State Distribution Laws
Nevada
License Needed to Self-Distribute: Yes
Statute: Nev. Rev. Stat. Ann. § 369.382
Breweries in Nevada are not permitted to self-distribute. However, in very limited circumstances brew pubs are permitted to sell beer directly to an estate distillery or a retailer holding a special event permit.
If a brewer has a distribution agreement with a wholesaler, the brewer cannot terminate or not renew a distribution agreement without good cause or without providing the wholesaler with proper notice. A brewer must send the wholesaler a notice of its intent to terminate or not renew the agreement, state their reasons for doing so, and the date it will take effect. They must send this notice at least 90 days before taking any action and allow the wholesaler 60 days to correct the problem. Good cause is when a wholesaler fails to comply with an essential and reasonable provision of their agreement, or the wholesaler acts in bad faith toward the brewer. Brewers who produce less than 2,000 barrels of beer per year do not have to have good cause for terminating a distribution agreement or giving the wholesaler a chance to fix the problem, but must still provide the wholesaler with 90 days’ notice of their intent to terminate the agreement.
If a brewer terminates an agreement without good cause, without giving notice, or without giving the wholesaler a chance to correct the issue, the wholesaler can bring a claim for damages. However, a brewer does not need to follow the notice requirements or give the wholesaler an opportunity to cure the problem if:
- The wholesaler becomes insolvent or files for bankruptcy
- The wholesaler’s license is revoked or suspended for more than 31 days
- A 10% or more owner of the wholesaler is convicted of a felony which affects the wholesaler’s ability to sell the brewer’s products
- The wholesaler sells outside of its territory
- The wholesaler fails to pay the brewer for product within 7 business days after receiving written notice for payment from the brewer
- The wholesaler discontinues selling the brewer’s products
In addition to the termination restrictions, brewers are also not permitted to:
- Set the resale price of their products
- Force wholesalers to accept products they haven’t ordered (but they can impose reasonable inventory requirements)
- Restrict a wholesaler’s ability to sell other products or brands
- Reward or penalize wholesalers for meeting or failing to meet sales quotas
- Increase the price of products after delivery to the wholesaler
- Require a wholesaler to pay the difference between suggested retail price and actual prices
- Require a wholesaler to submit financial information associated with other products (does not include general financial information for determining overall financial condition of wholesaler)
- Require a wholesaler to contribute to an advertising fund
- Restrict the free association between wholesalers
- Discriminate between wholesalers
- Disapprove of the transfer of the wholesaler’s business without providing material reasons for their disapproval
