NY Bill Addresses Franchise

Bill pushed by small brewers would give some relief to franchise law in NY state

The New York state Assembly has passed a bill that would allow a small brewer to drop its wholesaler, provided that the brewer’s products account for less than 3% of the wholesaler’s business. The brewer would still be required to pay fair market value for the wholesaler’s loss of distribution rights.

A similar bill was floated by small brewers in 2008, when then-Gov. David Paterson vetoed a nearly the bill.

The bill will now go to the Senate side for a vote. If passed, this would be one of the first bills passed by small brewers that successfully addresses the now-outdated franchise laws that exist in many states.