Maryland brewers and wholesalers say they have reached a deal that Brewers Association of Maryland is describing as “transformative,” giving brewers producing 20,000 barrels or less the right to terminate wholesaler contracts on 45 days notice without “good cause.” Currently they are required to give 180 days notice.
The agreement also would let brewers and wholesalers negotiate a “fair market value” buyout if no prior written agreement exists. If they can’t reach an accord, the matter would go to arbitration.
Another bill would increase the self-distribution act to 5,000 barrels a year from 3,000 for brewers with a Class 7 “Limited Beer Wholesaler License.” Class 7 breweries produce 22,500 barrels a year or less. The measure also would allow them to sell 3,000 barrels to consumers for on-premise consumption annually, and raise the production cap to 45,000 barrels.