This guidance clarifies rules for when liquor manufacturers, native distillers, distillerβs certificate of compliance holders, and brokers (industry members) offer quantity discounts for alcoholic liquor purchases by Class "E" retail alcohol license holders.
A quantity discount refers to refunds, rebates, price reductions, or other instruments (e.g., promotional checks) offered to Class "E" retail alcohol license holders for specific quantity purchases.
State and federal laws do not explicitly prohibit quantity discounts, but their legality depends on how they are offered in Iowa.
List items for Quantity Discounts for Alcoholic Liquor Purchases
Uniformity: Discounts must be uniformly available to all Class "E" retail alcohol license holders in the market area.
Proactive Communication: Discounts should be advertised through a medium ensuring all retailers are informed before the promotion ends.
Market Area: For industry members, the market area is the entire state of Iowa.
No Conditions or Restrictions: Industry members cannot impose conditions on participants, including:
Store placement of liquor
Pricing or advertising requirements
Product displays, demonstrations, giveaways, raffles, or contests
Program Management & Recordkeeping: Maintain clear documentation and records accessible for department inspection.
Alternative Promotions: Consider a Temporary Price Reduction (TPR), which reduces the per-case price for a limited period and can be uniformly offered via the Iowa Department of Revenue Alcoholic Beverages Portal.
Compliance & Enforcement
Violations of Iowa laws or rules on quantity discounts may result in administrative sanctions, fines, license suspension, or revocation. Industry members should review programs for compliance.
