This rule reflects the policy and intent of the commission to
maintain effective control over the sale and distribution of beer, an alcoholic
beverage, and to prevent abuses caused by the disorderly and unregulated sale
of beer. Mandatory price markups: prevent aggressive sales practices that
improperly stimulate purchase and consumption, thereby endangering the state's
efforts to promote responsible, and discourage intemperate, consumption of
alcoholic beverages; eliminate discriminatory sales practices that threaten the
survival of wholesale distributors and retail permit holders; preserve orderly
competition; ensure fair prices over the long term; assure adequate consumer
choice; and promote compliance with Ohio law and rule.
(A) This rule shall apply to all retail sales
of beer, not for consumption on the premises where sold and in sealed
containers, by A-1, A-1A, B-1, C-1, C-2X, D-1, D-2X or D-5 permit
holders authorized to sell beer.
(B) The minimum retail selling price of beer,
whether by the bottle, can, case, or keg, shall be determined in the following
manner:
(1) The minimum retail selling price
for retail sales made by a manufacturer shall be computed by adding a minimum
markup of not less than twenty-five percent to the wholesale invoice price for
sales by the manufacturer to retail permit holders for the same product and
brand in the same size container.
(2) The minimum retail selling price for
retail sales made by a wholesale distributor shall be computed by adding a
minimum markup of not less than twenty-five percent to the wholesale invoice
price for sales by the wholesale distributor to retail permit holders for the
same product and brand in the same size container.
(3) The minimum retail selling price for
retail sales made by a retail permit holder shall be computed by adding a
minimum markup of not less than twenty-five percent to the wholesale invoice
price to them for that product and brand in the same size container,
(4) Deposit charges for the bottle, can,
case, or keg shall not be included as part of the cost or included in any
computation for determining the minimum retail selling price with respect to
any class of liquor permit holders.
(5) The minimum retail selling price of beer
packaged by the manufacturer to be sold as an individual sealed container shall
be computed, to the nearest cent, by dividing the number of individual sealed
containers in an original shipping carton or case into the minimum retail
selling price, as computed herein, for that shipping carton or case.
(C) Except as otherwise provided
in this paragraph, beer packaged by the manufacturer to be sold as part of a
multiple-container package may not be repackaged or split apart by a retail
permit holder into smaller, multiple-container packages of the same brand.
(1) When not prohibited by the manufacturer,
individual containers of beer purchased as part of a multiple-container package
may be sold as individuals.
(2)
When not prohibited by the manufacturer, a retail permit holder may sell beer
in packages containing two or more brands, otherwise known as "mix and match,"
provided the products contained in the package are selected by the consumer and
the minimum markup requirement is met for each container in the "mix and match"
package.
(D)
The following sales and purchases at prices below the
minimum price prescribed by this rule shall not be deemed a violation of this
rule:
(1)
Sales
of beer made by the owner thereof for the purpose of going out of business or
in liquidating the business.
(2)
Sales of beer
made during a close-out sale. A sale of beer at less than the minimum retail
selling price as set forth in paragraph (B) of this rule may be made if an item
of beer is discontinued by the permit holder that has been in the inventory of
the permit holder for a period of at least three months from the date of the
last invoice for the purchase of such beer. The permit holder must keep a price
schedule and complete documentation of each close-out sale available for
inspection upon demand by the division for a minimum of twelve months following
the close-out sale. The permit holder may not repurchase the same item of beer
for a period of six months from the date of the close-out sale.
