Iowa Senate Bill SF2299

Iowa 2023-2024 Regular Session

• Introduced: 2/12/24

Caption

A bill for an act relating to prohibited conduct of a brewer with regard to wholesaler agreements.(Formerly SSB 3076.)

Impact

If enacted, SF2299 would significantly impact the operations of both brewers and wholesalers by establishing more equitable terms in their agreements. By limiting the brewers' control over the wholesalers' business practices, the bill aims to foster a more competitive marketplace. This change could empower wholesalers in negotiating deals and reduce the barriers to selling products from various brewers, thereby enhancing competition and consumer choices in the beverage market.

Summary

Senate File 2299, introduced by the Committee on Commerce, addresses the relationship between brewers and wholesalers in the state of Iowa. The bill seeks to amend Section 123A.5 of the Iowa Code to prevent brewers from imposing unreasonable requirements on wholesalers regarding the sale and distribution of their products. Specifically, the bill prohibits brewers from requiring wholesalers to use specific electronic commerce platforms and from restricting wholesalers from selling products from other brewers.

Contention

One notable point of contention surrounding SF2299 involves concerns from some brewers regarding the potential loss of control over their brand distribution. As wholesalers gain more freedom to partner with multiple brewers and utilize various platforms, brewers fear that their ability to maintain consistent sales and brand presentation may be compromised. This introduces a dynamic where the interests of wholesalers and brewers might clash, possibly leading to disputes over market practices and brand management.