Current through Register Vol. 41, No. 3, September 23, 2024
A.
Generally. This section applies to the solicitation, directly or indirectly, of
a mixed beverage licensee to sell or offer for sale spirits. Solicitation of a
mixed beverage licensee for such purpose other than by a permittee of the board
and in the manner authorized by this section shall be prohibited.
B. Permits.
1. No person shall solicit a mixed beverage
licensee unless he has been issued a permit. To obtain a permit, a person
shall:
a. Register with the board by filing an
application on such forms as prescribed by the board;
b. Pay in advance the fee;
c. Submit with the application a letter of
authorization from the manufacturer, brand owner or its duly designated United
States agent, of each specific brand or brands of spirits which the permittee
is authorized to represent on behalf of the manufacturer or brand owner in the
Commonwealth; and
d. Be an
individual at least 21 years of age.
2. Each permit shall expire yearly on June
30, unless sooner suspended or revoked by the board.
3. A permit hereunder shall authorize the
permittee to solicit or promote only the brand or brands of spirits for which
the permittee has been issued written authorization to represent on behalf of
the manufacturer, brand owner, or its duly designated United States agent and
provided that a letter of authorization from the manufacturer or brand owner to
the permittee specifying the brand or brands he is authorized to represent
shall be on file with the board. Until written authorization or a letter of
authorization, in a form authorized by the board, is received and filed with
the board for a particular brand or brands of spirits, there shall be no
solicitation or promotion of such product by the permittee. Further, no
amendment, withdrawal or revocation, in whole or in part, of a letter of
authorization on file with the board shall be effective as against the board
until written notice is received and filed with the board, and, until the board
receives such notice, the permittee shall be deemed to be the authorized
representative of the manufacturer or brand owner for the brand or brands
specified on the most current authorization on file with the board.
C. Records. A permittee shall keep
complete and accurate records of his solicitation of any mixed beverage
licensee for a period of two years, reflecting all expenses incurred by him in
connection with the solicitation of the sale of his employer's products and
shall, upon request, furnish the board with a copy of such records.
D. Permitted activities. Solicitation by a
permittee shall be limited to his authorized brand or brands, may include
contact, meetings with, or programs for the benefit of mixed beverage licensees
and employees thereof on the licensed premises, and in conjunction with
solicitation, a permittee may:
1. Distribute
directly or indirectly written educational material (one item per retailer and
one item per employee, per visit) which may not be displayed on the licensed
premises; distribute novelty and specialty items bearing spirits advertising
not in excess of $10 in wholesale value (in quantities equal to the number of
employees of the retail establishment present at the time the items are
delivered); and provide film or video presentations of spirits which are
essentially educational to licensees and their employees only and are not for
display or viewing by customers;
2.
Provide to a mixed beverage licensee sample servings from containers of spirits
and furnish one, unopened, sample container no larger than 375 milliliters of
each brand being promoted by the permittee and not sold by the licensee; such
containers and sample containers shall be purchased at a government store and
bear the permittee's permit number and the word "sample" in reasonable sized
lettering on the container or sample container label; further, the spirits
container shall remain the property of the permittee and may not be left with
the licensee, and any sample containers left with the licensee shall not be
sold by the licensee;
3. Promote
his authorized brands of spirits at conventions, trade association meetings, or
similar gatherings of organizations, a majority of whose membership consists of
mixed beverage licensees or spirits representatives for the benefit of their
members and guests, and shall be limited as follows:
a. To sample servings from containers of
spirits purchased from government stores when the spirits donated are intended
for consumption during the gathering;
b. To displays of spirits in closed
containers bearing the word "sample" in lettering of reasonable size and
informational signs provided such merchandise is not sold or given away except
as permitted in this section;
c. To
distribution of informational brochures, pamphlets and the like, relating to
spirits;
d. To distribution of
novelty and specialty items bearing spirits advertising not in excess of $10 in
wholesale value;
e. To film or
video presentations of spirits which are essentially educational;
f. To display at the event the brands being
promoted by the permittee;
g. To
rent display booth space if the rental fee is the same as paid by all
exhibitors at the event;
h. To
provide its own hospitality, which is independent from activities sponsored by
the association or organization holding the event;
i. To purchase tickets to functions and pay
registration fees if the payments or fees are the same as paid by all
attendees, participants, or exhibitors at the event; and
j. To make payments for advertisements in
programs or brochures issued by the association or organization holding the
event if the total payments made for all such advertisements do not exceed $300
per year for any association or organization holding the event; or
4. Provide or offer to provide
point-of-sale advertising material to licensees as provided in
3VAC5-20-20
or
3VAC5-30-80.
E. Prohibited activities. A
permittee shall not:
1. Sell spirits to any
licensee, solicit or receive orders for spirits from any licensee, provide or
offer to provide cash discounts or cash rebates to any licensee, or to
negotiate any contract or contract terms for the sale of spirits with a
licensee;
2. Discount or offer to
discount any merchandise or other alcoholic beverages as an inducement to sell
or offer to sell spirits to licensees;
3. Provide or offer to provide gifts,
entertainment or other forms of gratuity to licensees except that a permittee
may provide a licensee "routine business entertainment," as defined in
3VAC5-30-70,
subject to the same conditions and limitations that apply to wholesalers and
manufacturers under that section;
4. Provide or offer to provide any equipment,
furniture, fixtures, property or other thing of value to licensees except as
permitted by this regulation;
5.
Purchase or deliver spirits or other alcoholic beverages for or to licensees or
provide any services as inducements to licensees, except that this provision
shall not preclude the sale or delivery of wine or beer by a licensed
wholesaler;
6. Be employed directly
or indirectly in the manufacturing, bottling, importing or wholesaling of
spirits and simultaneously be employed by a retail licensee;
7. Solicit licensees on any premises other
than on their licensed premises or at conventions, trade association meetings
or similar gatherings as permitted in subdivision D 3 of this
section;
8. Solicit or promote any
brand or brands of spirits without having on file with the board a letter from
the manufacturer or brand owner authorizing the permittee to represent such
brand or brands in the Commonwealth; or
9. Engage in solicitation of spirits other
than as authorized by law.
F. Refusal, suspension or revocation of
permits.
1. The board may refuse, suspend, or
revoke a permit if it shall have reasonable cause to believe that any cause
exists that would justify the board in refusing to issue such person a license,
or that such person has violated any provision of this section or committed any
other act that would justify the board in suspending or revoking a
license.
2. Before refusing,
suspending, or revoking such permit, the board shall follow the same
administrative procedures accorded an applicant or licensee under Title 4.1 of
the Code of Virginia and regulations of the board.
Statutory Authority: §
4.1-111
of the Code of Virginia.