Comments Off on Texas TABC drama

Let’s talk Texas TABC drama. As recently of last night, I am being told that TABC has begun to crack down on Randalls. (…/b…/other-accessories/Randall-3.htm). This is the actual code as written:

We are looking at sections 2, and 5 directly. ((2) furnish, give, or lend any money, service, or thing of value to a retailer), ((5) furnish, give, rent, lend, or sell to a retail dealer any equipment, fixtures, or
supplies to be used in selling or dispensing alcoholic beverages).

provided in Subsections (b), (d), and (g), no person who owns or has an interest in the business of a
distiller, brewer, rectifier, wholesaler, class B wholesaler, winery, or wine bottler, nor the agent, servant,
or employee of such a person, may:
(1) own or have a direct or indirect interest in the business, premises, equipment, or
fixtures of a retailer;
(2) furnish, give, or lend any money, service, or thing of value to a retailer;
(3) guarantee a financial obligation of a retailer;
(4) make or offer to enter an agreement, condition, or system which will in effect
amount to the shipment and delivery of alcoholic beverages on consignment;
(5) furnish, give, rent, lend, or sell to a retail dealer any equipment, fixtures, or
supplies to be used in selling or dispensing alcoholic beverages, except that alcoholic beverages may be
packaged in combination with other items if the package is designed to be delivered intact to the ultimate
consumer and the additional items have no value or benefit to the retailer other than that of having the
potential of attracting purchases and promoting sales;
(6) pay or make an allowance to a retailer for a special advertising or distribution
(7) allow an excessive discount to a retailer; or
(8) offer a prize, premium, gift, or similar inducement to a retailer or to the agent,
servant, or employee of a retailer.
(b) A permittee covered by Subsection (a) of this section may furnish to a retailer without
cost advertising specialties showing the name of the product advertised. The total value of all advertising
specialties for any one brand furnished to a retailer in any one calendar year may not exceed $78. Not
more than once a year, the administrator on the administrator’s own motion or on the motion of the
permittee may increase or decrease the total amount of advertising specialties permitted under this
subsection by not more than six percent based on the consumer price index and previous adjustments, if
any. For the purposes of this subsection, “consumer price index” means the annual average over a
calendar year of the consumer price index (all items, United States city average) published monthly by the
Bureau of Labor Statistics, United States Department of Labor, or its successor in function. Permittees
covered by Subsection (a) of this section may not pool or combine their dollar limitations to provide a
retailer with advertising specialties valued in excess of the maximum permitted under this subsection.
(c) No person who owns or has an interest in the business of a package store or wine only
package store, nor the agent, servant, or employee of the person, may allow an excessive discount on
(d) A permittee covered under Subsection (a) may offer prizes, premiums, or gifts to a
consumer. The use of rebates or coupons redeemable by the public for the purchase of alcoholic
beverages is prohibited. The holder of a winery permit may furnish to a retailer without cost recipes,
recipe books, book matches, cocktail napkins, or other advertising items showing the name of the winery
Texas Alcoholic Beverage Code (2015) 137
furnishing the items or the brand name of the product advertised if the individual cost of the items does
not exceed $1.
(e) A permittee covered under Subsection (a) may conduct a sweepstakes promotion. A
purchase or entry fee may not be required of any person to enter a sweepstakes event authorized under
this subsection. A person affiliated with the alcoholic beverage industry may not receive a prize from a
sweepstakes promotion.
(f) Notwithstanding Subsection (a) of this section, Section 108.05 of this code, or any other
provision of this code, a holder of a brewer’s permit, nonresident brewer’s permit, distiller’s and rectifier’s
permit, winery permit, nonresident seller’s permit, manufacturer’s license, or nonresident manufacturer’s
license may, in order to promote the brand name of the permittee’s or licensee’s products, contract with a
person licensed under the Texas Racing Act (Article 179e, Vernon’s Texas Civil Statutes) [Refer to
Appendix for this citation] for on-site advertising signs, for advertising in programs, and to supplement
purses for races even though the licensees under that Act or the owners or operators of the racing facilities
also hold a mixed beverage permit or other permit or license under this code. In addition, a permittee or
licensee described by this subsection may contract for off-site advertising promoting specific races. A part
of the cost of an advertisement or promotion authorized by this section may not be charged to or paid,
directly or indirectly, by the holder of a wholesale permit, general class B wholesaler’s permit, local class
B wholesaler’s permit, local distributor’s permit, general distributor’s license, or local distributor’s license,
except through the price paid by that holder for products purchased from the holder’s supplier.
(g) Subsection (a) does not prohibit a permittee covered under Subsection (a) from
prearranging or preannouncing a promotional activity otherwise permitted by this code with a retailer
about a promotional activity to be held on the retailer’s premises. Notwithstanding any other provision, a
permittee may:
(1) preannounce a promotion to a consumer; or
(2) preannounce the purchase of wine, distilled spirits, ale, or malt liquor to a consumer.

Now, what does all of this legalese mean? It means that as TABC lost their crowler case suit brought on by their unlawful actions at Cuvee Coffee, they have tried to backdoor their stance and have doubled down. (, (…/cuvee-coffee-bar-told-…/), (…/tabc-faces-setback-in-its-war-on…), etc.

What does this mean for the consumer? It means less variety of containers for beer to go, it means less creativity from brewers in terms of special events and beer infusions.

There are most certainly some work arounds for the Randall equipment issue. If you or your bar are interested in these, please contact me directly and I will share the blueprints with you.

But why Blake, why is TABC cracking down on Randalls? Well, merely because they are manufactured by a producer tier member. Randalls are collateral damage in the war against crowlers. TABC has also been conducting stings throughout Houston yesterday as well. I imagine that things are going to be relatively tense for a little while longer as they flex their enforcement muscles.

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