Bill Text: VA SB174 | 2018 | Regular Session | Enrolled
Bill Title: Alcoholic beverage control; wine wholesaler, primary area of responsibility.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-03-05 - Governor: Acts of Assembly Chapter text (CHAP0169) [SB174 Detail]
Download: Virginia-2018-SB174-Enrolled.html
Be it enacted by the General Assembly of Virginia:
1. That §4.1-404 of the Code of Virginia is amended and reenacted as follows:
§4.1-404. Sales territory.
Each winery which enters into an agreement with a wine
wholesaler shall designate a sales territory as the primary area of
responsibility of that wholesaler which is applicable to the agreement. The
term "primary area of responsibility" shall not be construed as
restricting sales or sales efforts by a wine wholesaler exclusively to
retailers located within the designated sales territory, and any agreement to
the contrary shall be void. No winery shall enter into any agreement with
more than one wholesaler for the purpose of establishing more than one
agreement for its brands of wine in any territory. However, the existence of
more than one such agreement as a result of a sale of a winery as contemplated
by §4.1-405 shall not be prohibited. Notwithstanding any other provision in
this chapter, a winery may enter into agreements with more than one wholesaler
in a sales territory for new brands which are not clearly extensions of
existing brands. Territories served by a wine wholesaler on February 18, 1989,
shall be deemed designated sales territories within the meaning of this
section. Each winery shall notify the Board in writing of all designations of
sales territories, the identity of the wholesaler appointed to serve such territory
and a statement of any variations which exist in the designated territory in
regard to a particular brand. Redesignations shall be reported to the Board
within thirty 30 days.
2. That the provisions of this act shall not render valid the provision of any contract, written or oral, that was entered into prior to July 1, 2018, and that was void under the law in effect prior to July 1, 2018.
