This guidance clarifies the rules regarding trade spending, which allows alcoholic beverage manufacturers, wholesalers, and brokers (industry members) to promote their brand by purchasing alcoholic beverages for consumers at retail locations licensed for on-premises consumption.
Requirements
Industry members may engage in trade spending under the following guidelines:
- Trade spending must be unannounced and unpublicized.
- Only one round of alcoholic or nonalcoholic beverages may be purchased for patrons.
- The industry member must pay the retailer no more than the ordinary retail price for the alcoholic or nonalcoholic beverage.
Record-Keeping
Industry members must maintain records in compliance with 701β1003.16(123).
Compliance and Enforcement
Failure to comply with Iowaβs trade spending regulations may result in administrative penalties, including civil fines, license suspension, or revocation. Industry members should review their trade spending practices to ensure compliance with state regulations.