Distributor sues Hop Valley | News | The Register-Guard | Eugene, Oregon.
Sounds like Oregon is similar to Georgia. In Georgia, a brewery (or any supplier of alcohol) must make what we refer to as the regulatory designation, in which the supplier designates a wholesaler as the exclusive distributor of the supplier’s products in a certain territory. This designation is made on a Georgia Department of Revenue form and filed with the department. Separately, a supplier and wholesaler can enter in a distribution agreement – the contractual designation -, with all kinds of various terms and conditions. As such, and similar to the case referenced in the article, things get interesting when a supplier wants to terminate its relationship with a wholesaler under the terms of the distribution agreement. There are ways to set up distribution agreements (depending on the degree of leverage) to make for a stronger case for the supplier, should it want to terminate under the contract. If this case doesn’t settle, it will be interesting to see how the court handles it.
Georgia Craft Beer Lawyer 