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Friday, July 19, 2013

NYSLA Revises Proposed Advisory re "Limited Availability" Sales

Earlier this week the New York State Liquor Authority ("NYSLA") revised it's proposed advisory regarding wholesaler and importer's ability to allocate "limited availability" alcohol beverage products.  We have created a redline highlighting the changes made to the earlier version of the advisory.

On Wednesday, July 17, the NYSLA Board held a hearing to discuss the proposed advisory.  Board Chairman Dennis Rosen voiced his concern that wholesalers and importers may use the "limited availability" model to shut out retailers.  The Chairman stated that an allocation whereby all inventory of a particular product was allocated exclusively to on-sale accounts, thereby shutting out off-sale accounts, would be "presumed to be improper," though he later stated that such a split may be appropriate in certain situations, and that the importer/wholesaler would have the opportunity to explain why such a split is reasonable.

The Board stated that it welcomed written comments submitted prior to the close of business eastern time on Friday, July 19.  The Board will vote on the proposed advisory during the next meeting, scheduled for July 31.

If approved, the current version of the Proposed Advisory will be effective as of October 2013.

For more information or assistance on alcohol beverage law / wine law, contact John Trinidad (jtrinidad@dpf-law.com).

This post is made available for general informational purposes only and none of the information provided should be considered to constitute legal advice 

1 comment:

  1. Did not know, as I don't reside NY, that the govt. sticks its nose into who you can sell certain items to. "Presumed to be improper"????? No evidence, no trial, automatic conviction? How many un-intended consequences arise from this interference with free markets? Trying to protect the off-sale customer by denying the on-sale an oppty for a close-out deal, or to buy a sixpack of Harlan? That helps the common consumer?

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