2010 Tennessee Code
Title 57 - Intoxicating Liquors
Chapter 5 - Beer and Alcoholic Beverages Containing Less Than Five Percent Alcohol
Part 1 - General Provisions
57-5-101 - Traffic in alcoholic beverages of less than five percent (5%) permitted Brewers' and wholesalers' interests restricted.

57-5-101. Traffic in alcoholic beverages of less than five percent (5%) permitted Brewers' and wholesalers' interests restricted.

(a)  It is lawful in this state to transport, store, sell, distribute, possess, receive or manufacture beer, as defined in subsection (b), subject to the privilege taxes and regulations set out and provided for in this part, but no brewer or wholesaler of any such beverage or its agent or agents is permitted to make any loan or furnish any fixtures of any kind or have any interest, direct or indirect, in the business of any retailer of such beverages, or in the premises occupied by such retailer.

(b)  For purposes of this title, “beer” means beer, ale or other malt beverages, or any other beverages having an alcoholic content of not more than five percent (5%) by weight, except wine as defined in § 57-3-101; provided, however, that no more than forty-nine percent (49%) of the overall alcoholic content of such beverage may be derived from the addition of flavors and other nonbeverage ingredients containing alcohol.

(c)  (1)  Upon meeting necessary federal, state and local license requirements, notwithstanding the prohibition of subsection (a), a manufacturer:

          (A)  May operate as a retailer at the manufacturer's location or a site contiguous thereto for sales of not more than twenty-five thousand (25,000) barrels of beer annually for consumption on or off the premises under the provisions of this chapter as long as the requirements of this chapter concerning the licensing of such retail establishments are met; or

          (B)  May qualify for and hold a license under the provisions of chapter 4 of this title as a “restaurant” or as a hotel as defined under § 57-4-102(19)(F)(iii); provided, that the hotel licensee shall only sell beer manufactured pursuant to this section on the premises of the hotel.

     (2)  A manufacturer operating as a retailer pursuant to subdivision (c)(1)(A) may not sell its beer directly to retailers that are located in a county other than the county in which the manufacturer is located. Notwithstanding any provision of law to the contrary, any transfer or sale by a manufacturer operating as a retailer to an off-site retailer's location shall constitute a wholesale sale.

     (3)  The provisions of this subsection (c) shall apply only in counties having a population in excess of seventy-five thousand (75,000) according to the 1990 federal census or any subsequent federal census, and to a premier resort city, as defined in § 67-6-103(a)(3)(B)(i) and (a)(3)(B)(iii) that has approved by referendum the legal sale of alcoholic beverages for consumption on the premises as authorized by § 57-4-103.

[Acts 1933, ch. 69, § 1; 1935, ch. 170, § 2; C. Supp. 1950, § 1191.1; T.C.A. (orig. ed.), § 57-201; Acts 1983, ch. 229, § 7; 1990, ch. 906, § 1; 1991, ch. 214, §§ 1, 2; 1992, ch. 800, §§ 1, 2; 1993, ch. 227, § 1; 1993, ch. 297, § 1; 1995, ch. 395, §§ 1-6; 2004, ch. 956, §§ 1, 2; 2005, ch. 298, §§ 2, 3; 2009, ch. 290, §§ 1, 2.]