Introduction to Alcohol Marketing & Promotions — Part II: Promotions Targeting Consumers
This is the second article in a series discussing the regulation of alcohol marketing and promotions. The first article provided an overview of trade practices regulations and alcohol laws governing how suppliers can market to retailers. In this article, we will cover the regulation of alcohol promotions targeting consumers.
Part II: Promotions Targeting Consumers
The alcohol laws of most states address how suppliers and retailers may market and promote sales of alcohol to consumers. These are public safety laws that aim to prevent overconsumption as well as access by underage individuals.
Consumer Promotions by Retailers
Most states regulate the retail pricing and promotions of alcohol, though these laws may differ for beer, wine, and spirits. These laws apply to businesses with retail licenses, and may also apply to producers with licenses that include retail privileges. The rules may differ slightly depending upon your business’s exact licensure, and thus it is helpful to review these rules with your regulatory attorney. Some examples of how retail pricing and promotions may be limited include:
Below Cost Pricing – Some states may prohibit selling alcohol below cost, or may require a minimum markup.
Maximum Discounts – Alcohol laws may limit deep discount offers.
Coupons or Vouchers – Regulations may prohibit retailers from offering coupons or vouchers that are redeemable for a discount on a purchase of alcoholic beverages.
Membership or Loyalty Programs – Offering discounts or rewards to members of a club or loyalty program may be limited. In some states, such programs may be generally prohibited, or the limitations may be based on how the discounts or rewards are awarded.
Free Goods – Some states may prohibit the offering of free goods in connection with the sale of alcohol, or may limit the types of things that may be offered to consumers for free by alcohol retailers.
Depending on the state, the rules above may apply to all alcohol retailers, or there may be variation depending on whether the alcohol is sold for off-premises or on-premises consumption. Additionally, there are more types of pricing and promotions limitations that may apply to on-premises retailers:
Happy Hour Laws – Many states regulate on-premises pricing promotions that are selectively applied, such as drink specials only available during a certain time frame, or those only open to certain segments of consumers.
Multiple Drink Specials – Offering deals that are conditioned on the purchase of multiple drinks, or delivering multiple drinks to one person at the same time, is often prohibited.
Consumer Promotions by Suppliers
State alcohol laws also regulate consumer promotions offered by alcohol suppliers, such as producers or importers. The regulatory goals underpinning these laws include preventing excessive alcohol consumption, and also preventing undue influence by a supplier over a retailer, as discussed in depth in the first article in this series.
Supplier Coupons – Several states prohibit supplier-funded coupons offering instant discounts to consumers at the retail point-of-sale, in which the retailer redeems to coupon and is later reimbursed by the supplier.
Mail-In Rebates – Some states may prohibit an alcohol supplier from offering a mail-in rebate to consumers following the purchase of alcohol at a retailer. However, mail-in rebates are permissible in more states than instantly-redeemable supplier coupons because the redemption process is direct from the supplier to the consumer and does not involve the retailer.
Sweepstakes & Contests – Offering prizes to consumers is frequently regulated by state alcohol laws. Requiring an alcohol purchase to enter a sweepstakes or contest is generally prohibited.
Even in states where supplier promotions aimed at consumers are permissible, pre-approval from the state regulatory agency may be required. Suppliers should work with their regulatory counsel to set up internal systems to vet consumer promotions and track state pre-approval requests and responses.
September 24, 2026
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