SB 688 Summary

• Amends low-point beer distribution laws to regulate manufacturer-wholesaler agreements, including brand assignments, territory designations, and termination procedures.

• Lowers the production threshold for which termination protections apply from 300,000 gallons to 10,000 barrels (25,000 barrels in the House amendment) of low-point beer per calendar year.

• Requires manufacturers to assign brand extensions to wholesalers who hold exclusive distribution rights to the original brand and prohibits manufacturers from unreasonably withholding approval for ownership transfers of wholesalers.

• Establishes procedures for compensation when distribution rights are transferred between manufacturers, including mandatory arbitration under the Uniform Arbitration Act if parties cannot agree on fair market value within 30 days.

• Prohibits manufacturers from charging wholesalers money, property, discounts, rebates, or other inducements in exchange for entering into distribution agreements; effective November 1, 2015.