Delaware

The Office of the Delaware Alcoholic Beverage Control Commissioner (OABCC) grants and denies applications for liquor licenses, approves/disapproves requests for modifications to licensed establishments, performs inspections and grants renewals of liquor licenses.

Laws & Rules:

• Alcoholic Beverage Regulations
• Alcoholic Liquor Statutes

Required: Yes

Name: Out-of-State Supplier

Biennial Fee:

• $100 – for 200 cases or less per year
• $1000, plus a $1,000 processing fee – for more than 200 cases per year

Expiration: Dec. 31st

• odd-numbered year renewals -suppliers with a corporate name beginning with letters A – K,
• even-numbered year renewals – suppliers with a corporate name beginning with letters L – Z

A must winery must obtain an Out of State Supplier Permit prior to shipping products to Delaware distributors.

There are two permit options are available:

1. OSL-Limited allows shipments of 200 cases or less per calendar year; the fee is $100.

2. OSS -Unlimited allows shipments of over 201 cases or more per year and has a $1000 non-refundable processing fee. The OSS permit fee will be calculated upon approval. Applications must be notarized and include a certificate of good standing from the resident state of the supplier.

The term of both licenses is biennial (2 years).  Licenses must be renewed three months prior to the expiration date of the license.

Resources:

• Supplier Application Packet (Paper)
• Online Licensee System

Required: No

Any out-of-state supplier must provide the OABCC with a list of products intended to be shipped to a wholesaler and a copy of the distribution agreement with their Delaware wholesaler.

Franchise Law: Yes

Exclusive Territories: Required, with exceptions

Please review the law in its entirety and consult legal counsel prior to taking any action.

Contracts between suppliers and wholesalers do not need to be in writing, but if so, copies must be furnished to the Commission.  All contracts between suppliers and wholesalers shall continue in effect until voluntarily terminated or until any involuntary termination, transfer or substantial modification of the distribution rights granted by such contracts has been approved by the Commissioner.  In the event of voluntary termination of an agreement, the supplier is required to provide written notice of that fact to the Commissioner indicating that the affected wholesalers have both agreed to the termination and transfer.

Involuntary termination of a contract to distribute alcoholic beverages within Delaware is allowed for good cause, as defined in Rule 46, or if a supplier offers the wholesaler reasonable compensation. Good cause does not include NOT include instances where a supplier obtains the right to a brand or brands through a merger, stock purchase, assets purchase or by becoming the new regional or national supplier of the brand(s) in any other way. The supplier must provide written notice stating the reasons for the termination request 60 days before the proposed date of termination.  Additional filing requirements apply.

A licensed supplier may commence the “dual distribution” of such product(s) only under certain conditions.

Resources:

• Alcoholic Beverage Regulations, Rule 46(G)

Required: Yes

Name: Out Of State Supplier Report

Due Date: Monthly, by the 15th

The report must include: the supplier invoice number, the importer purchase order number, date shipment was made or sent, number of cases and total amount in gallons. Any credit invoices and/or memos issued for returns or transfers relating to the Delaware importer for that month must be attached to the report. If there were not any shipments made to Delaware, then the report must state “NO SHIPMENTS FOR THE MONTH OF”. If the supplier does not send the monthly report, a fine can be imposed by the Commissioner on that supplier. It is not required that sales invoices be sent with the supplier’s monthly report, however, sales invoices are to be provided on demand when requested by the Commissioner.

Resources:

• Out of State Supplier Report

Available: Yes

Fee: $50

Expiration: Dec. 31st every two years

A Representative license issued by the Commissioner is required to solicit orders for alcoholic liquors or transport samples thereof. Each license shall be valid, as long as the license holder remains sponsored or employed by the licensed manufacturer or importer. The license has a biennial fee of $50.

The employer or sponsor shall notify the Commissioner within two days after termination of the employment or sponsorship of any person holding a Representative license.

Resources:

• Sales Representative License Application

License: Not Allowed

Interstate self-distribution is not permitted.

• List of Wholesalers & Importers