CA AB1940

Allows wholesalers or manufacturers to accept returns of seasonal or discontinued beer brands from retail licensees and exchange them for similar quality beer from the same or different manufacturer (if original manufacturer ceased business), with equal or lesser value than the original sale price.

Requires Department of Alcoholic Beverage Control approval for seasonal and discontinued beer returns and exchanges.

Prohibits reintroduction of discontinued brands for 12 months and seasonal brands for 6 months in the same California market area where a return and exchange occurred.

Maintains existing restrictions on beer returns for damaged packages (credit memorandum within 15 days) and seasonal/temporary licensees with unsold inventory at license termination.

Effective date: September 12, 2024.