Md. Code Regs. 14.23.01.19

Current through Register Vol. 51, No. 24, December 2, 2024

Section 14.23.01.19 - Brand Size, Special Pack, Gift Packaging, and Labeling

A. Definitions.

(1) "Depletion allowance" means an allowance offered by a supplier which is:

(a) For a given brand and size;

(b) For a specific duration;

(c) For a given amount per case;

(d) Based upon sales from existing wholesaler inventories; and

(e) Not conditioned upon purchases by a wholesaler.

(2) "Private label" means any label that is owned by a licensed retail dealer, or is bottled and labeled exclusively for sale to a licensed retail dealer.

(3) "Restricted or confined label" means any label of wine or distilled spirits, domestic or imported, other than private labels and those labels available for sale to licensed retail dealers generally.

(4) "Self-imports" means any alcoholic beverages which are purchased and imported by a licensed wholesaler when the alcoholic beverages are invoiced by the foreign supplier direct to the Maryland licensed wholesaler.

(5) "Special pack" or "gift pack" means a carton or package which:

(a) Contains:

(i) More than one brand of wine or distilled spirits, or

(ii) One brand of wine or distilled spirits and one nonalcoholic item; and

(b) Is intended for ultimate sale to the consumer.

(6) "Wholesaler" means a person who purchases from a nonresident dealer, or self-imports from a foreign source, any alcoholic beverages for sale to other licensed wholesalers or licensed retail dealers, and includes a county liquor control board and a county wholesale dispensary.

B. Special Pack or Gift Pack Requirements.

(1) Size of Containers. Only one size of an alcoholic beverage container shall be represented within a special pack.

(2) Containers in Carton. The total number of containers in a carton shall be in conformance with the provisions of §C of this regulation.

(3) Nonalcoholic Items. Nonalcoholic items shall be restricted to those items which are physically packaged with the special pack and which are intended for ultimate purchase by the consumer. Signs, placards, devices, and graphic displays bearing advertising or other forms of advertising may not be included in special packs.

(4) Consumer Oriented. A special pack shall be:

(a) Entirely consumer oriented; and

(b) Configured and packaged to show that it is intended for ultimate sale to the consumer.

(5) Handling and Package Costs. The cost of special packaging materials and additional labor costs to assemble the special pack may be added to the price of the special pack if it is reported on a special pack price analysis.

(6) Brand Identity. Each special pack shall be considered a distinct brand.

(7) Component Pricing. The cost of the special pack is not dependent on the price of any component alcoholic beverage also sold in regular case lots. However, special pack pricing may not be used to provide free goods or hidden discounts directly to the licensed retailer.

(8) Approval Process.

(a) Suppliers and wholesalers shall provide written communication to the Executive Director at least 14 days prior to its distribution, to include the type of alcoholic beverages, quantity amounts, size of containers, and any non-alcoholic items that are included in the special pack.

(b) The Executive Director reserves the right to request more detailed information, including physical inspection or photograph, if a particular problem or question arises with regard to a specific filing.

(9) Multipacks. Special packs which are only available as multipacks, without nonalcoholic items, are authorized if the component items are not available in regular case lots.

C. Containers in Carton.

(1) Packages are to be distributed as follows:

(a) Multiples of 12;

(b) Half quantities;

(c) Four 5 liters;

(d) Four 4 liters;

(e) Four 3 liters;

(f) Six 3 liters;

(g) Six 13/4 liters;

(h) Eight or 6 11/2 liter containers, but not more than one configuration per brand in any 12 consecutive months;

(i) 15, 12, or 9 1-liter containers, but not more than one configuration per brand in any 12 consecutive months;

(j) 15 or 12 750-milliliter containers, but not more than one configuration per brand in any 12 consecutive months; or

(k) Any legal size packaged and sold as a single container.

(2) When containers hold less than 12.8 ounces or 378.7 milliliters, the quantity of containers may not be restricted to multiples of 12 but shall be in accordance with the prevailing practice in effect as to size and as to the number of containers in a carton.

D. Labeling.

(1) A label that is sold to more than one licensed retail dealer in Maryland may not qualify as a private label, and shall be made available for sale to licensed retail dealers generally.

(2) Restricted or confined labels are prohibited for sale to licensed retail dealers.

(3) Terms or conditions of sale, including delivery charges, C.O.D. charges, etc., shall be stated on the invoice covering the sale.

Md. Code Regs. 14.23.01.19

Regulation .19 amended and recodified from 03.02.01.05 effective 49:26 Md. R. 1080, eff. 12/26/2022