Distributors

We have extensive experience working with new “niche” entrants to the alcohol industry and experienced players who are diversifying with new brands from different segments of the industry or implementing innovative business concepts to strengthen their market positions.

We provide guidance and assistance for start-up issues ranging from warehouse and vehicle procurement and capitalization to market penetration and mid- to long-term planning.

We handle alcohol beverage licensing at the federal, state, and local levels for locations throughout North America. Additionally, we work with clients from all tiers of America’s three-tier system to secure all required operating and collateral alcohol beverage licenses associated with their businesses, including local health, safety, and occupational permits.

GrayRobinson professionals also assist clients in establishing, preserving, and terminating wholesale distribution relationships, as well as negotiating and preparing distributorship agreements.

We understand that a brand is more than a label. From initial appointment through registration and market rollout, we assist clients with the creation and promotion of their new products to assure compliance and enhance prospective market success. Our regulatory guidance for brand development encompasses compliance with federal product formulation and labeling requirements, state brand registrations, and practical, experience-based input on brand development.

Preparation and negotiation of key contracts are vital to success in the alcohol industry. Our services in this area include drafting distribution agreements with suppliers, sub-distribution agreements with other licensed wholesalers, private label production contracts, import agreements, etc.

Because it is a heavily regulated industry, alcohol beverage distributors must produce and maintain accurate and complete records. Moreover, because it is a heavily taxed industry, wholesalers are obligated to meet their federal and state taxation responsibilities. Failure to do so can jeopardize a wholesaler’s licensure, which directly impacts their ability to remain in business. We provide comprehensive assistance with taxation and record-keeping responsibilities.

With the unprecedented proliferation of brands and industry members, the ability to distinguish a particular distributor or a specific brand is fundamental to success. While advancing technology presents extraordinary new opportunities for marketing and promotion, the regulatory restrictions applicable to alcohol beverages produce concomitant compliance risks. Our Alcohol Industry Team provides specific advice regarding marketing, advertising, and promotional activities, including issues relating to tastings and samplings, social media marketing, stealth and guerilla marketing, and the use of third-party promoters and service providers.

Unlike any other consumer product, alcohol beverages present industry members with huge compliance challenges because the laws and regulations of every state are different.   For interested parties with no prior experience in the industry – as is often the case with Merger and Acquisition activity involving private investment funds or financial institutions for whom selling alcohol is not a primary endeavor – regulations predicated on concepts such as “tied-house evil” and “mandatory three-tier” can be especially bewildering to comprehend, and difficult to follow. We counsel clients on trade practice and compliance issues at the federal, state, and local levels on issues ranging from M&A guidelines, product recalls, and brand sponsorships, to supplier relations and restrictions on dealings with the retail tier.

Legislative change is rarely easy, but sometimes it is vital to development and growth. Issues can range from focused matters, such as IRC coupon redemption regulations to more expansive issues, such as legislative initiatives that attempt to strengthen (or weaken) comprehensive state “franchise” protections for distribution relationships. We have proven experience in securing needed legislative changes for clients, working with alcohol industry members to design and implement strategic public relations and legislative lobbying campaigns, including the drafting of proposed legislation and regulatory rulemaking.

In a heavily regulated industry, the risks of regulatory enforcement are always substantial. In especially competitive markets, these risks often escalate because competitors do not hesitate to complain to regulators whenever they perceive an alleged violation that arguably yields an unfair advantage in the marketplace. Whether in the form of an audit, subpoena for records, or institution of formal administrative proceedings, our Alcohol Industry Team professionals are experienced at protecting clients’ rights and defending their interests against administrative actions at the federal or state levels.

Disputes can arise from any number of sources: government agencies, members of the public, and even other alcohol industry members. Whether those disputes ripen into litigation often depends on the initial actions and reactions of the relevant parties. Our experience proves that skilled communication and strategic planning can often avert litigation, saving all parties time, effort, and expense. Our unique combination of lawyers and former regulators, along with our experience of representing all tiers and segments of the industry, enable us to offer alcohol industry clients unparalleled mediation capabilities that can identify key issues, overcome cross-tier or inter-company obstacles, and resolve disputes before control is ceded from the parties to the courts. When mediation is not an option, our trial lawyers have decades of experience with litigation and arbitration, including supplier termination, intellectual property protection, and product liability matters.

We use the experience and knowledge of our Alcohol Industry Team attorneys and former regulators to develop tailored education and training programs that emphasize best practices while encouraging compliance. We can devise virtual or in-person programs that add value by increasing employee education about alcohol trade practice DOs and DONTs while reducing compliance and liability risks.

Our attorneys and former regulators stay current on industry developments and work to identify developing trends ahead of the market curve. That prowess can be invaluable for wholesale distributors who seek a competitive and strategic edge. We offer clients leading-edge industry research and reports that provide critical information and insights needed to make important mid- and long-range business decisions. Our Alcohol Industry Team synthesizes complex information and makes it understandable so our clients can stay ahead of emerging trends.