Retail Advertising Glassware
Affecting Beer Manufacturers and Retail Licensees
Disclaimer: Industry advisories are not regulatory, nor do they have the force of law. These advisories serve merely to help clarify what statutes/regulations mean. Please consult the statute, regulation, and/or an attorney before taking any action to ensure compliance with the law.
Effective January 1, 2020, and until January 1, 2023, newly enacted Section 25600.05 of the Business and Professions Code (AB-1133) authorizes beer manufacturers, further defined as licensed beer manufacturers (Type 01 or 23), the holder of an out-of-state beer manufacturer’s certificate (Type 26), the holder of a certificate of compliance, or the holder of a beer and wine importer’s general license (Type 10), without direct or indirect charge, to give up to five (5) cases total of retail advertising glassware to an on-sale retail licensee, per licensed location, each calendar year for use at the licensed location. There are a number of requirements that must be met to exercise this privilege.
1. This provision is an exception to the general prohibition against a licensee giving any premium, gift or free goods in connection with the sale or distribution of alcoholic beverages per Section 25600(a)(1) of the Business and Professions Code.
2. The following definitions apply to this exception:
- “Case” means a box containing up to 24 pieces of glassware.
- “Glassware” means a single-service glass container or non-glass container capable of holding no more than 23 ounces of liquid volume and which is intended for the service of beer.
- “Retail advertising glassware” means glassware bearing conspicuous advertising of beer required of a sign.
3. The giving of retail advertising glassware shall not be conditioned, directly or indirectly, on the purchase or sale of any product, including, without limitation, any beer manufactured, produced, imported, sold, marketed, or in any other way promoted or represented by the beer manufacturer giving the retail advertising glassware.
4. Retail advertising glassware provided, pursuant to this section, shall only be delivered by the beer manufacturer providing it, directly to the licensed premises of the retailer receiving the glassware. This means that the beer manufacturer providing the glassware may not provide a large quantity of glassware to a retailer for the retailer to distribute itself to each of its licensed premises.
5. A beer wholesaler shall not directly or indirectly underwrite, share in, or contribute to the costs of glassware or any costs of transportation or shipping, nor serve as the agent of the beer manufacturer to deliver, stock, or store glassware for an on-sale retailer. The beer manufacturer must itself distribute the glassware authorized by this provision.
6. The five (5) case total that beer manufacturers may give to retailers is the total number allowed per licensed retail premises, NOT per brand. Further, this limitation is per manufacturer, regardless of how many beer manufacturer licenses the beer manufacturer holds or has an interest in.
7. An on-sale retail licensee may accept, without direct or indirect charge, up to ten (10) cases total of retail advertising glassware, per licensed location, from various licensed beer manufacturers each calendar year for use at the licensed location. The retail licensee shall not sell or give away the glassware nor return it to a manufacturer for cash, credit, or replacement. The on-sale retail licensee shall not base the purchase of a beer manufacturer’s product(s) on the receipt of retail advertising glassware by that beer manufacturer. It is the retailer’s responsibility to return or reject glassware that exceeds the ten (10) case limit.
8. A beer manufacturer shall file records with the Department detailing glassware provided to an on-sale licensee pursuant to Section 25600.05 within thirty (30) days of the delivery of the glassware. The following information must be submitted to the Department:
- Name of Manufacturer Providing the Glassware
- License Number of the Manufacturer
- Premises Address of the Manufacturer
- Name of Retail Licensee Receiving Glassware
- License Number of Retail Licensee
- Premises Address of Retail Licensee
- Date Glassware Provided
- Number of Glasses Provided
- Style of Glass Provided
- Size of Glass Provided (in ounces)
- Description of Markings on Glassware
This information must be submitted using either the attached glassware report template or via an Excel or CSV formatted file. Each beer manufacturer may email this information to the Department at email@example.com. Additionally, a beer manufacturer shall keep and maintain records for a three-year period of all glassware given pursuant to this section.
9. On-sale retail licensees shall keep and maintain records for a three-year period of all glassware received pursuant to Section 25600.05 and of all other retail advertising glassware purchased or otherwise received. Such records shall be maintained by the on-sale licensee at the licensed premises that received the glassware directly from the beer manufacturer and shall be produced to the Department promptly upon request.
For information regarding reporting requirements, please contact the Trade Enforcement Unit at TEU@abc.ca.gov.