3VAC5-30-10   Rotation and exchange of stocks of retailers by wholesalers; permitted and prohibited acts

Although the Virginia Beer Wholesalers Association and its members generally support most of the proposed amendments to the Tied House regulations, they believe that 3VAC5-30-10 requires an important clarification regarding the exchange of “discontinued” products.  The issue had not presented itself until well-after the proposed regulations were published and the initial comment period closed, but VBWA believes that the Authority should incorporate the change in the final regulations.

Section 3VAC5-30-10g states:

Alcoholic beverages may be exchanged on an identical quantity and brand basis for quality control purposes. Where production of the product has been discontinued, the distributor may exchange the product for a product from the same manufacturer on an identical quantity and comparable wholesale price basis. Any such exchange shall be documented by the word "exchange" on the proper invoice.

VBWA believes that the intent of the regulation is that “discontinued” products, like any other product, may be exchanged only for quality control purposes.  A “discontinued” product that is exchanged for quality control purposes may be replaced with another product from the same manufacturer.  Otherwise-saleable beer, however, may not be exchanged for a different beer product merely because the manufacturer discontinued the original beverage.

Consequently, VBWA urges that the Authority consider inserting “for quality control purposes” into the second sentence of 3VAC5-30-10g, as follows:

Alcoholic beverages may be exchanged on an identical quantity and brand basis for quality control purposes. Where production of the product has been discontinued, the distributor may exchange the discontinued product for quality control purposes with a product from the same manufacturer on an identical quantity and comparable wholesale price basis. Any such exchange shall be documented by the word "exchange" on the proper invoice.

VBWA believes that this small change will prevent future confusion in the marketplace.

3VAC5-30-40   Deposits on containers required; records; redemption of deposits; exceptions

The Virginia Beer Wholesalers Association and its members strongly oppose the  proposed wholesale elimination of the minimum deposit requirements for kegs, tapping equipment, and other durables provided to retailers by beer wholesalers.  The proposed changes provide no meaningful relief to either wholesalers or retailers as some deposit is still required to be collected and refunded on the exact same items and recorded in the exact same manner as under the current regulation.  Only the minimum permissible deposit has been eliminated.  Those minimum deposits have been in place in the regulation for well over than thirty years without change, so it is not as though keeping such values updated has presented a high regulatory burden for the Authority.  VBWA is not opposed to streamlining the number of items for which deposits must be collected and recorded, but believes the elimination of the minimum amounts alone to be a wholly-unnecessary exercise.