North Carolina General Statutes 18B-1116. Exclusive outlets prohibited
(a) Prohibitions. – It shall be unlawful for any manufacturer, bottler, or wholesaler of any alcoholic beverages, or for any officer, director, or affiliate thereof, either directly or indirectly to:
(1) Require that an alcoholic beverage retailer purchase any alcoholic beverages from that person to the full or partial exclusion of any other alcoholic beverages offered for sale by other persons in this State; or
Terms Used In North Carolina General Statutes 18B-1116
- Alcoholic beverage: means any beverage containing at least one-half of one percent (0. See North Carolina General Statutes 18B-101
- Commission: means the North Carolina Alcoholic Beverage Control Commission established under N. See North Carolina General Statutes 18B-101
- Person: means an individual, firm, partnership, association, corporation, limited liability company, other organization or group, or other combination of individuals acting as a unit. See North Carolina General Statutes 18B-101
- Premises: means a fixed permanent establishment, including all areas inside or outside the licensed establishment, where the permittee has control through a lease, deed, or other legal process. See North Carolina General Statutes 18B-101
- Sale: means any transfer, trade, exchange, or barter, in any manner or by any means, for consideration. See North Carolina General Statutes 18B-101
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3
(2) Have any direct or indirect financial interest in the business of any alcoholic beverage retailer in this State or in the premises where the business of any alcoholic beverage retailer in this State is conducted; or
(3) Lend or give to any alcoholic beverage retailer in this State or his employee or to the owner of the premises where the business of any alcoholic beverage retailer in this State is conducted, any money, service, equipment, furniture, fixtures or any other thing of value.
A brewery qualifying under subdivision (7) or (8) of N.C. Gen. Stat. § 18B-1104(a) is not subject to the provisions of this section concerning financial interests in, and lending or giving things of value to, a wholesaler or retailer with respect to the brewery’s transactions with the retail business on its premises or other retail locations allowed under N.C. Gen. Stat. § 18B-1104(a)(8). The brewery is subject to the provisions of this subsection, however, with respect to its transactions with all other wholesalers and retailers.
A distillery is not subject to the provisions of this section concerning financial interests in, and lending or giving things of value to, a retailer with respect to the distillery’s transactions with the retail business allowed on its premises under N.C. Gen. Stat. § 18B-1105(a)(4). The distillery is subject to the provisions of this subsection, however, with respect to its transactions with all other retailers.
(b) Exemptions. – The Commission may grant exemptions from the provisions of this section. Any exemption entered by the Commission in which any brewery or any officer, director, or affiliate of the brewery has a direct or indirect financial interest in the business of any retailer beyond the number of additional retail locations authorized by N.C. Gen. Stat. § 18B-1104 shall prohibit the brewery’s malt beverages from being sold to or purchased by that retailer. In determining whether to grant an exemption, the Commission shall consider the public welfare, the quantity and value of articles involved, established trade customs not contrary to the public interest, and the purposes of this section.
(c) As used in this section, the phrase “giving things of value” shall not include the dividing or removing of individual containers of alcohol from larger packages of alcohol or the delivery of such to the retail permittee. (1945, c. 708, s. 6; 1953, c. 1207, s. 1; 1971, c. 872, s. 1; 1981, c. 412, s. 2; c. 747, s. 63; 1993, c. 415, s. 25; 2005-380, s. 3; 2014-115, s. 28.2(c); 2017-87, ss. 11, 16(f); 2019-18, s. 3; 2019-182, s. 4(b).)