State Distribution Laws
Ohio
License Needed to Self-Distribute: Yes
Statute: ORC Ann. 4303.02; ORC Ann. 4303.022; ORC Ann. 4301.24
Brewers in Ohio that brew less than 1,000,000 barrels per year are eligible to obtain an A-1C Permit which allows them to self-distribute to retailers.
Ohio brewers that use wholesalers to distribute their products must enter into written distribution agreements with them and provide them with an exclusive territory. Brewers and wholesalers also cannot terminate, decline to renew, or substantially change the territory without just cause, or without giving the other party 60 days’ written notice of the change as well as the reasons for the change. Notice is not required if either party has a petition for bankruptcy filed (and for involuntary petitions, if the petition is not dismissed within 30 days), or has their license suspended or revoked for more than 30 days. If either party terminates the agreement, the brewer must buy back the wholesaler’s current inventory at the laid-in cost of the wholesaler, including freight. Additionally, brewers cannot:
- Require wholesalers to submit financial statements as a requirement for keeping their distribution agreement
- Withhold delivery of product or change the wholesaler’s quota without reasonable cause
- Coerce a distributor into contributing to an advertising fund controlled by the brewer
- Unreasonably withhold their consent to a transfer of the distribution agreement
If a brewer or wholesaler breaches any of the provisions above, they will be liable for the reasonable damages sustained by the other party.
