Skip to content

Wholesale Laws for Arkansas

Produced in partnership with

Avalara Logo

 

Last Updated: July 2, 2018

Summary

The Alcoholic Beverage Control Division regulates, supervises and controls the manufacture, distribution and sale of all alcoholic beverages and the issuance of permits, and the regulation of alcohol beverages.  The Alcoholic Beverage Control Administration Division receives applications, processes those applications and, depending upon whether the qualifications are met as established by law and by regulation, the permit may be issued to the applicant.

Definitions:

“Vinous Liquor” means the fermented juices of grapes, berries, or other fruits and other mixture containing the fermented juices of grapes, berries, or other fruits, having an alcoholic content of more than five percent (5%) alcohol by weight.

“Light Wine” means the fermented juices of grapes, berries, or other fruits and other mixture containing the fermented juices of grapes, berries, or other fruits, having an alcoholic content between one-half of one percent (0.5%) and five percent (5%) alcohol by weight. Light Wine definition generally encompasses wine coolers.

Laws & Rules:

Supplier Licensing

Required: Yes

Name: Supplier’s Permit

Fee: $50

Expiration: June 30th of each year

Any out of state supplier of vinous liquor must apply for a Suppliers Permit and pay the initial application fee of $50 prior to selling to an Arkansas wholesaler. Along with the permit application, wineries must also submit a copy of their resident state permit and federal basic permit.

Resources:

Product Registration

Required: Yes

Fee: $15, plus $5 processing fee

Approval: 7 days

Expiration: June 30th of each year

Revision Required: COLA change

The holder of a supplier permit must register any brands and labels online through PRO and submit the following documents: “Manufacturer’s Request for Brand Registration or Change of Wholesaler,” a copy of each COLA, color copy of each label and authorization letter if not the owner. The supplier should fill out the top portion of the state form, and then send it to their Arkansas wholesaler to complete and submit to the state.

Resources:

Franchise "Monopoly Protection" Law

Franchise Law: Yes

Exclusive Territories: Required – Exclusive as to entire state

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

Arkansas does not allow more than one distributor per brand for wine.

Every supplier of spirituous and vinous beverages must complete the brand label registration process and designate one distributor to be the exclusive distributor for such brand or label within the state. Once approved the designated distributor may not be changed or terminated except for good cause.

The Director shall determine good cause after a hearing pursuant to the provisions set out in the Regulation.

Business reasons which may be considered in determining good cause for authorizing a change of wholesalers include:

  • A wholesaler’s bankruptcy or serious financial instability, including its consistent failure to pay its debts as they fall due or its failure to meet or maintain any objective standards of capitalization expressly agreed to between the wholesaler and the distiller, manufacturer, importer, or producer, provided such standards are determined by the director to be commercially reasonable;
  • A wholesaler’s repeated violations of any provision of federal or state law or regulations, whether or not such violations resulted in official action;
  • A wholesaler’s failure to maintain reasonable sales volume of the brand, taking into consideration such factors as the extent of the distiller’s, manufacturer’s, importer’s, or producer’s advertising and promotion of the particular brand, prevailing economic conditions affecting sales generally, or the extent of the wholesaler’s efforts, or lack thereof, to promote a particular brand;
  • Any other relevant factors.

Note that some of the rules applicable to the wholesale distribution of wine are not applicable to light wine (not more than 5% alcohol by weight).  The wholesale distribution rules for beer and malt products also apply to light wine.

Resources:

Supplier Reporting Requirements

Required: Yes

Name: Invoice Report

Due Date: Monthly, by the 15th

Every supplier must file a monthly shipment report with the Miscellaneous Tax Section of the Department of Finance and Administration.

Sales Representative Licensing

Available: No

A salesperson’s license is not required.

Self-Distribution

License: Allowed

License Fee: $100

Excise Tax: Required

Small farm wineries (wineries producing no more than 250,000 gallons annually) may obtain a “Small Farm Winery” license and sell directly to grocery stores in the State of Arkansas.

Resources:

Trade Practice Advisories

Arkansas Department of Finance and Administration
Alcohol Beverage Control
PO Box 2259
Little Rock, AR 72203
Phone: 501-682-8174
Alt. Phone: 501-682-1105
Fax: 501-682-3874

 

Recent Compliance Alerts

View all Compliance Alerts

 

This information is intended for winegrower licensees only. All information above is provided as an informational aid and is not legal advice. Data may be out-of-date or incomplete. Please consult a lawyer before taking any action.