OAR 845-010-0206: Private Labels

(1) A manufacturer or wholesaler may produce or sell wine or malt beverages under a private label under the following conditions: (a) The retailer pays all costs associated with the development, production and application of the private label; (b) Although both an Oregon and an out-of-state manufacturer may produce a private label product, the out-of-state manufacturer must sell the private label product to a retailer only through an independently owned and controlled wholesaler. ORS 471.220 and 471.223 allow Oregon manufacturers (breweries and wineries) to sell products directly to retailers; (c) The manufacturer or wholesaler does not develop a new malt beverage or wine product for the private label. The private label product must be the identical malt beverage or wine product the manufacturer or wholesaler sells under another label. The manufacturer or wholesaler must sell the private label product for at least the wholesale-listed price of the product sold under this other label. The purpose of this requirement is to prohibit manufacturers and wholesalers from offering private labels at a discount; (d) The manufacturer or wholesaler receives Commission approval of the private label before the manufacturer or wholesaler sells any of the private label product; (e) The manufacturer or wholesaler receives Commission approval of the private label agreement before the manufacturer or wholesaler sells any of the private label product. The private label agreement may not include a guaranteed quantity, a guaranteed price, credit sales, orders more than ten days in advance of delivery, product storage by the manufacturer or wholesaler or any other terms that violate financial assistance or tied-house statutes (ORS 471.394, 471.396, 471.398 and 471.400) or the rules adopted under these statutes; (f) The identical product sold under another label must be reasonably available to all the manufacturer or wholesaler's customers. The manufacturer or wholesaler may, however, make the private label product available only to a retailer who pays the costs associated with the private label; and (g) The manufacturer keeps a record of all private label sales for two years. The record must include: (A) The name of the retailer or wholesaler buying the product; (B) For each transaction, the quantity of product and the date of sale and delivery; (C) The price of the product and the total cost of each transaction; and (D) A list of the quantity of private label products sold to each retailer during each calendar year. (2) For private label products produced for a special event: (a) The manufacturer or wholesaler must meet all the conditions in section (1) of this rule; (b) The special event must be prominently featured on the private label; and (c) The retailer must receive all the private label product needed for the special event within ten days of the date the retailer placed the private label order. (3) As used in this rule: (a) "Label" means all information-bearing material attached to or a part of a wine or malt beverage package; (b) "Private Label" means a wine or malt beverage label that contains a retailer's trade name, trademark or other words or symbols identifiable with a retailer; (c) "Special event" means an event for which the Commission issues a temporary license pursuant to OAR 845-005-0415 or, for a regular licensee, an event that is not part of the licensees usual business operation.