State Distribution Laws
California
License Needed to Self-Distribute: Yes, Registration
Statute: Cal Bus & Prof Code § 23357
Licensed brewers in California may sell beer to any person holding a license authorizing them to sell beer.
California also has some rules about the brewer/wholesaler relationship. Brewers must provide wholesalers with a written distribution agreement, and designate territories for the distributors. The distribution agreement must also be filed with the California Department of Alcoholic Beverage Control and cannot select a dispute venue that is outside of the State of California.
Brewers also cannot terminate a distribution agreement if a wholesaler fails to meet an unreasonable quota. Brewers also cannot unreasonably withhold their consent to the transfer of a wholesaler, and those that do are liable to the wholesaler for damages. If a brewer sells their brewery, and the buyer does not want to keep a distribution agreement, the buyer must notify the wholesaler by certified mail, return receipt requested, of their intent to terminate the agreement, and pay the wholesaler fair market value for the lost business.
