OAR 845-010-0166: Territorial Agreements for the Wholesale Sale of Malt Beverages

The Commission interprets ORS 474.115 as follows: (1) Only one wholesaler may distribute a brand of malt beverage in a designated territory. (2) When an importer contracts with a wholesaler for exclusive distribution, the importer must give the Commission copies of both its agreement with the wholesaler and its agreement with the manufacturer that documents its authority to designate a wholesaler. The Commission will not allow the wholesaler to post prices without both agreements. (3) The Commission will accept a filing for a change in an exclusive territorial designation whenever the manufacturer executes and files a notice of change and an affidavit that the level of service will not be affected. This applies even when the existing agreement is between an importer and a wholesaler. When the Commission receives the notice, manufacturer’s affidavit, and territorial agreement, the new agreement automatically supercedes any previous agreements. (4) The manufacturer may base the affidavit on information received from the wholesaler. (5) "Level of service will not be affected" means that the new wholesaler will comply with all quality control standards and services as required in ORS 474.115, and will service all retail licensees within the designated territory who want to sell the product. (6) The Commission’s only responsibilities under ORS 474.115 are to accept and file notices, affidavits, and territorial agreements a manufacturer submits.