SB128 Alabama 2015 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Session

Regular Session 2015

Title

Alcoholic beverages, beer suppliers and wholesalers, authorize breweries to enter into contracts with beer wholesalers, provide termination or changing of their relationship with beer wholesalers, Sec. 28-9-6.1 added; Secs. 28-9-2, 28-9-6 am'd.

Summary

SB128 would let small breweries contract with beer wholesalers to end or change their distribution relationships, with a new discontinuance process and compensation for wholesalers.

What This Bill Does

SB128 creates a separate path for small suppliers to terminate or alter their agreements with wholesalers. It adds a new Section 28-9-6.1 that requires a 30-day written notice, identification of successor wholesalers, and compensation to the affected wholesaler equal to the fair market value of the distribution rights, with arbitration if they cannot agree. It defines a small supplier as one whose sales to wholesalers are 20% or less of its total sales, and it notes that existing protections for large suppliers do not apply to small suppliers.

Who It Affects

• Small breweries/suppliers: can terminate or change relationships with wholesalers under a defined process and 20% sales threshold.
• Beer wholesalers: may lose distribution rights when small suppliers discontinue sales, receive compensation, and may work with successor wholesalers or go to arbitration to determine value.

Key Provisions

• Defines Small Supplier as a supplier whose annual sales to a wholesaler do not exceed 20% of total sales.
• Allows small breweries to enter enforceable contracts with wholesalers to terminate or change their relationship.
• Adds Section 28-9-6.1 establishing a 30-day notice process for discontinuance by small suppliers, identifying successor wholesalers, and compensation equal to fair market value of distribution rights, with arbitration if necessary.
• Notwithstanding existing law, the protections in Section 28-9-6 do not apply to small suppliers; small suppliers operate under the new discontinuance process.
• Effective date: immediate upon governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alcoholic Beverages