Alcohol & Tobacco Tax & Trade Bureau accepted $225,000 from Doll Distributing LLC of Des Moines to settle charges the company violated the Tied House provisions of the Federal Alcohol Administration Act.
TTB alleged that in 2018, Doll negotiated a sponsorship of Drake University’s athletic programs as the official domestic beer supplier. As part of the deal, in exchange for $49,500, Doll was the official distributor of non-craft beer at the Knapp Center. TTB said the agreement excluded competitors and, therefore, violated the FAA Act’s tied house and exclusive outlet provisions. TTB also said Doll provided free mobile beer carts that were used to exclusively distribute Doll products, an act which TTB said also violated the tied house provisions.
TTB also said it accepted $225,000 to settle similar charges against Robert “Chuck” Fritz Inc. which in April 2017 negotiated an agreement to sponsor the Liberty Bank Amphitheater in Belleville, Ill for he 2017, 2018 and 2019 seasons. The agreement included the annual July 4 fireworks celebration. In exchange for $16,500 a yyear, Fritz was granted exclusive rights for malt beverage sales “at all locations and at all functions on Amphitheater property.” That effectively prevented other malt beverage distributors from supply malt beverages to the Amphitheater and was a violation of the FAA Act’s tied house and exclusive outlet prohibitions.