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Trade Practices

Questions & Answers from NH Wholesalers

Glassware

Waitstaff Uniforms

Draft Services

National Discount Programs

Beverage Manager and Owner Incentives and Giveaways

Merchandising

Wholesaler to Employee Uniforms and Gifts

Wholesaler and Charitable Events

Brand Education

Bureau Alcohol, Tobacco and Firearms Regulations

Glassware:

Question #1

Q. Is it legal for a wholesaler to sell glassware to a licensee, and if so at what cost?

A. An industry member may sell glassware to a retailer at or above the industry member's cost, or actual cost, whichever is greater. (RSA179:29 II)

Question #2

Q. If it is legal to sell glassware to a licensee, what is the method of invoicing the licensee?

A. Glassware should be invoiced just like beer; billing and payment records must be retained for 3 years according to BATF regulations. Glassware is not subject to the state 15 day list requirement, but is subject to the BATF 30 day maximum credit period. Sales not paid within 30 days may be considered as gifts or inducement and thus a violation. (BATF6.81, 6.65)

Question #3

Q. Can glassware be personalized with the licensee logo or beverage brand?

A. Yes, provided that service is included in the cost figure when selling the glassware to the retailer. RSA179:29 I specifically allows the name of the retailer to be imprinted on advertising specialties; it seems reasonable to conclude that such imprinting would be legal in section II.

Question #4

Q. Is it legal to give away glassware at a promo night?

A. Glassware is not a consumer advertising item for the purposes of RSA179:30; it is equipment covered under RSA179:11 and RSA179:29 II. Therefore, glassware cannot be given to a retailer for unconditional distribution to the public. Due to the fact that it is equipment, it should not be taken onto licensed premises for distribution to the public.

Question #5

Q. Is it legal to give glassware to a licensee to serve product?

A. No. RSA179:11 I forbids a wholesaler to give or sell equipment or anything else a licensee could use to carry on his business. RSA179:29 II allows an exception to this for glassware which must be sold to the licensee.

Question #6

Q. Is it legal to give glassware to a licensee period?

A. It is never legal to give glassware to a licensee. (RSA179:29 II) It is legal to package glassware with beverages in a gift package, or to package beverage in a reusable container, such as a stein, for retail sale. All such items must be posted with the commission and sold to licensees at the posted price.

Question #7

Q. Is there a dollar limitation restriction on the giving of glassware, either just for it or as part of a dollar restriction on other giveaways as well?

A. As above, glassware is equipment, and may not be given to a licensee in any quantity. It must be sold at or above cost.

Question #8

Q. Is it legal to sell glassware to a vendor, and for the vendor to furnish the licensee the glassware as an inducement for that licensee's purchase of other items for sale by the vendor?

A. If the vendor is an industry member (beverage vendor, manufacturer, etc.) then this is a violation. If the glassware is used as an inducement for alcohol promotion or purchase, this is a violation, whether the vendor is an industry member or not. We do realize that certain glassware items are commonly sold to non-industry members, such as Christmas collectible steins or logoed glassware. A wholesaler charged with indirectly providing glassware to a retail licensee would have to demonstrate to the commission's satisfaction that the sale to the third party was a normal business transaction. That the gift to the retailer was not planned or known to the wholesaler, and that the wholesaler or beverage companies the wholesaler represents received nothing in return for the gift.

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Waitstaff Uniforms:

Question #1

Q. Can a wholesaler pay for uniforms to be made up with a combined logo (retailer name and beer brand) and give them to an account? If not, is the wholesaler required to charge the account at least the actual cost?

A. Under RSA179:11, I, a wholesaler may not give or sell a retail licensee any equipment or fixtures or property with which the business of the license is conducted. Staff uniforms are clearly used for the conduct of the business, and as such cannot be given or sold. See NHSLC reply to NH Distributors, 1/27/96. RSA179:28 allows product displays to be given to a retailer. [see definition of product displays]. Uniforms do not meet this exception. Uniforms are not addressed as an exception under RSA179:29; and as such are clearly not a retailer advertising specialty. Shirts are explicitly mentioned as "consumer advertising specialties" by the BATF (6.84 b 2), and thus may be given to retailers for unconditional distribution to the public only.

Question #2

Q. Can a wholesaler provide an on premises account or off premises account dual labeled X brand and Joe's Place T shirts free of charge?

A. Under RSA179:30 a wholesaler may give a retailer "consumer advertising specialties" for "unconditional distribution to the public". Unconditional distribution means put out for the consumer to take as desired, such as a basket of logoed matchbooks next to the cash register.

Question #3

Q. Can a wholesaler give wait staff T-shirts on promo nights?

A. No; t-shirts are a consumer advertising specialty, and thus cannot be given to licensees or their employees.

Question #4

Q. Can waitstaff wear those T-shirts on subsequent shifts?

A. If waitstaff used them on subsequent nights this would fall under the category of uniforms and as such would be property with which the business of the license is conducted, and a clear violation.

Q. Is the wholesaler responsible in this case?

A. A wholesaler is always responsible for what a retailer does with items provided free of charge, otherwise the law (RSA179:11) would be unenforceable. If a wholesaler gave a retailer logoed T-shirts for "unconditional distribution", and the retailer sold them for profit, used them as an inducement for purchase (as in a T shirt when you buy 4 of the beers advertised), or used them as waitstaff uniforms the wholesaler would be held responsible, as would the retailer, for a violation of RSA179:11 I.

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Draft Services:

Question #1

Q. Specifically, what draft services and or equipment may a wholesaler provide to a licensee?

A. Liquor Rules 506.03 (see attached laws and rules) states specifically what may be provided. As a short answer, the wholesaler may provide the necessary equipment to attach his draft barrel to the retailer's draft system. This includes taps, rods, and hose connections to the draft system. The wholesaler may also provide knobs (tap handles) designating brands of beer dispensed.

Question #2

Q. Is it true that a wholesaler can only provide the retailer the actual tapping equipment, meaning no faucet, no hoses and no shank?

A. These tap handles may not include faucets. A wholesaler may also instruct a licensee in the proper maintenance, cleaning, and use of draft equipment.

Question #3

Q. Can a wholesaler repair faucets, leaking or frozen lines, broken fobs, and severely soiled components?

A. It is always illegal for a wholesaler to provide a retailer with draft services not specifically allowed in statute or rule, whether for free or for a fee.

Question #4

Q. Can a wholesaler subsidize, pay, or enter into an agreement with a draft services supplier who sells and services draft equipment and/or sells on premises supplies?

A. A wholesaler may pay a draft services provider to perform any services at a retail account which the wholesaler is allowed to perform himself.

Question #5

Q. A customer is having a problem with a wholesaler's product dispensing properly. The wholesaler brings in a consultant to assist in analyzing the problem, and pays the consultant. The wholesaler then bills the retailer; is there a problem?

A. It is illegal for a wholesaler, or a firm employed by a wholesaler, to perform or recommend repairs, redesign, or other service of a non-routine nature. A wholesaler may use a consultant to determine whether a problem is the fault of his tapping equipment, however he may not pay for a consultant to check the rest of a retailer's draft system. It is equally illegal for a wholesaler to pay a third party to provide these services to a retailer, or to require a retailer to use a particular draft services company. It is perfectly legal to recommend draft services companies who the wholesaler feels do a good job.

Question #6

Q. An on-premises account won't clean his draft lines properly. The wholesaler is subject to quality checks by his vendor, and feels compelled to clean the lines to ensure proper product quality. Is this illegal and what are the options?

A. Quality control is not an excuse to provide services to a retailer which are forbidden by statute. If a wholesaler documents retailer problems in draft line service, the NHSLC may authorize the wholesaler to stop servicing or selling to the account; such documentation on file will also be available in a legal dispute on wholesaler performance with a vendor. Under NH law, a vendor may not legally require or request a wholesaler to perform illegal actions; such pressure should be reported to the commission.

Question #7

Q. A draft services company notices problems with a wholesaler's legally supplied tapping equipment. May the wholesaler pay the draft services company to correct the problem?

A. A wholesaler may instruct a retailer in the normal use and care of draft equipment. Nothing forbids a wholesaler from hiring a third party to perform this legal service. It is illegal for a wholesaler, or a firm employed by a wholesaler, to perform or recommend repairs, redesign, or other service of a non-routine nature. A wholesaler may use a consultant to determine whether a problem is the fault of his tapping equipment, however he may not pay for a consultant to check the rest of a retailer's draft system.

  • Q. What should I do when a retailer demands a draft system or other illegal services for a tap line?
  • Q. Is it reasonable to suspect that another wholesaler has paid for a tap when you have refused and his beer is put on?
  • Q. What do you do in that case?
  • A. Any time you are "pressured" to pay for a tap, you should report the incident to the commission, including the name of the licensee and the person doing the pressuring. This might not be applicable to a retailer just asking what do I get if I give you the line; the proper response in that case would be to sell the benefits of your product to his sales, and point out that other inducements are illegal.

  • A. In cases where you suspect that another wholesaler has stepped over the line, you should bring it to your trade committee first. In many cases the other wholesaler has not paid off either, and the account just realized he wasn't going to get anything. In a case where there is hard evidence of illegal action, such as employees being willing to make sworn statements that they witnessed or participated in illegal actions, or where invoices or other documents demonstrating the illegal action ar e available, you should report the problem to the commission at once.

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National Discount Programs:

Question #1

Q. Can a supplier enter into a deal at a chain headquarters to give his brand a price advantage by instituting store manager incentives?

  • Q. If illegal who is responsible?
  • Q. Are there safeguards in effect to protect a wholesaler?

A. It is not legal under NH law or BATF codes for an industry member to pay incentives for sale, pricing, or placement. (RSA179:11 II, BATF 8:51, 8:54, 6:21 d, and most directly 10:21.

  • A. So long as a wholesaler does not directly participate in the program by paying or delivering payments, or otherwise take part, the wholesaler would appear to not be legally responsible.
  • A. As far as safeguards, a wholesaler who feels harmed by such a program can collect some proof that the program exists (a simple allegation is not likely to help) and deliver it to the NHSLC. We would work with the BATF to investigate credible allegations which are backed by some evidence.

Question #2

Q. What is a wholesaler's recourse when one of his suppliers enters into an illegal incentive program?

A. No wholesaler should participate in an illegal program. If the supplier knows the program is not legal in NH and still pushes the holesaler to participate, a report to the NHSLC with evidence of the program and coercion would produce action, b oth at the state and federal level. Chapter 180 would give some protection to the wholesaler against vendor reprisal.

Question #3

Q. Are incentives for off premises licensees which are tied to volume, displays, and/or quantities of product to be purchased legal for wholesalers to offer?

  • Q. Are these legal for suppliers to offer?

A. RSA179:11 does not differentiate between on and off premises licensees. Price incentives posted with the commission, such as $10 rebate per barrel for monthly purchases over 100 are legal. This is a volume discount, just like a $3 discount for purchase of 100 cases. Tying any incentive to display or placement of beverage is illegal. Suppliers may not offer rebates to retailers in NH, since these rebates would not be part of posted prices. Such rebates would be money paid for placement under RSA 179:11 II, and an item of value under RSA179:11 I. Rebates are limited to prices posted with the commission by wholesalers for sale to retailers.

  • A. Suppliers may not attempt to control a wholesaler's posted prices, or retail prices. RSA180:2 VI, RSA179:33 III, IV.
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Beverage Manager and Owner Incentives and Giveaways on Licensed Premises.

Question #1

Q. Is it legal for a wholesaler to give free or discounted non-alcoholic beverages or any other goods, such as display racks, to a licensee in exchange for better pricing, ad features, or preferential aisle displays for product?

A. It is always illegal for an industry member to give a retail licensee anything for placement, pricing, or promotion. (RSA179:11 II) RSA179:28 makes it legal to give a licensee product displays subject to the $300 BATF limitation (exemption fro m 179:11 I, equipment, but not from 179:11 II); but RSA179:28 section I makes clear that this cannot be tied to purchases. BATF section 6:83 is the relevant BATF section; please note that state law is more restrictive, BATF allows conditioning on purchase of sufficient beverage for the initial display, whereas this is explicitly forbidden in state law.

Question #2

Q. Can a wholesaler or supplier give (or sell) entertainment/sporting event tickets to a retail licensee (or employee)?

A. Tickets may never be given to licensees. Tickets have value, and under RSA179:11 I no item of value may be given to a licensee. Since tickets are not equipment, they may be sold to licensees, provided such transactions are invoiced, are for at least the wholesaler's or industry members cost (actual cost, seats in a prepaid box must be costed as total payment for the box divided by # of seats/tickets ), and payment records are maintained. Tickets given to an employee of a licensee will be consid ered as inducements under RSA179:11 II if the employee has the ability to influence sales or placement of beverages.

Question #3

Q. Can a wholesaler indirectly purchase pouring rights by making a charitable donation to a licensee's charity of choice, or to any other intermediary?

A. RSA179:11 II forbids payment for placement, either directly to a licensee or to any intermediary. A donation to a designated charity is something in lieu of money for the purposes of this statute.

Question #4

Q. Can napkins, coasters, etc. be given to a licensee? What are limits?

A. Items permitted under RSA179:29 may be given to licensees. BATF no longer specifies a limit for these items (the category in BATF current rules is Point of Sale advertising items).

Question #5

Q. Can a wholesaler take an account to dinner, give an account a bottle of fine wine, etc.?

A. RSA179:11 is not meant to limit normal sales practices, such as conducting business over a lunch paid for by the salesperson. It does limit payment, so taking an account to an expensive dinner as thanks for a successful promotion, or buying an account a bottle of wine, would be illegal.

Question #6

Q. Are contests or promotions(such as a trip or entry into a contest for purchase of a quantity of beverages) for industry members legal?

A. Contests for industry members, whether retailers, wholesalers, or representatives are illegal. RSA179:30 II. Promotions paying for purchase of beverage (a trip for buying beverages) are, of course, illegal under RSA179:11 II. See NHD violation 6/28/99, commission warning letter.

Question #7

Q. Does the NHSLC have to be notified of promo nights or other event sponsorship?

A. The commission must be notified of all promo nights at which product tasting occurs (see Liq section 405). The commission should be notified prior to all promo nights, otherwise they could be considered as items of value. Event sponsorship on a licensed premises is likely to be illegal, depending on the terms of the agreements. All such agreements should be pre-approved.

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Merchandising:

Question #1

Q. Can custom Point of Sale be made for a licensee with both a beer brand and a licensee's name on the Point of Sale and if so, what are the dollar limits?

A. Point of Sale under RSA179:29 I may include the account name and brand. Please note that this is Point of Sale material for use inside a licensed account, not banners or other materials for outside display. There are no longer any BATF dollar limits for these items.

Question #2

Q. A wholesaler prints a banner with store name, brand logo, and price of beer for inside use. The account displays it in a window or outside. Is the wholesaler responsible?

A. The wholesaler is always responsible for any equipment furnished to a retailer. A signed invoice for the item, specifying interior use only, would be a strong indication of innocence, as well as a help if the retailer were fined for using the item incorrectly. A wholesaler reporting a violation to the NHSLC of a banner he supplied, with the note that the wholesaler had advised the retailer that the practice was illegal but the retailer refused to stop would also be proof of innocence.

Question #3

Q. A wholesaler provides a customized banner for an upcoming event such as a band. The banner is intended for inside use, but the retailer displays it incorrectly. Is the wholesaler responsible?

A. Yes. A banner (or anything else) advertising anything other than beer having to do with the retailer's business may not be provided to a retailer. Such a banner is equipment to carry on the retailer's business under RSA179:11, I. For legal banners see above.

Question #4

Q.A wholesaler prepares a banner for a retail account which says:

Superbowl Promotion
February 2 3:00-5:00 PM
Sponsored by Brand X
The banner is properly displayed inside the account. Is this advertising or equipment?
Q. PS If it is equipment what process might be legal to announce a promotion?

A. A promotional event sponsored by a wholesaler (ie a promo night) may be advertised on the licensed premises. Since the purpose is to advertise the wholesaler's brand and event, a banner may be provided; this would be similar to POS advertising .

A. If the event is the retailer's, and is not going to be attended by a salesperson (ie not a promo night) A banner may not be provided; this is equipment being used for the retailer's purposes. As an example, a banner listing the bands to appear in the next month would be considered as equipment.

Question #5

Q. Can a wholesaler bring an air hockey table or other similar game onto a licensed premises as part of a promo night or other promotion?

Q. Can a wholesaler sponsor and provide equipment for an ongoing series of promotion nights which require players to go to specific licensed premises?

Q. Can a wholesaler award prizes of value beyond consumer advertising items as part of this promotion?

Q. Would it matter if the finals and the awarding of the prizes were not held on a retailer's premises?

A. A wholesaler may not provide a retailer any form of a draw as part of a promo night. In addition a wholesaler may not provide a retailer other items of value, such as paying for entertainment. This promotion brings an item of equipment onto a retailer's premise for a game (entertainment). There is no difference between providing an air hockey table and a pool table or sound system; this is an item of value and is prohibited.

A. Secondly, any promotion which encourages or requires individuals to go to a retailer is a draw and prohibited. Promo nights may only be advertised within the premises on which they occur. The requirement that local winners go to contests held at another retailer are an item of value to that retailer; the advertising of that location at the retailer where the initial contest is also advertising a promo night off the licensed premises.

A. Lastly, a contest which requires that participants go to a specific retailer to enter or participate is a draw for that retailer and an item of value.

A. Promo nights are solely for the advertisement of a wholesaler's products to consumers who are already present at a retail establishment. Any promotion which encourages consumers to go to a retail establishment are illegal as a draw under the provisions of RSA179:11.

Question #6

Q. Can any of the following advertising pieces be used on a display or over a cooler in a retail off premises account as an enhancer if it is removed from the account when the display comes down?
Skis
Blow up chairs
Kayaks
Beach chairs
BBQ Grills
Coolers
Toboggins
Snow boards
Canoes
Rafts

A. Any item which you place on a retail premise as part of a display is given to the retailer; ie when you leave it on his premises under his control it is his. You are not permitted to have contracts with retailers for co-operative advertising, therefore you cannot legally require the return of this item as a condition for its display. The only items which you may provide a retailer are consumer advertising specialties (which must be placed for free distribution to the public), display racks, and POS advertising. All of these items have significant value and use beyond POS advertising, and are thus prohibited. As a means of determining what may be allowed, ask the question. If a retailer kept this product for his own use, would it be a violation? If the answer is yes, then it is not permitted in a display.

Question #7

Q. Can skis, chairs, or coolers be used as a display enhancer/dealer loader with an entry box for a consumer give away?
Q. Is this legal if the item is removed from the retail premises and the raffle is conducted at the wholesaler's place of business?

Q. Can we produce a banner stating Enter here to win skis?

A. You may not leave dealer loader items on a retail premises. Nothing in NH statute recognizes display enhancers/dealer loaders. They are not consumer advertising specialties, retailer advertising specialties, or product displays. These are the only items which may be given to retail licensees. When you leave an item on a retailer's premises as part of a display, you are giving that item to the retailer, as you are giving him control of it. A wholesaler may not retain control of advertising on a retailer's premises; that would be co-operative advertising or control of a retailer's premises/business and a violation of RSA179:11 I.

A. You may put a poster of a contest item on a display with entry blanks and an entry box. Nothing in statute prohibits a banner advertising your consumer promotion within a retail establishment. Please note that contests or promotions limited to a specific retailer or retail chain are illegal. This is co-operative advertising and an item of value to that specific retailer or chain.

Question #8

Q. If the above is ok, what about on premises display items?

A. Not legal, see above.

Question #8

Q. If a third party (non-licensee) is conducting an on premises promotion, can we conduct a promotion in conjunction with them? Example Manchester Monarchs initiate an appearance and autograph session with an on premises account, can Great State be present to raffle t shirts, hats, key chains, etc.? If the Monarchs supplied game tickets to raffle off, could our sales rep conduct the raffle or would the Monarchs have to run their own raffle? Tickets would be supplied by the Monarchs.

A. You should not conduct promotions at licensed accounts with non-licensees, except for promotional agencies working under your control. If the licensed account contacted you to do this promotion with a team, you would be supplying him an item of value; ie he wants you there to help with his promotion. If the non-licensed entity contacts you about a co-promotion the same rules as for a promotional agency would apply; ie the other non-licensed entity can do nothing that your representatives cannot do. In the case of a Monarchs promotion, such as the recent signing at Billy's Sports Bar, no industry member can pay to advertise the promotion or help to conduct it. The assumption in this case would be that the event was a co-operative event with the team and the industry member, and that it provided something of value to the retail licensee in violation of RSA179:11 I.

Question #9

Q. Can a wholesaler or brewer hire a third party or promotional agency to conduct an on premises promotion?

Q. Do they need to be accompanied by a wholesaler or brewer representative if they are just running games or raffling off advertising specialties?

Q. If a brewer or wholesaler can use an outside agency, what can they do? Can they raffle items, bring in games, a public address system, play music? When does it change from an extension of a wholesaler's employment to an item of value to the retailer?

A. Yes, provided the unlicensed person does not sell or promote purchase of alcohol. In addition, the third party/promotional agency should not be a draw for the account; ie hiring the Dallas Cowboy cheerleaders to appear at XYZ Sports bar would be an item of value for that account.

A. At any promotion of alcohol a licensed person must be in charge. If a wholesaler pays an agency to assist a retailer in the retailer's promotion and using his license, that is providing an item of value; therefore a licensed industry representative must be present and in charge.

A. An outside agency can only do things that a wholesaler or other industry member is allowed to do. Since they must be working under the direct supervision of a licensed individual, that individual is responsible, as is the industry member under whose authority he/she holds a license. The only items allowed for a promo night are retailer and consumer advertising specialties. Games, sound systems, musical entertainment, or any other activities which would constitute a draw are illegal.

Question #10

Q. Can a wholesaler use games to give away raffle items, as long as everyone in the establishment has an opportunity to participate? For example, cards, dice, wheel of fortune.

Q. Is there a dollar figure for the game (racing game, hockey game, video game)?

Q. Does it matter whether the game (equipment) remains on the premises after the event?

A. An industry member may not bring equipment onto a licensed premises to provide entertainment. As an example, a wholesaler cannot bring in an air hockey table for a tournament, with advertising specialties provided to winners. This would constitute providing entertainment. If the tournament was advertised off the premises (or was part of an ongoing series of contests at various licensed premises) this would also be a clear draw for the licensee.

A. In addition, gambling on retail premises is always illegal (RSA179:19 VI). Games of chance for prizes could constitute gambling, which is a very serious violation for a licensee, and is subject to enhanced penalties under liquor rules. As an example, every patron is given 5 tokens, and is then encouraged to wager these tokens in games, with the winner awarded a prize.

A. Lastly, everyone in an establishment may not participate in promo night events. It is illegal to advertise to persons under 21. Allowing participation by or giving prizes to persons under 21 would constitute advertising to minors under Title XIII, and is a violation of RSA179:31 VII.

Question #11

Q. At the January 8 meeting a raffle ticket was given as an allowable method of distributing advertising specialties at a promo night. Is it correct that, so long as there is no inducement to purchase, that games of chance are how products are given to customers?

A. Please refer to the above reply. A raffle where every eligible person is given a ticket for a drawing is an acceptable method of distribution. (RSA179:30 II) Consumer advertising specialties may be distributed directly to consumers. The distribution must be unconditional. The method of distribution is not specified, so long as it does not relate to purchase of alcohol. Anyone of legal age (21) must have an equal chance of receiving the items. Games where patrons are given tickets to wager in games might constitute gambling. Games where equipment is brought in for entertainment are always illegal.

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Wholesaler To Employee Uniforms & Gifts:

Question #1

Q. If a licensee has purchased uniforms with their name and a beer logo from industry members in the past can they continue to use them?

A. These uniforms are the licensee's property at this time, and thus are not subject to RSA179:11 violations. The licensee should have copies of invoices and/or checks to show that these items were purchased prior to the wholesaler meeting of 1/ 8/02.

Question #2

Q. Can a licensee purchase beer brand T shirts or hats to give away themselves or to give to employees as they choose?

A. An industry member may sell (or give) consumer advertising specialties or retailer advertising specialties to retail licensees. T shirts and hats are consumer advertising specialties. Employees are excluded from receiving items in this category. The statutes authorize distribution to the general public, and a licensee or his employees are industry members, not the general public. The statute is RSA179:30; the exclusion is made clear in section II.

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Wholesaler & Charitable Events:

Question #1

Q. Can a wholesaler/brewer participate in a retailer's charity event by purchasing a foursome or spots in the event?

Q. If an entry fee is needed to participate, should the check go directly to the charity or to the golf club?

A. No, you may not participate in a retailer's charity event. RSA179:11 II states that "No industry member shall contribute or pay any money to any (retail industry member)--- association, group, or organization thereof." This would prohibit participating in any way in a grocer's association fund raiser, whether for charity or not.

A. A charity event which has nothing to do with the alcohol industry or retailers is not covered by RSA179:11. You may participate in such events; checks should go directly to the charity. The fact that the charity golf tournament or ski race is held on a premise which holds a license is not material, unless you combine the event with significant advertising, such as a promo night or signage, which benefits the licensee.

Question #2

Q. Can a wholesaler provide items for auction to benefit a charity, other than retailer/consumer specialties? Can a wholesaler bring prizes for an event, such as golf bags or balls, provided such items don't end up with the retailer?

A. RSA179:11 does not apply to charities which have no relationship to a retail licensee. RSA179:31 XII does prohibit certain types of advertising on behalf of charities, and RSA179:44 prohibits gifts of alcohol. Nothing prohibits gifts of items such as skis directly to a charity; all awards should be handled by the charity and not involve the wholesaler or advertising of beer; an acknowledgement that the item was provided by a wholesaler is legal. Any gifts to a charity which provide a direct draw to a retailer are of course illegal; ie a wholesaler organized or sponsored ski race with combined promo night at a licensed ski area with the profits to charity would be illegal.

Question #3

Q. Can a wholesaler participate in and bring prizes to a licensed premises for events if there is no licensee association with the event other than as host location?

A. See above. A wholesaler may not use a charity event to do anything on a licensed premises which the wholesaler could not do if there was no charity involvement. You may attend such events by purchasing entries from the charity. You may give items to the charity which they use as they see fit to raise money. You may not conduct charity events on a licensed premises as a glorified promotional night.

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Brand Education:

Question #1

Q. 7. Can a wholesaler or brewer host retailers at a brewery for purposes of brand education?

A. Yes. See BATF section 6.94 for details of what is permitted. Payment for travel or lodging is not permitted.


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URL: http://nh.gov/liquor/trade_practice.shtml Updated: 05/04/04 12:17:55  
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