Kim Reynolds, Governor
Adam Gregg, Lt. Governor
Stephen Larson, Administrator

Looking Into the Glass

Can a retailer receive disposable glassware free-of-charge from a wholesaler? What about durable glassware? Does it make a difference if the retailer is an on-premises licensee or an off-premises licensee? These are all questions that may seem trivial, but transactions involving the selling and giving of disposable and durable glassware to retailers by industry members are controlled by federal and state tied-house regulations. Tied-house regulations are laws prohibiting industry members from providing “things of value” to retailers of alcoholic beverages. Use the following to serve as a guide on making purchases of glassware from an industry member:

Who is considered an industry member?

Industry member means an alcoholic beverages manufacturer, including a distiller, vintner or brewer, bottler, importer, wholesaler, jobber, representative, broker, agent, officer, director, shareholder, partner or employee of each of the above.

What is legal for an on-premises licensee?

One-Time Usage/Disposable Cups

An on-premises licensee may purchase one-time usage cups made of paper, paper laminate, or plastic from a beer, wine, or distilled spirits industry member. The beer, wine, or distilled spirits industry member is required to sell, not give, the one-time usage cups to an on-premises licensee. Iowa law requires the beer, wine, or distilled spirits industry member to charge an on-premises licensee an amount equal to or greater than the cost of the one-time usage cups.

Durable Glassware

An on-premises licensee may purchase durable glassware from a distilled spirits industry member*. The glassware must bear advertising matter which identifies the distilled spirits industry member or their product. The distilled spirits industry member is required to charge the on-premises licensee an amount equal to or greater than the cost of the glassware.

*Note: A distilled spirits industry member who is also a beer and/or wine industry member is prohibited from selling durable glassware to an on-premises licensee.

What is legal for an off-premises licensee?

One-Time Usage/Disposable Cups

An off-premises licensee may purchase one-time usage cups made of paper, paper laminate, or plastic from a beer, wine, or distilled spirits industry member. The beer, wine, or distilled spirits industry member is required to sell, not give, the one-time usage cups to an off-premises licensee. Iowa law requires the beer, wine, or distilled spirits industry member to charge an off-premises licensee an amount equal to or greater than the cost of the one-time usage cups.

Durable Glassware

An off-premises licensee may purchase durable glassware from a distilled spirits industry member. The glassware must bear advertising matter which identifies the distilled spirits industry member or their product. The distilled spirits industry member is required to charge an off-premises licensee an amount equal to or greater than the cost of the glassware.

An off-premises licensee may also purchase commemorative glassware from a beer or wine industry member for resale to consumers. The commemorative glassware must bear substantial advertising matter identifying the beer/wine industry member or the beer/wine industry member’s product. The beer or wine industry member is required to charge an off-premises licensee an amount equal to or greater than the cost of the commemorative glassware.

Record Keeping

Proper record keeping must be kept by the beer, wine, or distilled spirits industry member including the name and address of the on- or off-premises licensee receiving the item, the date sold, the item sold, the industry member’s laid-in cost of the item sold and the charges to the on- or off-premises licensee for any item.

These regulations may seem trivial, but they are designed to prevent an industry member from having an undue influence over a retailer. If you have questions contact the Division by calling 515.281.7414.

Printed from the website on July 06, 2020 at 8:18am.