By: Jaci Flug, Esq. and Louis J. Terminello, Esq. Many third-party tech companies market themselves with the phrase “three-tier compliant” and little else to explain how they navigate our nation’s diverse and complex alcohol laws. Suppliers and retailers engaging with third parties are obligated to ask, “What does ‘three-tier compliant‘ mean?” Does it mean that a third party does not support ..read more

By: Louis J. Terminello, Esq. and Jaci Flug, Esq. Not New York businesses.  By now, we have all seen a small sign taped to the cash register at the liquor store, on the bottom of a restaurant menu, or printed across a bill at a bar saying in sum and substance, “THERE WILL BE A 4% SURCHARGE ON ALL PAYMENTS ..read more

By: Jaci Flug, Esq. and Louis J. Terminello, Esq. The three-tier system is designed to limit how suppliers can directly interact with consumers. Yet today, many suppliers can and do engage directly with consumers. Suppliers now collect personally identifiable information (PII) to facilitate sales thanks to the expansion of direct-to-consumer (DTC) laws. The growth of e-commerce and technology for on-premises ..read more

By: Louis J. Terminello, Esq. and Brad Berkman, Esq.  As musing as 2023 comes to an end and the Hospitality Group winds down its year, it’s no accident that hospitality, hospital, and hospice share the same etymology. An excess of one surely leads to the inevitability of the other. Regardless, in the face of the turmoil and tumult all around ..read more

By: Louis J. Terminello, Esq. and Jaci P. Flug, Esq. Licensees such as restaurants, liquor stores, grocery stores, and wineries are increasing their use of e-commerce ordering platforms to connect with new consumer markets. Most licensees engage with more than one platform. Licensees doing diligence on platforms must consult more than alcohol regulations when checking for compliance. Licensees must also ..read more

By: Louis J. Terminello, Esq. and Brad Berkman, Esq. Direct to consumer (“DTC”) sales of wine and other beverage alcohol from out-of-state shippers is presumably here to stay, at least from the perspective of retail shippers. The Granholm decisions, as most readers are familiar with, burst open the door to DTC sales by suppliers and in particular winemakers. Wineries, with and without distribution ..read more

By: Louis J. Terminello, Esq. and Brad Berkman, Esq. Here we are, reporting an interesting development in the arena of regulated products announced via court order earlier this month. Though we’re a bit late in reporting the news, industry insiders may find this latest blog article informative. For quite some time, the Food and Drug Administration (“FDA”) has been attempting ..read more

By: Louis J. Terminello, Esq. and Brad Berkman, Esq. Direct to consumer (“DTC”) sales by out-of-state vendors of alcoholic beverages are viewed as problematic, in many states, to the regulatory scheme and the interests of industry stakeholders. The three-tier system is the bedrock of alcohol beverage law, and this foundational principle is increasingly under attack by disruptors at various levels ..read more

There has been much ink spent, including recently in the New York Times, on the introduction of ready to drink (RTD) alcohol beverage brands by soft drink manufacturers, such as Coca-Cola and PepsiCo.  The drinks manufacturers are clearly capitalizing on the growth of the RTD and alcoholic seltzer category (which is exploding) in conjunction with the hard-earned brand equity that ..read more

By: Louis J. Terminello, Esq. By now the reader is likely aware of the Biden Administration’s Executive Order on promoting competition in the American marketplace which took aim at the wine, spirits and beer business and the three-tier system in particular. The report identified the largest distributors of wine, beer and spirits like Southern Glazer Wine and Spirts and Republic ..read more