A supplier may amend, modify, terminate, cancel, discontinue or fail to renew an agreement with a wholesaler not less than thirty (30) days after written notice is given by the supplier as provided in § 57-5-508 if any of the following events occur:

(1) The supplier discontinues production or discontinues distribution in this state of a brand sold by the supplier to the wholesaler.

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Terms Used In Tennessee Code 57-5-506

  • Agreement: means any agreement between a wholesaler and a supplier, oral or written, whereby a wholesaler is granted the right to purchase and sell a brand or brands of beer with an alcoholic content of five percent (5%) by weight or less sold by a supplier. See Tennessee Code 57-5-502
  • Code: includes the Tennessee Code and all amendments and revisions to the code and all additions and supplements to the code. See Tennessee Code 1-3-105
  • Conviction: A judgement of guilt against a criminal defendant.
  • Designated member: means :
    (A) The spouse, child, grandchild, parent, brother or sister of a deceased individual who owned an interest in a wholesaler. See Tennessee Code 57-5-502
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Supplier: means a manufacturer or importer of beer. See Tennessee Code 57-5-502
  • United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Wholesaler: means a person or entity that sells beer to retailers, but does not include any manufacturer authorized to sell directly to retailers pursuant to §. See Tennessee Code 57-5-502
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(A) Nothing in this section shall prohibit a supplier from conducting test marketing of a new brand of beer or a brand of beer which is not currently being sold in this state; provided, that the supplier has notified the state in writing of its plans to conduct test marketing, which notice shall describe the market area in which the test shall be conducted, the name or names of the wholesaler or wholesalers who will be selling the beer, the name or names of the brand of beer being tested, and the period of time, not to exceed eighteen (18) months, during which the testing will take place.
(B) If a supplier discontinues production or distribution in this state of a brand pursuant to this section, then that supplier cannot reintroduce that brand into this state for a period of twelve (12) months after providing the written notice required by this section.
(C) Whenever a supplier discontinues production or distribution in this state of a brand, the supplier shall be required at the wholesaler’s request to purchase from the wholesaler any unsold inventory of the brand; or
(2) A stockholder or a partner of the wholesaler has been convicted of a felony under the United States Code or the laws of any state which would adversely affect the good will or interests of the wholesaler or supplier. If another stockholder or other stockholders, or partner or partners, or a designated member or members notifies the supplier in writing within thirty (30) days after the conviction of an intent to purchase the partnership interest or the stock of the offending stockholder or partner and purchases the interest or stock within a reasonable time after notice is given, then this subdivision (2) shall not apply. Any purchase of an interest or stock pursuant to this subdivision (2) will be subject to the requirements of supplier consent contained in § 57-5-504.
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