Alcohol Beverages Pricing

Wholesale Pricing Practices and Restrictions

Laws restricting the wholesale price of alcoholic beverages.

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Jurisdiction Policies as of Beverage Type Control Volume Discounts Minimum Markup Maximum Discount Post and Hold Minimum Hold Period (in days) Retailer Credit Maximum Credit Period (in days) Citations
AL (Alabama)
1/1/2017Beer   No 3 Citations
AK (Alaska)
1/1/2017Beer    No Law
AZ (Arizona)
1/1/2017Beer   No 4 Citations
AR (Arkansas)
1/1/2017Beer   No 3 Citations
CA (California)
1/1/2017Beer  Post Yes306 Citations
CO (Colorado)

Beginning on January 1, 2017, a liquor-licensed drugstore shall not purchase alcohol beverages on credit.

Wholesalers may not sell below cost.

1/1/2017Beer Yes Yes306 Citations
CT (Connecticut)

Wholesalers may not sell below cost.

1/1/2017Beer BannedYesPost and Hold30Yes3013 Citations
DE (Delaware)

Delaware law states that the Commissioner shall not control or regulate credit transactions to the extent they are permitted by federal law.

1/1/2017Beer  Post Yes 4 Citations
DC (District of Columbia)
1/1/2017Beer   Yes452 Citations
FL (Florida)
1/1/2017Beer  Post Yes157 Citations
GA (Georgia)

With respect to purchases of beer, if retailer owns more than one business and payment is made from a central office, credit may be extended for a period not to exceed five days after delivery and invoice.

1/1/2017Beer  Post and Hold180No 3 Citations
HI (Hawaii)
1/1/2017Beer   Yes301 Citations
ID (Idaho)
1/1/2017Beer Banned Post and Hold180No 9 Citations
IL (Illinois)
1/1/2017Beer   No 2 Citations
IN (Indiana)

All prices, discounts, or allowances offered by wholesalers shall be disseminated to customers in such a manner and for such a period of time to insure that customers are afforded reasonable opportunity to secure the discount. For dissemination purposes, the customer is anyone the wholesaler had sold alcoholic beverages to within the last 30 days. For purposes of this rule, a reasonable opportunity to secure the discount shall be presumed when offer is extended for not less than 7 days after dissemination of the price list.

1/1/2017Beer  Post and Hold7No 6 Citations
IA (Iowa)
1/1/2017Beer   No 4 Citations
KS (Kansas)
1/1/2017Beer Banned  No 9 Citations
KY (Kentucky)
1/1/2017Beer   No 2 Citations
LA (Louisiana)

The banning of volume discounts has been held to be a valid exercise of the police power of the state to regulate the sale of alcoholic beverages. See Manuel vs. State Office of Alcohol and Tobacco Control, 2007-1620 (La. App. 3 Cir. 4/30/08), 982 So.2d 316, writ denied, 2008-1061 (La. 8/29/08) 989 So.2d 107; La. Atty. Gen. Op. No. 09-0135 (2009).

1/1/2017Beer Banned  No 10 Citations
ME (Maine)
1/1/2017Beer Banned Post and Hold30No  4 Citations
MD (Maryland)

With respect to purchases of beer, all counties require payment on delivery except Worcester County where 10 days of credit may be extended.

1/1/2017Beer   No 9 Citations
MA (Massachusetts)
1/1/2017Beer  Post and Hold30Yes608 Citations
MI (Michigan)

With respect to beer, prices may be decreased during the 90 day minimum hold period to meet a competing wholesaler’s price. The price reduction cannnot be greater on a cents-per-case basis than the price reduction filed by the competition and must continue for the balance of the 90 days filed by the competition.

Credit may be extended for a maximum of 30 days for on-sale retailers; no credit may be extended to off-sale retailers.

1/1/2017Beer Banned Post and Hold90Yes3010 Citations
MN (Minnesota)
1/1/2017Beer   No 4 Citations
MS (Mississippi)
1/1/2017Beer   No  2 Citations
MO (Missouri)

Wholesalers may not sell below cost.

1/1/2017Beer Yes Yes308 Citations
MT (Montana)
1/1/2017Beer   Yes73 Citations
NE (Nebraska)
1/1/2017Beer   No 3 Citations
NV (Nevada)
1/1/2017Beer   Yes413 Citations
NH (New Hampshire)

Wholesalers are required to make their current beer prices available to the commission in writing.

1/1/2017Beer  Post Yes106 Citations
NJ (New Jersey)

Wholesalers may not sell below cost.

1/1/2017Beer YesPost and Hold30Yes304 Citations
NM (New Mexico)
1/1/2017Beer   Yes303 Citations
NY (New York)
1/1/2017Beer   Yes258 Citations
NC (North Carolina)
1/1/2017Beer Banned  No 3 Citations
ND (North Dakota)
1/1/2017Beer   No 6 Citations
OH (Ohio)
1/1/2017Beer Banned  No 5 Citations
OK (Oklahoma)
1/1/2017Beer Banned Post and Hold30No 10 Citations
OR (Oregon)

Licensees must make beer price lists available for Commission inspection.

1/1/2017Beer Banned Post and Hold14No 7 Citations
PA (Pennsylvania)

Although current law suggests that there is a 120-day hold on reducing prices posted by the wholesaler for distribution of beer, that rule is no longer legal nor being enforced as a result of an order on January 15, 1999, by Judge Richard Caputo of the United States District Court for the Middle District of Pennsylvania. The order granted a permanent injunction prohibiting the enforcement of several sections of the Liquor Code, including 47 Pa. Cons. Stat. § 4-447. As a result of that decision, the requirement that wholesale prices be reported and if reduced, remain at that level for at least 120 days, is no longer legal or enforced. Therefore, prices of malt beverages can be reduced and then raised at any time. See Legal Advisory No. 11. http://www.portal.state.pa.us/portal/server.pt?open=514&objID=611927&mode=2; Beer & Pop Warehouse v. Jones, 41 F.Supp.2d 552 (M.D. Pa., 1999).

1/1/2017Beer   No  6 Citations
RI (Rhode Island)
1/1/2017Beer    No Law
SC (South Carolina)
1/1/2017Beer   No 6 Citations
SD (South Dakota)

Wholesalers may not sell below cost.

1/1/2017Beer YesPost No 11 Citations
TN (Tennessee)
1/1/2017Beer Banned Post and Hold360No 5 Citations
TX (Texas)
1/1/2017Beer   No 5 Citations
UT (Utah)
1/1/2017BeerYes   No Law
VT (Vermont)

Each licensee in a wholesale dealer's territory must receive at least one opportunity to buy beer at the changed price.

Codified regulations in Vermont are not available for dates prior to January 1, 2005.

1/1/2017Beer Banned Post and Hold14No 4 Citations
VA (Virginia)
1/1/2017Beer   No 5 Citations
WA (Washington)

No sales below cost for Beer and Spirits.

APIS does not report wholesale pricing practices and restrictions in States where the index beverage is wholly or partially distributed through State-run wholesalers. Wholesale pricing practices and restrictions for Washington are reported beginning on December 8, 2011, when privatization began as a result of passage of Initiative 1183.

1/1/2017Beer BannedYesPost No 10 Citations
WV (West Virginia)
1/1/2017Beer Banned Post and Hold90No  10 Citations
WI (Wisconsin)

Wholesalers are to include a 3 percent markup to cover a proportionate part of the cost of doing business, or a lesser amount with proof; wholesalers may not sell below cost.

1/1/2017Beer Yes Yes 155 Citations
WY (Wyoming)
1/1/2017Beer   No 4 Citations
US ( United States)

Also see the Federal Law page for this policy topic.

1/1/2017Beer   Yes302 Citations