14B NCAC 15C .0710 ACCEPTED TRADE PRACTICES; SERVICES

Malt beverage, wine, and spirituous liquor industry members are authorized to provide the following services to retailers:

(1) Shelving and Pricing for Malt Beverage and Wine Wholesalers.

(a) Malt beverage and wine wholesalers assigned space in retail permittee outlets may price or re-price their stock as requested by the retail permittee.

(b) Malt beverage and wine wholesalers may rearrange and place their brand or brands in their assigned shelf space to rotate their stock and to keep their assigned space clean and neat.

(c) Malt beverage and wine wholesalers may rearrange or reset a retail permittee's alcoholic beverage shelf space, display area, or department pursuant to that retail permittee's plan and direction. Industry members shall not move or disturb brands sold by other industry members except as authorized in 14B NCAC 15C .0703.

(2) Shelf Management Plans; Notice Prior to Reset.

(a) An industry member may discuss with a retailer shelf-management concepts and programs and may provide, publish, and make available data on market sales and analysis.

(b) An industry member may provide and suggest shelf-management plans which are customized for a specific retail permittee or group of retail permittees. The retail permittee shall remain solely responsible for implementing a suggested shelf-management plan. If an industry member provides a suggested shelf-management plan to a retail permittee or group of retail permittees, it must provide a suggested plan to other retail permittees upon request. Shelf-management plans shall meet the following conditions:

(i) no retail permittee or person acting on the retail permittee's behalf shall implement a shelf-management plan unless the retail permittee sends notice of the plan to all wholesalers servicing the location who have requested notification from the retail permittee;

(ii) the retail permittee shall provide the notice to wholesalers required under this SubItem at least two weeks prior to implemention of the plan and the notice shall include the date and time of the contemplated plan implementation. If it is not feasible for the retail permittee to provide notice before the two-week period, the retail permittee shall provide such notice no less than 48 hours prior to implementation of the plan.

(iii) the retail permittee shall include the proposal in a notice if an industry member assists in the creation of a proposed plan; and

(iv) if a retail permittee develops a shelf-management plan without assistance from an industry member or makes adjustments to less than 15 percent of the current shelf-management plan, the retail permittee is not required to send notice to wholesalers required under this SubItem.

(d) For purposes of this Rule, a shelf-management plan includes shelf resets.

(e) For purposes of this Rule, a retail permittee or an industry member shall provide notice by verifiable electronic mail, certified mail, or other delivery service requiring written verification of delivery, and shall include a contact person's information for return correspondence.

(3) Participation in Retailer Association Activities. An industry member may participate in retailer association activities by:

(a) displaying product at association conventions or trade shows;

(b) renting display or booth space only if the rental fee is the same fee paid by all exhibitors;

(d) purchasing tickets to functions and paying registration fees only if the same fees are paid by all exhibitors; and

(e) making payments for advertisements in programs or brochures at association shows within the dollar limits established by Subpart D of 27 CFR Part 6, incorporated herein by reference and available for free at https://www.ecfr.gov/current/title-27/chapter-I/subchapter-A/part-6/subpart-D. Subsequent amendments and editions are incorporated by reference.

(4) Educational Seminars. An industry member may provide or sponsor seminars for retailers and their employees in the following areas:

(a) the proper use of equipment;

(b) the proper storage, handling, and service of alcoholic beverages;

(d) recognizing underage and intoxicated customers; and

(e) the history or aspects of a product's manufacturing process.

Seminars may be conducted at the premises of either the retailer or industry member. An industry member shall not pay the retailer's expenses in attending the seminar.

(5) Tastings. Industry members shall conduct tastings in compliance with 14B NCAC 15B, Section .0900.

(6) Labor for Displays. An industry member may provide personnel to construct a promotional product display on the premises of a retailer, and may move other products from the display area per 14B NCAC 15C .0703.

(7) Installations. The following items may be installed by an industry member at no charge to a retailer:

(a) point of sale advertising materials; and

(b) tapping accessories.

(8) Bar Spending. An industry member may visit the premises of an on-premise retail account for the purpose of promoting its brands so long as:

(a) the visit is unannounced and not advertised; and

(b) a patron who refuses the industry member's offer to consume a product is offered a comparable price-point beverage of the patron's choice, either alcoholic or non-alcoholic.

(9) Non-alcoholic Beverages. A malt beverage wholesaler who is also engaged in the business of selling non-alcoholic beverage products may engage in the accepted trade practices of the soft drink and snack food industries, so long as the sales and practices surrounding the non-alcoholic beverage merchandise are not used as an unlawful inducement to purchase malt beverages.

Note: Wine wholesalers selling non-alcoholic beverage merchandise are governed by the provisions of 27 CFR 6.101.

History Note: Authority G.S. 18B-100; 18B-203(b); 18B-207;

Eff. July 1, 1992;

Amended Eff. April 1, 2011;

Transferred and Recodified from 04 NCAC 02T .0712 Eff. August 1, 2015;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. August 19, 2017;

Readopted Eff. May 1, 2026.