SB138 Summary

• Creates direct wine shipper license allowing small wine manufacturers (producing less than 50,000 gallons annually) to ship up to 12 nine-liter cases per household annually directly to Alabama consumers aged 21+, subject to board approval and tax compliance.

• Requires wine suppliers (manufacturers and importers) to designate exclusive sales territories and enter written franchise agreements with wholesalers, prohibiting suppliers from selling the same brand in the same territory to multiple wholesalers.

• Establishes supplier prohibitions including price-fixing restrictions, coercion bans, inventory limitations, and protections against retaliatory actions; requires 60-day notice before terminating or modifying agreements except in cases of insolvency, felony conviction, or intentional fraud.

• Creates wholesaler protections including compensation for diminished business value and mandatory arbitration procedures for disputes; allows transfers to designated family members without supplier approval if transferee meets nondiscriminatory standards.

• Establishes penalties including Class C misdemeanor for unlicensed wine shipment ($500-$6,000 fines and potential license suspension) and authorizes civil actions for damages, including punitive damages for intentional bad faith conduct by suppliers.