Chapter 125

125.33(8) (8) Exclusive sales by wholesaler. A wholesaler may not sell or offer to sell a brand of fermented malt beverages exclusively to one Class “A” licensee or to a group of Class “A” licensees affiliated through common ownership, management or control, unless the brand of fermented malt beverages is produced by a brewer that produces less than 300,000 barrels of fermented malt beverages in a calendar year or by a brewpub.

125.33(9) (9) Campuses and retailers to purchase from wholesalers.

125.33(9)(a) (a) Except as provided in ss. 125.29 (3m) (b) and (c), 125.295 (1) (g), and 125.30 (4), no campus or retail licensee or permittee may purchase or possess fermented malt beverages purchased from any person other than a wholesaler holding a permit under this chapter for the sale of fermented malt beverages.

125.33(9)(b) (b) Any person who violates par. (a), if the total volume of fermented malt beverages purchased or possessed by that person in one month is 4,320 fluid ounces or less, may be required to forfeit not more than $100. A person who purchases or possesses more than 4,320 fluid ounces of fermented malt beverages in one month in violation of par. (a) shall be fined not more than $10,000 or imprisoned for not more than 9 months or both.

125.33(9)(c) (c) Notwithstanding par. (b), a Class “B” licensee or permittee who purchases fermented malt beverages from a Class “A” licensee for resale or who possesses fermented malt beverages purchased from a Class “A” licensee for resale may be fined not more than $100.

125.33(10) (10) Compensation for termination of wholesaler distribution rights.

125.33(10)(a) (a) In this subsection:

125.33(10)(a)1. 1. “Brand” means any word, name, group of letters, symbols, or combination thereof, including the name of the brewer or brewpub if the brewer’s or brewpub’s name is also a significant part of the product name, adopted and used by a brewer or brewpub to identify a specific fermented malt beverage product and to distinguish that product from other fermented malt beverages produced by that brewer or brewpub or other brewers or brewpubs.

125.33(10)(a)2. 2. “Discontinued brand” means, with respect to a terminated wholesaler, any brand of fermented malt beverages for which a brewer, brewpub, brewer’s agent, brewpub’s agent, or holder of an out-of-state shipper’s permit has terminated, cancelled, or failed to renew an agreement, whether oral or written, with the wholesaler to supply that brand.

125.33(10)(a)3. 3. “Successor wholesaler” means any wholesaler who enters into an agreement, whether oral or written, to obtain a supply of a brand of fermented malt beverages that is a discontinued brand, or otherwise acquires the right to act as a wholesaler for a discontinued brand, from a brewer, brewpub, brewer’s agent, brewpub’s agent, or holder of an out-of-state shipper’s permit for purposes of selling the discontinued brand in a specifically defined territory, if the discontinued brand was sold by a terminated wholesaler in any portion of this same territory at a time immediately before the brand of fermented malt beverages became a discontinued brand.

125.33(10)(a)4. 4. “Terminated wholesaler” means a wholesaler with whom a brewer, brewpub, brewer’s agent, brewpub’s agent, or holder of an out-of-state shipper’s permit has terminated, cancelled, or failed to renew an agreement, whether oral or written, to supply a brand of fermented malt beverages to that wholesaler.

125.33(10)(b) (b) Except as provided in par. (c) and subject to pars. (d) and (e), a successor wholesaler shall compensate a terminated wholesaler for the fair market value of the terminated wholesaler’s distribution rights to any discontinued brand of fermented malt beverages assumed by the successor wholesaler for the same territory, less any amount paid to the terminated wholesaler by the brewer, brewpub, brewer’s agent, brewpub’s agent, or holder of an out-of-state shipper’s permit for the discontinued brand. If the terminated wholesaler’s distribution rights to any discontinued brand of fermented malt beverages are divided among 2 or more successor wholesalers, each successor wholesaler shall compensate the terminated wholesaler for the fair market value of the distribution rights to any discontinued brand of fermented malt beverages assumed by that successor wholesaler for the applicable part of the same territory, less any amount paid to the terminated wholesaler by the brewer, brewpub, brewer’s agent, brewpub’s agent, or holder of an out-of-state shipper’s permit for the discontinued brand. A terminated wholesaler may not receive under this paragraph total compensation from the successor wholesaler and brewer, brewpub, brewer’s agent, brewpub’s agent, or holder of an out-of-state shipper’s permit that exceeds the fair market value of the terminated wholesaler’s distribution rights specified under this paragraph.

125.33(10)(c) (c) A successor wholesaler is not required to compensate a terminated wholesaler under par. (b) if the terminated wholesaler’s agreement was terminated, cancelled, or not renewed for any of the following reasons:

125.33(10)(c)1. 1. The wholesaler or a principal of the wholesaler engaged in material fraudulent conduct or made substantial misrepresentations in its dealings with the brewer, brewpub, brewer’s agent, brewpub’s agent, or holder of an out-of-state shipper’s permit or with others regarding any brand of the brewer, brewpub, brewer’s agent, brewpub’s agent, or holder of an out-of-state shipper’s permit.

125.33(10)(c)2. 2. The wholesaler or a principal of the wholesaler was convicted of, or pleaded no contest to, a felony crime.

125.33(10)(c)3. 3. The wholesaler or a principal of the wholesaler knowingly distributed any brand of the brewer, brewpub, brewer’s agent, brewpub’s agent, or holder of an out-of-state shipper’s permit outside the territory authorized by the brewer, brewpub, brewer’s agent, brewpub’s agent, or holder of an out-of-state shipper’s permit for distribution of the brand.

125.33(10)(c)4. 4. The wholesaler or a principal of the wholesaler became insolvent or instituted bankruptcy proceedings, dissolved or liquidated the wholesaler’s business, or assigned or attempted to assign the assets of the wholesaler’s business for the benefit of creditors.

125.33(10)(d) (d) If a terminated wholesaler and a successor wholesaler agree to the fair market value of the terminated wholesaler’s distribution rights to any discontinued brand of fermented malt beverages assumed by the successor wholesaler for the same territory, the successor wholesaler shall pay the agreed upon sum to the terminated wholesaler within 30 days of the date on which the parties reach the agreement. If the parties cannot agree on the compensation due to the terminated wholesaler, upon written demand of either party, the parties shall submit their dispute for binding arbitration, subject to ch. 788, under the commercial arbitration rules of the American Arbitration Association if possible or, if not possible, by a nationally recognized arbitration association. The arbitration shall be conducted on an expedited basis to the extent an expedited proceeding is available. The arbitration shall commence within 90 days after the successor wholesaler obtains rights to receive a supply of a brand of fermented malt beverages, that is a discontinued brand of fermented malt beverages, of the terminated wholesaler, unless this time period is extended by mutual agreement of the parties or by the arbitrator. If the arbitrator awards compensation to the terminated wholesaler under this paragraph, the successor wholesaler shall pay the awarded compensation to the terminated wholesaler within 30 days of the date of the arbitrator’s decision. The terminated wholesaler and the successor wholesaler shall each pay an equal share of the costs of arbitration.

125.33(10)(e) (e) This subsection does not apply if the terminated wholesaler is a dealer, as defined in s. 135.02 (2), whose business relationship as to any discontinued brand constitutes a dealership, as defined in s. 135.02 (3) (a), as determined by a court of competent jurisdiction. Any arbitration proceeding under par. (d) shall be stayed pending this determination.

125.33(11) (11) Source of fermented malt beverages.

125.33(11)(a) (a) Subject to s. 125.34 (3), no wholesaler authorized to make retail sales under s. 125.28 (1) (e) may sell a brand of fermented malt beverages to a retail licensee unless the wholesaler has an agreement for general wholesale distribution of that brand of fermented malt beverages with the brewer, brewpub, brewer’s agent, brewpub’s agent, or holder of an out-of-state shipper’s permit supplying that brand.

125.33(11)(b) (b) If a wholesaler violates par. (a), any other wholesaler aggrieved by such violation or the brewer or brewpub may bring an action against such wholesaler in any court of competent jurisdiction for damages sustained by the aggrieved wholesaler or the brewer or brewpub as a consequence of the violation, together with the actual costs of the action. Notwithstanding s. 814.04 (1), a wholesaler or the brewer or brewpub who prevails in an action under this paragraph may recover reasonable actual attorney fees incurred in the action.

125.33(12) (12) Providing taste samples on retail premises. Notwithstanding s. 125.34 (6), with the consent of the Class “A” or Class “B” licensee, a brewer may provide, free of charge, on Class “A” or Class “B” premises, taste samples of fermented malt beverages to any person who has attained the legal drinking age for consumption on the premises between the hours of 11 a.m. and 7 p.m. The provision of taste samples under this subsection shall be subject to the same limitations that apply to taste samples provided by a Class “A” licensee under s. 125.25 (1). A brewer may provide taste samples of any fermented malt beverages that the brewer purchased from the retail licensee or that the brewer produced on premises covered by its brewer’s permit and brings to the retail premises, but the brewer may not leave at the retail premises any unused fermented malt beverages not purchased from the retail licensee. A brewer may provide taste samples under this subsection through an individual representing the brewer who is hired by the brewer and who is not employed by or an agent of a wholesaler. All provisions of this subsection that apply to a brewer apply equally to any individual representing a brewer.

125.33(13) (13) Wholesalers’ source of supply. No wholesaler may purchase fermented malt beverages for resale unless the wholesaler purchases them either from the primary source of supply for the brand of fermented malt beverages sought to be sold or from a wholesaler within this state that holds a permit issued under s. 125.28. No wholesaler may sell fermented malt beverages purchased by the wholesaler to any other licensee or permittee under this chapter if the fermented malt beverages have not been purchased by the wholesaler from the primary source of supply or from a wholesaler within the state holding a permit issued under s. 125.28.

125.33(14) (14) Sponsorship payments to state fair park vendors. It is not a violation of this chapter for a brewer, brewpub, out-of-state shipper, or wholesaler to make a sponsorship payment or provide any other item of value to a vendor that has been issued a permit by the state fair park board. If the vendor also holds a retail Class “B” license, the sponsorship exception is strictly applied only to the state fair park location.

125.33 History History: 1981 c. 79, 202; 1983 a. 26, 67, 68, 182, 192, 538; 1985 a. 15, 135; 1987 a. 308; 1989 a. 31, 253; 1991 a. 39; 1993 a. 112, 301; 1995 a. 320; 1997 a. 132, 166; 2001 a. 16, 38, 105; 2003 a. 303; 2005 a. 103; 2007 a. 9, 20; 2011 a. 32; 2021 a. 43; 2023 a. 73.

125.33 Cross-reference Cross-reference: See also s. Tax 7.23, Wis. adm. code.

125.33 Annotation The selective discount ban under s. 66.054 (8a) (i) [now sub. (6)] is constitutional. State v. Kay Distributing Co., 110 Wis. 2d 29, 327 N.W.2d 188 (Ct. App. 1982).

125.33 Annotation Sub. (1) (a) prohibits a person from having an interest in real estate leased to a Class “B” licensee while also being a director, officer, or shareholder of a brewery. 77 Atty. Gen. 76.

125.34 125.34 Distribution restrictions on wholesalers, brewers, brewpubs, and out-of-state shippers.

125.34(1) (1) In this section:

125.34(1)(a) (a) “Brand” means any word, name, group of letters, symbol, or combination thereof, including the name of the brewer, brewpub, or out-of-state shipper if the brewer’s, brewpub’s, or out-of-state shipper’s name is also a significant part of the product name, adopted and used by a brewer, brewpub, or out-of-state shipper to identify a specific fermented malt beverage product and to distinguish that product from other fermented malt beverages produced by that brewer, brewpub, or out-of-state shipper or other brewers, brewpubs, or out-of-state shippers.

125.34(1)(b) (b) “Brewer” means a permittee under s. 125.29.

125.34(1)(c) (c) “Designated sales territory” means the geographical area identified in a written agreement between a wholesaler and a brewer, brewpub, or out-of-state shipper under which the wholesaler is authorized to distribute one or more brands of fermented malt beverages supplied by the brewer, brewpub, or out-of-state shipper.

125.34(1)(d) (d) “Out-of-state shipper” means a permittee under s. 125.30.

125.34(1)(e) (e) “Retailer” means any person holding a Class “A” license or a Class “B” license or permit.

125.34(1)(f) (f) “Retail premises” means the premises described in a Class “A” license or a Class “B” license or permit.

125.34(1)(g) (g) “Wholesaler” means a permittee under s. 125.28.

125.34(2) (2) Except as provided in ss. 125.29 (3m) (b) and (c), 125.295 (1) (e) and (g), and 125.30 (4), no fermented malt beverages may be sold, transported, or delivered to a retailer unless, prior to such sale, transport, or delivery, the fermented malt beverages are first unloaded at, physically at rest at, and only then distributed from a wholesaler’s warehouse premises covered by both a wholesaler’s permit issued under s. 125.28 and an alcohol beverage warehouse permit issued under s. 125.19, which premises shall be in this state. This subsection does not apply to a wholesaler issued a wholesaler’s permit under s. 125.28 (1) (b) with respect to fermented malt beverages transported and delivered from a warehouse in an adjoining state unless the wholesaler’s warehouse in the adjoining state is located on premises in the adjoining state used for the manufacture of fermented malt beverages.

125.34(3) (3) 

125.34(3)(a) (a)

125.34(3)(a)1. 1. A wholesaler may not sell, transport, or deliver any brand of fermented malt beverages unless the wholesaler has entered into a written agreement with the brewer, brewpub, or out-of-state shipper supplying the brand that grants to the wholesaler distribution rights for the brand and identifies the designated sales territory for which such distribution rights are granted, including the precise geographical area comprising the designated sales territory.

125.34(3)(a)2. 2. A brewer, brewpub, or out-of-state shipper may not, in any agreement under this paragraph, grant to more than one wholesaler distribution rights for the same brand in the same designated sales territory or in any part of the same designated sales territory.

125.34(3)(b) (b) Within a wholesaler’s designated sales territory for any brand of fermented malt beverages, the wholesaler may not refuse to sell the brand of fermented malt beverages, or refuse to offer reasonable service related to the sale of the brand of fermented malt beverages, to any retailer.

125.34(4) (4) No wholesaler may sell, transport, or deliver, or cause to be sold, transported, or delivered, any brand of fermented malt beverages to any of the following:

125.34(4)(a) (a) Any retailer located outside the wholesaler’s designated sales territory for the brand. This paragraph does not apply if another wholesaler that has been granted distribution rights for the brand in the designated sales territory where the sale, transportation, or delivery occurs is unable to service this designated sales territory and the brewer, brewpub, or out-of-state shipper granting distribution rights has, notwithstanding sub. (3) (a), given consent for the sale, transportation, or delivery, which consent shall be limited to the time period that another wholesaler is unable to service this designated sales territory.

125.34(4)(b) (b) Any person, other than another wholesaler, that the wholesaler knows or should know will transport the product for resale in a designated sales territory for which another wholesaler has been granted distribution rights for the brand.

125.34(5) (5) Except as provided in ss. 125.29 (3m) (b) and (c), 125.295 (1) (e) and (g), and 125.30 (4), deliveries of fermented malt beverages to retailers may be made only by wholesalers and shall be made to retailers only at their retail premises. No retailer may transport fermented malt beverages from one retail premises to another retail premises for purposes of selling the fermented malt beverages at the other retail premises unless both retail premises are operated by a brewpub holding the retail licenses.

125.34(6) (6) Except as provided in ss. 125.29 (3), (3m) (b) and (c), and (7) and 125.30 (4), a brewer or out-of-state shipper may sell, transport, and deliver fermented malt beverages only to a wholesaler.

125.34 History History: 2005 a. 103, 115; 2007 a. 20; 2011 a. 32; 2013 a. 166; 2023 a. 73.

subch. III of ch. 125 SUBCHAPTER III

INTOXICATING LIQUOR

125.51 125.51 Retail licenses and permits.

125.51(1) (1) Municipal authority to issue.

125.51(1)(a) (a) Subject to sub. (2) (e) 2., every municipal governing body may grant and issue “Class A” and “Class B” licenses for retail sales of intoxicating liquor, and “Class C” licenses for retail sales of wine, from premises within the municipality to persons entitled to a license under this chapter as the issuing municipal governing body deems proper and may authorize an official or body of the municipality to issue temporary “Class B” licenses under sub. (10).

125.51(1)(b) (b) No member of the municipal governing body may hold a permit under s. 125.54 or, with respect to the issuance or denial of licenses under this section, do any act in violation of s. 19.59 (1).

125.51(1)(c) (c)

125.51(1)(c)1. 1. Except as provided in subd. 2., the municipal governing body, or the duly authorized committee of a city council, shall meet not later than May 15 annually, and be in session from day to day thereafter so long as may be necessary, for the purpose of acting upon license applications filed with it on or before April 15. Subject to sub. (2) (e) 2., the governing body or committee shall grant, issue, or deny each application not later than June 15 for the ensuing license year. Licenses may be granted for issuance at a later date when the applicant has complied with all requirements for the issuance of the license. The governing body or committee may accept and act upon any application filed at any other time. The governing body or committee may not deny an application for renewal of an existing license unless a statement of the reason for the denial is included in its clerk’s minutes.

125.51(1)(c)2. 2. The governing body of a 1st class city shall establish and publish notice of the dates on which it, or its duly authorized committee, will meet and act on license applications.

125.51(2) (2) Retail “Class A” license.

125.51(2)(a) (a) A “Class A” license authorizes the retail sale of intoxicating liquor for consumption off the premises where sold and in original packages and containers.

125.51(2)(am) (am) In addition to the authorization under par. (a), a “Class A” license authorizes the licensee to provide, free of charge, to customers and visitors who have attained the legal drinking age, taste samples of intoxicating liquor that are not in original packages or containers for consumption on the “Class A” premises. Taste samples may be provided under this paragraph only between the hours of 11 a.m. and 7 p.m. and may not exceed the quantities specified in s. 125.69 (9) (b). Any representative of a manufacturer, rectifier, winery, or out-of-state shipper issued a permit under s. 125.52, 125.53, or 125.58 may assist the “Class A” licensee in dispensing or serving the taste samples. No “Class A” licensee may provide as taste samples under this paragraph intoxicating liquor that the “Class A” licensee did not purchase from a wholesaler.

125.51(2)(b) (b) Except as provided under s. 125.69, “Class A” licenses may be issued to any person qualified under s. 125.04 (5), except a person acting as an agent for or in the employ of another.

125.51(2)(c) (c) “Class A” licenses shall particularly describe the premises for which issued and are not transferable, except as provided in s. 125.04 (12).

125.51(2)(d) (d)

125.51(2)(d)1. 1. The annual fee for a “Class A” license shall be determined by the municipal governing body and shall be the same for all “Class A” licenses, except that the minimum fee is $50 and the maximum fee is $500.

125.51(2)(d)2. 2. Notwithstanding subd. 1., there is no annual fee or initial issuance fee for a “Class A” license issued under par. (e) 2.

125.51(2)(e) (e)

125.51(2)(e)1. 1. In this paragraph, “cider” means any alcohol beverage that is obtained from the fermentation of the juice of apples or pears and that contains not less than 0.5 percent alcohol by volume and not more than 7.0 percent alcohol by volume. “Cider” includes flavored, sparkling, and carbonated cider.

125.51(2)(e)2. 2. Notwithstanding s. 125.68 (3), upon application, a municipal governing body shall grant and issue a “Class A” license to the applicant if all of the following apply:

125.51(2)(e)2.a. a. The application is made for a “Class A” license containing the condition that retail sales of intoxicating liquor are limited to cider.

125.51(2)(e)2.b. b. The applicant holds a Class “A” license issued under s. 125.25 for the same premises for which the “Class A” license application is made.

125.51(2)(e)3. 3. Notwithstanding pars. (a) and (am) and s. 125.69 (9), a person issued a “Class A” license under subd. 2. may not make retail sales, or provide taste samples, of any intoxicating liquor other than cider, and may not allow a winery, manufacturer, or rectifier to provide taste samples of any intoxicating liquor other than cider, on the “Class A” premises.

125.51(3) (3) Retail “Class B” license.

125.51(3)(a) (a) A “Class B” license authorizes the retail sale of intoxicating liquor by the glass and not in the original package or container for consumption on the premises where sold or for consumption off the premises if the licensee seals the container of intoxicating liquor with a tamper-evident seal before the intoxicating liquor is removed from the premises. In addition, wine may be sold in the original package or container in any quantity to be consumed off the premises where sold. This paragraph does not apply in municipalities in which the governing body elects to come under par. (b).

125.51(3)(b) (b) In all municipalities electing by ordinance to come under this paragraph, a retail “Class B” license authorizes the sale of intoxicating liquor to be consumed by the glass on the premises where sold or off the premises if the licensee seals the container of intoxicating liquor with a tamper-evident seal before the intoxicating liquor is removed from the premises. The “Class B” license also authorizes the sale of intoxicating liquor in the original package or container, in any quantity, to be consumed off the premises where sold.

125.51(3)(bg) (bg)

125.51(3)(bg)1. 1. In this paragraph, “bulk container” means a container exceeding 1.75 liters in volume.

125.51(3)(bg)2. 2. This paragraph applies only with respect to a “Class B” licensee exercising its authority under par. (a) or (b) to make retail sales of intoxicating liquor for consumption on the premises where sold or for consumption off the premises if the licensee seals the container of intoxicating liquor with a tamper-evident seal before the intoxicating liquor is removed from the premises.

125.51(3)(bg)3. 3. Notwithstanding s. 125.03 (2) and any rule promulgated thereunder, a “Class B” licensee may, on the licensed premises, prepare, store, and dispense mixed drinks containing intoxicating liquor, in advance of sale as described in subd. 2., if all of the following apply:

125.51(3)(bg)3.a. a. The mixed drink is provided to the consumer in a glass or other container not exceeding 72 ounces in volume.

125.51(3)(bg)3.b. b. The mixed drink has not been stored in a container for more than 48 hours prior to its sale to a customer.

125.51(3)(bg)3.c. c. If the mixed drink is stored in or dispensed from a bulk container, the bulk container does not exceed 5 gallons in volume and is labeled in compliance with the requirements established under subd. 4.

125.51(3)(bg)3.d. d. The licensee has not stored the mixed drink in or dispensed the mixed drink from a wine bottle and has ensured compliance with ss. 125.68 (8) (a) 2. and 3. and 125.69 (6), as well as compliance with any other applicable state or federal food safety regulation and any federal alcohol regulation.

125.51(3)(bg)4. 4. The division shall prescribe the form of the label to be used by “Class B” licensees under subd. 3. c., but the form shall require the licensee to disclose on the label all of the following information:

125.51(3)(bg)4.a. a. That the container holds a batch of premixed drinks and the date and time the batch was prepared.

125.51(3)(bg)4.b. b. Following the words “expiration date,” the date and time that is 48 hours after the date and time the batch was prepared.

125.51(3)(bg)4.c. c. The words “contains alcohol.”

125.51(3)(bg)4.d. d. The name of the person who prepared the batch of premixed drinks in the container.