The Texas Alcoholic Beverage Code is not a comedic document yet I laughed aloud after reading Subchapter C Section 102.51. It goes something like this:
SUBCHAPTER C. TERRITORIAL LIMITS ON SALE OF BEER
Sec. 102.51. SETTING OF TERRITORIAL LIMITS. (a) Each holder of a manufacturer’s or nonresident manufacturer’s license shall designate territorial limits in this state within which the brands of beer the licensee manufactures may be sold by general, local, or branch distributor’s licensees.
(b) Each holder of a general, local, or branch distributor’s license shall enter into a written agreement with each manufacturer from which the distributor purchases beer for distribution and sale in this state setting forth the sales territory within which each brand of beer purchased by that distributor may be distributed and sold. No holder of a general, local, or branch distributor’s license shall make any sales of any brand of beer outside the sales territory specified in the written agreement. No such agreement shall interfere with the rights of retailers to purchase beer as provided in Section 102.53. A manufacturer may not assign all or any part of the same sales territory to more than one distributor. A copy of the agreement and any amendments to it shall be filed with the administrator.
(c) This Act is promulgated pursuant to the authority of the state under the provisions of the Twenty-first Amendment to the United States Constitution to promote the public interest in the fair, efficient, and competitive distribution of beer, to increase competition in such areas, and to assure product quality control and accountability by allowing manufacturers to assign sales territories within this state.
Seriously? Allowing only exclusive distribution rights is intended to promote competition. This is the sort of legislation the distributor’s lobby fights for and what small brewers are up against. Increase competition indeed!