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June 24, 2020

Limits on Merchandising Services Provided to Off-Premise Retailers

MPA063 — We know how important it is for you to keep up with the state’s alcohol regulations. TABC provides advisories to keep you informed.

This guidance outlines the limits on what a licensed distributor or wholesaler is legally allowed to do at certain businesses. For this advisory, the term “distributors” also includes wholesalers.

You might be interested if:

  • You’re an off-premise retailer, like a liquor or grocery store.
  • You’re a distributor.
  • You’re a wholesaler. 

The Basics

Certain work done by a distributor at retailer locations crosses a line and is considered something of value to the retailer. This violates tier restrictions. This advisory helps clarify that line to show what distributors are allowed to do and what’s off limits.

Here are a few general examples, but read the full advisory for TABC’s detailed guidance.

  • What’s allowed: A distributor performing certain merchandising services, like restocking, rotating and rearranging beverages.
  • What’s not allowed: A retailer forcing a distributor to perform merchandising services. A distributor breaking down packaging, cleaning a store, updating a retailer’s inventory and other activities listed in the advisory.

Please read the full advisory for TABC’s official guidance, which provides a detailed explanation about these limits on retail merchandising services provided to off-premise retailers.