News:

TTB accepted an offer in compromise from Crown Imports in the amount of $420,000. TTB alleges that Crown violated 27 USC 205(b) by entering into “agreements or understandings with retailers, directly or indirectly through (1) an ostensibly independent third-party, or (2) an affiliate of the retailer.” In particular, Crown allegedly paid a third-party resulting in a retailer receiving payment for advertising, display, and distribution services. TTB alleges that the payments, in part, secured tap handles for Crown malt beverages and amount to a slotting allowance.  

Senate Bill 1078, signed into law on March 25th, 2019, amended Idaho Code Section 23-1001, by defining “contractee brewer” and “contractor brewer” as well as adding a new Section 23-1057 to authorize contract brewing in certain instances. Newly amended Idaho Code Section 23-1001 defines “contractee brewer” as a brewer producing fewer than thirty thousand (30,000) barrels of beer in aggregate annually, including any beer manufactured outside the state of Idaho, that enters into a contractual relationship with another brewer to produce beer on the contractee’s behalf. “Contractor brewer” is defined as a brewer producing fewer than thirty thousand (30,000) barrels of beer in aggregate annually, including any beer manufactured outside the state of Idaho, that enters into a contractual relationship with a contractee brewer to produce beer for the contractee brewer on the contractor brewer’s licensed premises. The addition of Section 23-1057 allows for a contractee brewer to enter into a contractual relationship with a contractor brewer to contractually produce beer for the contractee brewer to the extent allowed by federal law. Both the contractee brewer and the contractor brewer must be separately licensed and separately owned. Beer brewed for a contractee brewer must count toward the contractee brewer’s annual production, but it will not count toward the contractor brewer’s annual production. The rise in popularity of contract production has afforded both aspiring and existing brewers more opportunities for production when, for a multitude of reasons, the contractee does not have the desired capacity or means to brew beer on…