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 HistoryHistory: 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-referenceCross-reference: See also s. Tax 7.23, Wis. adm. code.
125.33 AnnotationThe 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 AnnotationSub. (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.
125.34125.34Distribution 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.