Relationships with Beverage Alcohol Manufacturers

Grocery Store and Convenience Store licensees are permitted to work with beverage alcohol manufacturers when advertising and promoting beverage alcohol products in their stores. However, licensees are not allowed to accept any kind of benefit or inducements (sometimes referred to as trade spend) from a beverage alcohol manufacturer or a person acting on behalf of a beverage alcohol manufacturer.  A ‘benefit’ could be financial/monetary or non-financial (e.g., a fridge) – in both cases these benefits are not allowed.

Grocery Store and Convenience Store licensees are also prohibited from requesting any kind of benefit or inducements / trade spend from a beverage alcohol manufacturer. This includes things  such as demanding that a manufacturer pay for their advertising or asking a manufacturer or supplier to pay any kind of fee for preferential access to the licensee’s shelf space.

Restrictions on Inducements / Trade Spend

An inducement can include money, benefits or services from a manufacturer to a licensee.

 Examples of prohibited/forbidden inducements or trade spend include, but are not limited to:

• Monetary Benefits: Compensation from manufacturers for discounts, rebates or promotional funds.
• Exclusivity: Restricting sales of the manufacturer’s products to only their store in return for any kind of benefit from that manufacturer.
• Shelf Space: Giving the manufacturer’s products special or exclusive placement in their store in return for some kind of benefit from that manufacturer.
• Product Listings: Requiring or accepting payment for the purpose of including the manufacturer’s products in their inventory.
• Promotional Activities: Receiving compensation from a manufacturer for merchandising, marketing or promotional activities (including loyalty programs or reward marketing programs which are receiving direct or indirect monetary benefits from a beverage alcohol manufacturer).
• Physical Improvements: Receiving financial or other support from a manufacturer to complete renovations to a licensee’s store, lighting, furniture etc.
• Equipment: Receiving refrigeration equipment, including coolers, or other equipment for free from a manufacturer, or sold by a manufacturer with conditions related to the sale of their products (such as exclusivity) in the store.
• Services: Stocking products on shelves for the licensee.

Grocery Store and Convenience Store licensees may work with beverage alcohol manufacturers or the Brewers Retail Inc. to assist what types of products they would like to order, including categories and planning for future orders, only if all or any of these services are provided by the manufacturer for free.