue shall remain effective only until January 1, 2023 at which time it is repealed.

Current Affairs

  • Happy Valentine’s Day from SSJ LawFebruary 14, 2021 - 2:24 am

    SSJLaw is working remotely as a safety measure to help mitigate public exposure to COVID 19

  • COVID-19 Crisis: Important Questions To AskMarch 19, 2020 - 2:45 am

    SSJLaw is working remotely as a safety measure to help mitigate public exposure to COVID 19

  • New 2020 Law: Okay for Brewers Give Glassware to RetailersJanuary 26, 2020 - 11:47 pm
  • Jamieson Most Valuable Associate Member of 2018 NALCPJamieson Received NALCP Most Valuable Associate Member AwardMay 16, 2019 - 6:29 am
  • Solomon, Saltsman & Jamieson Celebrate a Year Well Done!April 2, 2019 - 9:11 pm

    In 2018, SSJLaw settled personal injury cases in excess of $13,000,000.
    In continuing to litigate catastrophic injury cases, SSJLaw successfully concluded cases which included a motorcycle accident death, a pedestrian versus car injury, and a shooting that left our client severely and permanently injured, as well as other many significant and life changing matters.

LOS ANGELES OFFICE

426 Culver Boulevard
Los Angeles, CA 90293
Toll Free: 800.405.4222
Los Angeles: 310.822.9848
[email protected]

BAY AREA OFFICE

315 Montgomery Street
10th Floor
San Francisco, CA  94104
Toll Free: 800.405.4222
[email protected]

PORTLAND OFFICE

3519 NE 15th Avenue, Suite 202
Portland, OR 97212
Toll Free: 800.405.4222
Portland: 503.236.8050
[email protected]

Do you have questions?

email or call us at 800.405.4222

Join Our Email List

Select list(s) to subscribe to


By submitting this form, you are consenting to receive marketing emails from: Solomon, Saltsman & Jamieson, 426 Culver Blvd., Los Angeles, CA, 90293. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Current Affairs & Latest News

Happy Valentine's Day from SSJ Law

COVID-19 Crisis: Important Questions To Ask FOR IMMEDIATE RELEASE March 18, 2020 To Clients, Colleagues, and all of our

Read Full Article

DISCLAIMER

Articles posted on our website, were to the best of our knowledge correct at the time they were written, but laws change continuously so no one should rely on what is written in any article as the current state of the law. The reader should always consult a practicing lawyer for an evaluation of how the current law affects any particular factual situation at the time when it occurs. The badges for AVVO®, Million Dollars Advocates Forum®, Martindale Hubbel AV Preeminent®, SuperLawyers®, and BestLawyers®” have been awarded to various specific attorneys at Solomon Saltsman and Jamieson.  See each attorney’s profile for which badges are specifically assigned to him or her.
Full Site Disclaimer

Copyright © 2018 Solomon Saltsman & Jamieson.

Website design by: wwyou.com

Jamieson Received NALCP Most Valuable Associate Member Award Jamieson Most Valuable Associate Member of 2018 NALCP COVID-19 Crisis: Important Questions To Ask
Scroll to top