Ga. Comp. R. & Regs. r. 560-2-5-.09 — Registering Additional Brands and Brand Labels for Designation of Wholesalers and Sales Territories; Notice to Previously Designated Wholesaler(s)

(1) After a Manufacturer, Shipper, Importer, or Broker has made any registration pursuant to Rule 560-2-5-.08, such Manufacturer, Shipper, Importer, or Broker may register additional Brands or Brand Labels subject to the following terms: (a) Such Manufacturer, Shipper, Importer, or Broker shall, at least thirty (30) days in advance of offering such additional Brands or Brand Labels, submit the following through the Georgia Tax Center: 1. Except where not required by law, one U.S. Alcohol and Tobacco Tax and Trade Beverage approved Brand Label for each such Brand and Brand Label of Alcoholic Beverage to be shipped into, or within, Georgia; 2. If such Manufacturer, Shipper, Importer, or Broker is not listed as the applicant on the U.S. Alcohol and Tobacco Tax and Trade Beverage Certification/Exemption of Label/Bottle Approval for such Brand or Brand Label, submit a letter of authorization from such applicant granting such Manufacturer, Shipper, Importer, or Broker the authority to register such Brand or Brand Label in Georgia; 3. Designate, in the application for registration, sales territories for each Brand or Brand Label to be sold into, or within, Georgia; and 4. Name one Licensed Wholesaler in each territory who shall be the exclusive Wholesaler of such Brand or Brand Label within that territory. (b) Such designations of Wholesalers or Wholesalers' territories shall be initially approved by the Commissioner and shall not be changed nor initially disapproved except for cause, and the Commissioner shall determine cause after a hearing pursuant to these regulations. (c) Submit a request through the Georgia Tax Center at least thirty (30) days in advance of offering such Alcoholic Beverages for sale in Georgia. The registration of additional Brands or Brand Labels shall be limited to a maximum of ten (10) Brands and Brand Labels per submission, with unlimited submissions; (d) Any application for the registration of Brands or Brand Labels that tends to create a monopoly or lessen competition with respect to Alcoholic Beverages will not be approved. A proposed change or transfer that will place more than 25% of the case volume of all Distilled Spirits sold in Georgia under one Wholesaler or controlled group is presumed to be an attempt to create a monopoly and lessen competition. (2) If any Brands or Brand Labels submitted for registration pursuant to Rule 560-2-5-.08 or this Rule have been previously designated to a different Wholesaler or if such Brands or Brand Labels or any material portions thereof are the same as, or similar to, or such a modification, substitution, upgrade, or extension of, a Brand or Brand Label that has been previously designated to a different Wholesaler, the Manufacturer, Shipper, Importer, or Broker shall: (a) Notify the previously designated Wholesaler(s) by mailing, via U.S. certified mail, a copy of the request to register such Brands or Brand Labels that designate different Wholesalers or sales territories. (3) The previously designated Wholesaler(s) shall have thirty (30) days from receipt of the notification in paragraph (2) of this Rule above to file an objection with the Commissioner. If an objection is not filed with the Commissioner within the thirty (30) day period, the right to file such objection shall be waived. (a) Objections shall state the specific reasons which form the basis of the objection; (b) Any Brands or Brand Labels previously registered in Georgia and which have subsequently been withdrawn from distribution for a period of less than four (4) years shall be treated in the same manner as registering additional Brands or Brand Labels and are subject to the provisions in this Rule; (c) Any Brands or Brand Labels previously registered in Georgia which have subsequently been withdrawn from distribution for a period equal to or greater than four (4) years shall be deemed an initial application to register the Brands or Brand Labels pursuant to Rule 560-2-5-.08; (d) Any previously designated Wholesaler filing an objection after the Brand or Brand Label has been withdrawn for a period equal to or greater than four (4) years and for which an initial application has been deemed filed pursuant to subparagraph (3)(c) above, and Rule 560-2-5-.08, shall only have the right to a hearing if an objection is filed with the Commissioner within six (6) months of the date of registration and a determination is made by the Commissioner that a hearing is warranted; (e) The objection should include information showing that the last date the Manufacturer shipped Alcoholic Beverages to the Wholesaler was within the previous four (4) years; (f) Maintaining an inventory of the withdrawn Brand or Brand Label showing subsequent sales of that Brand or Brand Label to Retailers and/or Retail Consumption Dealers shall NOT constitute sufficient grounds for a determination that a hearing is warranted; (g) A Brand or Brand Label is considered withdrawn as of the date of the letter of withdrawal pursuant to Rule 560-2-5-.10(8), or if sooner, the date the license expires or is relinquished by the Manufacturer, Shipper, Importer, or Broker. (4) The Commissioner shall set a hearing and provide at least sixty (60) days notice of such hearing via U.S. certified mail to the previously designated Wholesaler(s), the proposed designated Wholesaler(s) for such Brands or Brand Labels, and the Manufacturer, Shipper, Importer or Broker, as provided in subparagraph (a) below: (a) The Commissioner shall set a hearing as provided in this Rule if any of the following occur: 1. Any objecting party notifies the Commissioner that the Manufacturer, Shipper, Importer, or Broker has failed to provide notice pursuant to paragraph (2) of this Rule above; 2. An objection is filed pursuant to paragraph (3) of this Rule above within the thirty (30) day period; 3. A Wholesaler notifies the Commissioner that it believes such Brands or Brand Labels or any material portions thereof are the same as, or similar to, or such modification, substitution, upgrade or extension of, a Brand or Brand Label which has already been registered; or 4. A motion is filed by the Commissioner. (b) If it is determined from the evidence adduced at the hearing that the Brand or Brand Label involved, including any material portion thereof, is the same as or similar to or is such a modification, substitution, upgrade or extension of, a Brand or Brand Label which has already been registered by the Manufacturer, Shipper, Importer or Broker (or a predecessor of such Brand or Brand Label) so as to render it unjust or inequitable (without cause being shown) to designate the Brand or Brand Label being so modified, substituted, upgraded or extended; then such request shall be denied or reversed, as the case may be; (c) Provided however, that nothing in this Regulation shall be construed to prevent the Manufacturer, Shipper, Importer or Broker from treating the matter as a desire to change Wholesalers, and from proceeding under Regulation 560-2-5-.10, either before or after such determination; (d) Any inventory of the released Brand may no longer be distributed by the Wholesaler as of the date of the letter of release as specified in Rule 560-2-5-.10(7). Cite as Ga. Comp. R. & Regs. R. 560-2-5-.09 Authority: O.C.G.A. §§ 3-2-2 , 3-4-152 , 3-5-31 , 3-6-22 , 48-2-12 . History. Original Rule entitled "Place of Sale or Delivery of Goods" adopted. F. and eff. June 30, 1965. Repealed: New Rule of same title adopted. F. Mar. 23, 1977; eff. Apr. 12, 1977. Repealed: New Rule of same title adopted. F. May 25, 1977; eff. June 14, 1977. Amended: F. Nov. 2, 1977; eff. Nov. 22, 1977. Repealed: F. May 5, 1982; eff. May 25, 1982. Amended: New Rule entitled "Farm Winery Retail Sales in Tasting Rooms" adopted. Sept. 19, 1983; eff. Oct. 9, 1983. Repealed: New Rule entitled "Registering Additional Brand Labels" adopted. F. Oct. 1, 2010; eff. Oct. 21, 2010. Amended: New title, "Registering Additional Brands and Brand Labels for Designation of Wholesalers and Sales Territories; Notice to Previously Designated Wholesaler(s)." F. May 31, 2023; eff. June 20, 2023. Amended: F. Oct. 5, 2023; eff. Oct. 25, 2023.