Texas House Bill HB3716

Texas 2013 - 83rd Regular

Caption

Relating to promotional items provided by manufacturers, wholesalers, and distributors of alcoholic beverages to retailers.

Impact

The passing of HB 3716 would have a significant impact on the marketing practices related to alcoholic beverages in Texas. By enabling wholesalers and manufacturers to provide promotional items directly to retailers, the bill could enhance advertising opportunities for brands striving to increase their visibility and market share. However, it also places certain financial restrictions, such as ensuring promotional items cannot be sold for less than the manufacturer's regular wholesale price and requiring payment in cash upon delivery, potentially affecting the business operations of smaller retailers.

Summary

House Bill 3716 seeks to amend the Texas Alcoholic Beverage Code by adding provisions for the promotion of alcoholic beverage brands through promotional items. It specifically allows manufacturers, wholesalers, and distributors (except for certain local distributors) to sell certain promotional items bearing the logo or brand name of alcoholic beverages directly to retailers. This includes items designed for consumer use both on and off the retailer's premises, and also allows for the provision of advertising signs aimed at promoting specific alcoholic products, with restrictions in place to prevent the use of retailer-specific branding on such promotional materials.

Contention

Some points of contention surrounding this bill may arise from concerns about how these provisions might influence market dynamics. For instance, while the bill promotes brand visibility and could support larger manufacturers, smaller, local companies may find it increasingly difficult to compete if they are unable to provide similar promotional incentives to retailers. Additionally, questions regarding the appropriateness of certain promotional practices in the alcohol industry might also generate debate, particularly around responsible marketing and consumption standards.