State Distribution Laws
Arizona
License Needed to Self-Distribute? Yes
Statute ? A.R.S. § 4-205.08
Arizona’s microbrewery license allows brewers to self-distribute their products to retailers. A brewer can only qualify for a microbrewery license so long as it is brewing less 93,000 gallons of beer per year.
Additionally, Arizona has some brief, general laws regarding the brewer/wholesaler relationship. The laws simply state that a brewer cannot terminate or refuse to renew a distribution agreement with a wholesaler without good cause, and that the termination or non-renewal must be done in good faith. Arizona considers good cause to be the wholesaler’s failure to comply with a provision of the distribution agreement, provided that provision isn’t “unconscionable”. If a brewer terminates a distribution agreement without good cause, or not in good faith, a wholesaler can recover damages and attorney’s fees as a result.
