Code of Maryland Regulations
Title 14 - INDEPENDENT AGENCIES
Subtitle 23 - ALCOHOL AND TOBACCO COMMISSION
Chapter 14.23.01 - Alcoholic Beverages
Section 14.23.01.19 - Brand Size, Special Pack, Gift Packaging, and Labeling
Universal Citation: MD Code Reg 14.23.01.19
Current through Register Vol. 51, No. 26, December 27, 2024
A. Definitions.
(1) "Depletion allowance" means
an allowance offered by a supplier which is:
(a) For a given brand and size;
(b) For a specific duration;
(c) For a given amount per case;
(d) Based upon sales from existing wholesaler
inventories; and
(e) Not
conditioned upon purchases by a wholesaler.
(2) "Private label" means any label that is
owned by a licensed retail dealer, or is bottled and labeled exclusively for
sale to a licensed retail dealer.
(3) "Restricted or confined label" means any
label of wine or distilled spirits, domestic or imported, other than private
labels and those labels available for sale to licensed retail dealers
generally.
(4) "Self-imports" means
any alcoholic beverages which are purchased and imported by a licensed
wholesaler when the alcoholic beverages are invoiced by the foreign supplier
direct to the Maryland licensed wholesaler.
(5) "Special pack" or "gift pack" means a
carton or package which:
(a) Contains:
(i) More than one brand of wine or distilled
spirits, or
(ii) One brand of wine
or distilled spirits and one nonalcoholic item; and
(b) Is intended for ultimate sale to the
consumer.
(6)
"Wholesaler" means a person who purchases from a nonresident dealer, or
self-imports from a foreign source, any alcoholic beverages for sale to other
licensed wholesalers or licensed retail dealers, and includes a county liquor
control board and a county wholesale dispensary.
B. Special Pack or Gift Pack Requirements.
(1) Size of Containers. Only one size of an
alcoholic beverage container shall be represented within a special
pack.
(2) Containers in Carton. The
total number of containers in a carton shall be in conformance with the
provisions of §C of this regulation.
(3) Nonalcoholic Items. Nonalcoholic items
shall be restricted to those items which are physically packaged with the
special pack and which are intended for ultimate purchase by the consumer.
Signs, placards, devices, and graphic displays bearing advertising or other
forms of advertising may not be included in special packs.
(4) Consumer Oriented. A special pack shall
be:
(a) Entirely consumer oriented;
and
(b) Configured and packaged to
show that it is intended for ultimate sale to the consumer.
(5) Handling and Package Costs.
The cost of special packaging materials and additional labor costs to assemble
the special pack may be added to the price of the special pack if it is
reported on a special pack price analysis.
(6) Brand Identity. Each special pack shall
be considered a distinct brand.
(7)
Component Pricing. The cost of the special pack is not dependent on the price
of any component alcoholic beverage also sold in regular case lots. However,
special pack pricing may not be used to provide free goods or hidden discounts
directly to the licensed retailer.
(8) Approval Process.
(a) Suppliers and wholesalers shall provide
written communication to the Executive Director at least 14 days prior to its
distribution, to include the type of alcoholic beverages, quantity amounts,
size of containers, and any non-alcoholic items that are included in the
special pack.
(b) The Executive
Director reserves the right to request more detailed information, including
physical inspection or photograph, if a particular problem or question arises
with regard to a specific filing.
(9) Multipacks. Special packs which are only
available as multipacks, without nonalcoholic items, are authorized if the
component items are not available in regular case lots.
C. Containers in Carton.
(1) Packages are to be distributed as
follows:
(a) Multiples of 12;
(b) Half quantities;
(c) Four 5 liters;
(d) Four 4 liters;
(e) Four 3 liters;
(f) Six 3 liters;
(g) Six 13/4 liters;
(h) Eight or 6 11/2 liter containers, but not
more than one configuration per brand in any 12 consecutive months;
(i) 15, 12, or 9 1-liter containers, but not
more than one configuration per brand in any 12 consecutive months;
(j) 15 or 12 750-milliliter containers, but
not more than one configuration per brand in any 12 consecutive months;
or
(k) Any legal size packaged and
sold as a single container.
(2) When containers hold less than 12.8
ounces or 378.7 milliliters, the quantity of containers may not be restricted
to multiples of 12 but shall be in accordance with the prevailing practice in
effect as to size and as to the number of containers in a carton.
D. Labeling.
(1) A label that is sold to more than one
licensed retail dealer in Maryland may not qualify as a private label, and
shall be made available for sale to licensed retail dealers
generally.
(2) Restricted or
confined labels are prohibited for sale to licensed retail dealers.
(3) Terms or conditions of sale, including
delivery charges, C.O.D. charges, etc., shall be stated on the invoice covering
the sale.
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