"Selling Oklahomans the Finest Quality Beers"

Oklahoma Law: Wines, Spirits, and Malt Beverages

-        Alcoholic beverages are defined as those containing "in excess of 3.2% ABW or 4.0% ABV

o   Alcoholic beverages are regulated by the Oklahoma ABLE commission

-        Beers and malt beverages containing alcohol less than 3.2% alcohol by weight are considered to be "non- intoxicating beverages", and are regulated by the tax commission

o   These products are not allowed to be sold in retail

o   Relevant laws are enforced by local police and sheriff departments

-        Legal drinking age is 21 for alcoholic beverages & low-point beer

Full strength malt beverages

-        Historically, full strength beers and malt beverages that have become successful in Oklahoma have done so by taking advantage of Oklahoma’s four tier system

-        All full strength beers and malt beverages are imported into the state by the designated Non-Resident Seller (or "Broker") such as Quality Beverage Company.

-        The Non-Resident Seller sells the products he or she represents to licensed Class B Wholesalers.

-        The Non-Resident Seller is required to sell the products he or she represents to any and all licensed Class B Wholesalers who desire to buy them.

-        Class B Wholesalers then sells products to licensed customers (retail liquor stores and on–Premise accounts).

-        All Class B Wholesalers are non-franchised and may only sell products posted in the state of Oklahoma to licensed retail and on premise accounts within the state of Oklahoma.

Label requirements

-        To register a beer or malt beverage brand in Oklahoma, the following is required by state law:

o   Federal label approval

o   Two actual paper labels of each brand and/or package

o   Front and back labels, if applicable

o   Actual paper neck ring (if the product has a neck ring)

o   All full strength beer or malt beverage bottles must have an "ok+" or a small beer stein printed on the body label or neck ring

o   All full strength beer or malt beverage cans must have an ok+ or small beer stein engraved or stamped into the can top

Oklahoma Non-Resident Seller (“Broker”)

-        Brand franchise is legal only at the Broker level in Oklahoma

-        The Broker is the same as a vendor of record (vor)

-        The Broker is the representative for his suppliers in the state

-        Serves the same function as a franchised wholesaler

o   Broker purchases products from supplier

o   Broker sells products to wholesalers

o   Broker may only sell directly to wholesalers; may not sell directly to retail stores or on premise accounts

-        Once a supplier has assigned its products to a broker, the wholesalers may only buy those products from the assigned broker

-        Services provided by a broker:

o   Broker maintains an adequate working inventory of all suppliers products in Oklahoma

o   Promotes suppliers products in on premise and off premise accounts (sales)

o   Promotes suppliers products to wholesalers (sales)

o   Solicits orders from wholesalers and sends these orders to the supplier

o   Licensing

o   Compliance

o   Brand registration

o   Marketing

o   Price posting with the ABLE commission

§  Posted the 15th of each month

§  Must be posted 45 days before it is to take effect

Oklahoma Wholesalers

-        Currently there are 13 Oklahoma Class B Wholesalers

-        3 wholesalers are FOB Dock pick-up only

-        10 wholesalers deliver to customers

-        Important Oklahoma laws pertaining to wholesalers

o   Brand franchise is forbidden at the wholesale level

o   Wholesalers stock virtually all products available in Oklahoma

-        Wholesale license holders:

o   May not be incorporated; ownership must be either a sole proprietorship or a partnership

o   Must be a 10-year resident of the state of Oklahoma

o   Must have no felony convictions on record

o   May only have one wholesale operation in one location

o   May not hold any other type of alcohol beverage license

-        Oklahoma law prohibits wholesalers from:

o   Discriminating among retailers with respect to price or product

o   Offering quantity discounts, rebates, or "inducements" to retailers

o   Selling on credit to retailers

-        Price postings

o   State requires wholesalers to submit a price posting every 30 days (markup)

o   Once final postings are submitted, they are in effect for 30 days (one calendar month)

 Oklahoma retail market

 -        Retail store ownership:

o   May not be incorporated; ownership must be either a sole proprietorship or a partnership

o   Must be a 10-year resident of the state of Oklahoma

o   Must have no felony convictions on record

o   May only have one retail operation in one location

o   May not hold any other type of alcohol beverage license

-        Only alcoholic beverages in excess of 4.0% alcohol by volume may be sold

-        Wines, spirits, & strong beers

-        Operating hours are from 10:00 am -9:00 pm, Monday -Saturday

-        Must be closed on Sundays

-        Must be closed on all national holidays

-        Must pay for orders from wholesalers with cash or checks at time of delivery – no credit

 

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