The State Liquor Authority has reversed its own policy on whether beer distributors can replace out-of-code product in retail stores.
In June 2007, SLA Counsel Thomas Donohue had issued an official “Opinion of Counsel” saying retailers could not return out-of-code beer to their wholesaler for replacement or credit.
In a new Opinion of Counsel dated January 2, 2008, Donohue said wholesalers can replace out-of-code product but cannot give retailers credit against outstanding balances for out-of-code product returned.
He took the same position on seasonal product, saying wholesalers may replace it with other seasonal or non-seasonal product but cannot give credit.
Donohue re-examined the issue at the behest of several brewers and beer wholesalers who disputed his previous silly conclusion that replacing out-of-code beer was illegal because it constituted a “gift or service” that would induce the retailer to buy the brewer’s or wholesaler’s product.
The wholesalers also asked permission to replace product that is about to become out of code or out of season at one store and sell it to another retailer who may be able to resell it before the expiration. Donohue said that’s fine, as long as such transactions are done within a reasonable time period – he specified 30 days – before the beer becomes out of code or out of season.