Rep. Knodl and Sen. Stroebel have introduced SB 959 which would eliminate the requirement under current law that a brewer can only give one wholesaler exclusive distribution rights for a brand in a designated sales territory.
Under current law, a beer wholesaler must enter into a written agreement with a brewer before selling and delivering their beer. Brewers are prohibited from granting to more than one distributor the rights of a brand within a designated sales territory, and wholesalers are prohibited to selling or delivering outside of their designated sales territory. This bill eliminates the requirement that the distribution agreement between brewers and wholesalers grant exclusive distribution rights. This will create competition among wholesalers and provide retailers more options on how they can purchase beer.