The Alcoholic Beverage Control Act generally prohibits any licensee from giving any premiums, gift, or free goods in connection with the sale or distribution of any alcoholic beverage, except as permitted by rule adopted by the Department of Alcoholic Beverage Control. The act prohibits the department from adopting a rule that permits a licensee to give any premium, gift, or free good of greater than inconsequential value, in connection with the sale or distribution of beer, except as specified. The act provides, with respect to beer, that premiums, gifts, or free goods, including specified advertising specialties, are deemed to have greater than inconsequential value if they cost more than $0.25 per unit, or cost more than $15 in the aggregate for all those items given by a single supplier to a single retail premises per calendar year.

This bill would authorize a beer manufacturer, without direct or indirect charge, to give up to five cases of retail advertising glassware to an on-sale retail licensee, per licensed location, each calendar year for use at the licensed location. The bill would permit an on-sale retail licensee to accept, without direct or indirect charge, up to 10 cases of retail advertising glassware, per licensed location, from licensed beer manufacturers each calendar year for use at the licensed location. The bill would prohibit the on-sale retail licensee from selling the glassware, giving it away, or returning it to a manufacturer for cash, credit, or replacement, would prohibit the on-sale retail licensee from conditioning the purchase of a beer manufacturer’s product or products on the giving of retail advertising glassware by that beer manufacturer, and would prohibit a beer wholesaler from contributing to specified costs associated with the glassware or serving as the agent of the beer manufacturer to deliver, stock, or store glassware for an on-sale retailer. The bill would prescribe definitions in this regard.