§ 3-2-404 - Request to change wholesalers -- Contents of application. - Arkansas Statutes

3-2-404. Request to change wholesalers -- Contents of application.

Any distiller, manufacturer, importer, or producer desiring to change wholesalers with respect to any brand shall file with the Director of the Alcoholic Beverage Control Division a wholesaler change request containing the following information as applicable:

(1) The name of each brand involved;

(2) The case volume in Arkansas for each brand for the current year or portion thereof and the two (2) previous calendar years;

(3) The name of the wholesaler currently distributing such brand;

(4) The name of the proposed new wholesaler; and

(5) (A) A detailed explanation of the specific business reasons for the request to change wholesalers.

(B) Business reasons which may be considered by the director in determining good cause for authorizing a change of wholesalers will include:

(i) A wholesaler's bankruptcy or serious financial instability, including its consistent failure to pay its debts as they fall due or its failure to meet or maintain any objective standards of capitalization expressly agreed to between the wholesaler and the distiller, manufacturer, importer, or producer, provided such standards are determined by the director to be commercially reasonable;

(ii) A wholesaler's repeated violations of any provision of federal or state law or regulations, whether or not such violations resulted in official action;

(iii) A wholesaler's failure to maintain reasonable sales volume of the brand, taking into consideration such factors as the extent of the distiller's, manufacturer's, importer's, or producer's advertising and promotion of the particular brand, prevailing economic conditions affecting sales generally, or the extent of the wholesaler's efforts, or lack thereof, to promote a particular brand; and

(iv) Any other factors relevant to such proposed change and which aid the director in determining good cause.