Alcohol Beverages Pricing

Wholesale Pricing Practices and Restrictions

Laws restricting the wholesale price of alcoholic beverages.

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Variables: Wholesale Pricing Practices and Restrictions

This topic presents Wholesale Pricing policies for three index beverages:

  • Beer of 5 percent alcohol by volume
  • Wine of 12 percent alcohol by volume
  • Distilled Spirits of 40 percent alcohol by volume
  1. Control
    • A check mark appears in the Control column if the State sets wholesaler prices for the index beverage (5% Alcohol by Volume (ABV) for beer, 12% ABV for wine, and 40% ABV for spirits) as part of its administrative function.  No wholesale pricing data are provided for States coded as control States for the index beverage (see Policy Description).
  2. Volume Discounts
    • Banned–States that do not allow wholesalers to offer a discount to retailers based on volume or quantity for the index beverage.
    • Restricted–States that place limits on the quantity for which a discount may be offered for the index beverage.
    • Uncertain—States in which pending case law calls into question whether wholesalers may offer volume discounts.
    • None (blank)—No State law prohibits wholesalers from offering quantity discounts.
  3. Minimum Markup/Maximum Discount
    • A check mark appears in the Minimum Markup/Maximum Discount column if the State does not allow wholesalers to sell below cost or requires that wholesalers establish a minimum markup or maximum discount for each product sold to retailers.
  4. Post-and-Hold
    • Post and Hold—States that require both posting of prices and holding (not reducing) wholesale prices for a specified period of time.
    • Post—States that require posting of wholesale prices, but a “hold” period is not stated or is not clearly defined.
    • Uncertain—States in which pending case law calls into question whether post-and-hold requirements may be in effect.
    • None (blank)—No State law requires the posting and holding of wholesale prices for a specified period of time.
    1. Post-and-Hold
      • Minimum Hold Period—For those States that require the posting and holding of wholesale prices, the minimum time period (in days) required for holding prices.When the statute or regulation specifies "months," APIS uses a 30-day conversion to determine number of days per month.
  5. Retailer Credit
    • Yes—States that allow wholesalers to extend credit to retailers.
    • No—States that prohibit wholesalers from extending credit to retailers and require that either wholesaler transactions must be in cash or that payment is due prior to or at the time of delivery.
    • None (blank)—No State law exists pertaining to wholesalers extending credit to retailers.
    1. Retailer Credit
      • Maximum Credit Period—The maximum time period (in days) allowed for the extension of credit. This applies only to those States that allow wholesalers to extend credit to retailers.  When the statute or regulation specifies "months," APIS uses a 30-day conversion to determine number of days per month.