Introduction to Alcohol Marketing & Promotions — Part I: Promotions Targeting Retailers
The permissibility of alcohol marketing and promotions is one of the most complicated legal issues your alcohol business will face. In today’s market, your sales & marketing team is under intense pressure to drive sales and connect with retailers and consumers. Depending upon the states that you are operating in, and the types of promotions you are interested in featuring, your business will need to navigate a complex patchwork of regulations. Working with an alcohol regulatory attorney to vet your promotions and educate your sales & marketing team is vital to ensure their creative ideas and promotional efforts won't get your business in trouble with regulators.
Alcohol marketing regulations vary depending upon what type of licenses your business holds, and which purchasers your promotions are targeting. This article addresses promotions aimed at alcohol retailers.
Part I: Promotions Targeting Retailers
Alcohol laws address how suppliers (producers, importers, and wholesalers) may market to alcohol retailers. These rules are unique to alcohol in the United States and often come as a surprise to those coming to the alcohol industry after working in marketing or sales for other consumer goods. Suppliers and retailers alike should be educated on Trade Practices Regulations, which limit how producers, importers, and wholesalers may interact and do business with retailers of alcohol. These rules aim to prevent “tied houses,” where retailers are “tied” to or controlled by a supplier of alcohol. Trade practices rules prevent tied houses by limiting how an alcohol supplier can provide things of value to a retailer, and these rules are the rationale underpinning many marketing limitations.
For example, many states prohibit Price Discrimination in sales to retailers, meaning that alcohol suppliers must sell products to all retailers at the same prices. Some states further require Price Posting to enforce this rule, meaning that price lists must be published at regular intervals and the prices adhered to for a certain duration. There are also alcohol-specific rules in many states that put guardrails on pricing variations such as Quantity Discounts and Depletion Allowances, as well as Channel Pricing, where different prices may be offered to on-premises retailers versus off-premises retailers.
Trade Practices rules prohibit alcohol suppliers from providing cash to alcohol retailers. Although alcohol laws often vary from state-to-state, federal and state regulations largely prohibit Slotting Fees, where a supplier pays a retailer for preferred shelf space. Additionally, several states prohibit suppliers from offering Supplier-Funded Coupons to consumers that are redeemable at retail locations because the redemption process involves the supplier passing money to the retailer.
Trade practices rules also govern what Point-of-Sale Advertising Items an alcohol supplier may provide to a retailer. Depending on the state, these rules may cover inside and outside signage, product displays, beer tap handles, menus, drink lists, napkins, and coasters. Trade practices rules typically also cover branded Consumer Advertising Specialty items that are given by suppliers to retailers for distribution to customers. These rules can be granular, often vary from state-to-state, and may even be different for beer, wine, and spirits within the same state.
Supplier tastings or trade shows where retailers are invited are also frequently regulated by trade practices rules. There are rules addressing the permissibility of providing Samples to a retailer, and whether Meals or Entertainment may be provided to retailers and their employees. For suppliers that sell more than one alcohol commodity, bear in mind that the rules governing beer, wine, and spirits may be different, and this will need to be taken into account when planning a tasting or trade show for retailers where multiple commodities will be poured.
Trade practices rules also come up frequently in the context of issues relating to Advertising and Events, which will be addressed in future articles in this series. A future article will also address Promotions Targeting Consumers. Often, a promotion may implicate regulatory issues from across this series, and it is good practice to discuss all the elements of a potential program with your regulatory attorney to ensure your business is on solid ground.
August 31, 2026
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