2006 Code of Virginia § 4.1-215 - Limitation on manufacturers, bottlers and wholesalers; exemptions

4.1-215. Limitation on manufacturers, bottlers and wholesalers; exemptions.

A. Unless exempted pursuant to subsection B, no retail license for the saleof alcoholic beverages shall be granted to any (i) manufacturer, bottler orwholesaler of alcoholic beverages, whether licensed in the Commonwealth ornot; (ii) officer or director of any such manufacturer, bottler orwholesaler; (iii) partnership or corporation, where any partner orstockholder is an officer or director of any such manufacturer, bottler orwholesaler; (iv) corporation which is a subsidiary of a corporation whichowns or has interest in another subsidiary corporation which is amanufacturer, bottler or wholesaler of alcoholic beverages; or (v)manufacturer, bottler or wholesaler of alcoholic beverages who has afinancial interest in a corporation which has a retail license as a result ofa holding company, which owns or has an interest in such manufacturer,bottler or wholesaler of alcoholic beverages. Nor shall such licenses begranted in any instances where such manufacturer, bottler or wholesaler andsuch retailer are under common control, by stock ownership or otherwise.

Notwithstanding any other provision of this title, a manufacturer of maltbeverages or wine, whether licensed in the Commonwealth or not, may obtain abanquet license for a special event as provided in 4.1-209 upon applicationto the Board provided that such event is (i) at a place approved by the Boardand (ii) conducted for the purposes of featuring and educating the consumingpublic about malt beverage or wine products. Such manufacturer shall belimited to no more than four banquet licenses for such special events peryear. Where the event occurs on no more than three consecutive days, amanufacturer need only obtain one such license for the event.

B. This section shall not apply to:

1. Corporations operating dining cars, buffet cars, club cars or boats;

2. Brewery or winery licensees engaging in conduct authorized by subdivisionA 5 of 4.1-201;

3. Farm winery licensees engaging in conduct authorized by subdivision 5 of 4.1-207;

4. Manufacturers, bottlers or wholesalers of alcoholic beverages who do not(i) sell or otherwise furnish, directly or indirectly, alcoholic beverages orother merchandise to persons holding a retail license or banquet license asdescribed in subsection A and (ii) require, by agreement or otherwise, suchperson to exclude from sale at his establishment alcoholic beverages of othermanufacturers, bottlers or wholesalers; or

5. Wineries, farm wineries, or breweries engaging in conduct authorized by 4.1-112.1.

C. The General Assembly finds that it is necessary and proper to require aseparation between manufacturing interests, wholesale interests and retailinterests in the production and distribution of alcoholic beverages in orderto prevent suppliers from dominating local markets through verticalintegration and to prevent excessive sales of alcoholic beverages caused byoverly aggressive marketing techniques. The exceptions established by thissection to the general prohibition against tied interests shall be limited totheir express terms so as not to undermine the general prohibition and shalltherefore be construed accordingly.

(Code 1950, 4-32; 1978, c. 108; 1982, c. 66; 1984, c. 68, 4-32.1; 1993,c. 866; 1995, cc. 456, 630; 2003, cc. 1029, 1030; 2005, c. 784.)