State Distribution Laws

License Needed to Self-Distribute: Yes
Statute: RSA 178:12; RSA 178:12-a; RSA 178:13

New Hampshire Statute

In New Hampshire, beverage manufacturers that produce less than 15,000 barrels per year can self-distribute up to 5,000 barrels to retailers. Brewers holding a nano-brewery license (producing less than 2,000 barrels per year) or brew pub license (producing less than 2,500 barrels of beer and/or cider per year) can also self-distribute.

If New Hampshire brewers decide to use a wholesaler to distribute their products, they must enter into a written agreement with those wholesalers and must provide those wholesalers with exclusive territories. Additionally, brewers cannot:

• 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
• Require a wholesaler to purchase one product as a condition of purchasing another
• Restrict the free association between wholesalers
• Unreasonably require or restrict a wholesaler’s change in management
• Unreasonably prevent or delay the transfer of the wholesaler’s business

If a brewer has a distribution agreement with a wholesaler, the brewer cannot modify, terminate, or not renew a distribution agreement without good cause or without providing the wholesaler with proper notice. If a brewer terminates the agreement without good cause, the brewer must pay the wholesaler reasonable compensation for the diminished value of the wholesaler’s business. Good cause includes:

• The wholesaler becoming insolvent or filing for bankruptcy
• The wholesaler’s license being revoked or suspended that adversely affects its ability to sell brewer’s products
• The wholesaler failing to comply with a reasonable and material requirement imposed by the brewer
• The wholesaler engaging in fraudulent conduct in its dealings with the brewer

Additionally, a brewer must send the wholesaler a notice of any deficiency in its territory and provide the wholesaler with a reasonable chance to correct the issue. If the wholesaler fails to correct the issue, the brewer must provide the wholesaler with 90 days’ written notice of its intent to modify, terminate, or not renew the agreement, and state the reasons for doing so. These notice requirements don’t apply if the brewer is terminating the agreement due to:

• The wholesaler becoming insolvent or filing for bankruptcy
• The wholesaler’s license being revoked or suspended that adversely affects its ability to sell brewer’s products
• A conviction or guilty plea that has an adverse impact on the wholesaler’s ability to sell brewer’s products
• The wholesaler willfully breaching a material provision of their distribution agreement
• The wholesaler attempting to transfer its business without the brewer’s consent
• The wholesaler failing to pay the brewer amounts when due upon demand
• The wholesaler engaging in fraudulent conduct in its dealings with the brewer

Fun Fact: New Hampshire has no sales tax, making their enormous, state-run liquor stores travel destinations. But if you’re looking for beer, you won’t find any there, since they only sell wine and spirits.