Alcohol & Tobacco Tax & Trade Bureau accepted $325,000 from Iowa Beverage Systems (IBEV), a wholesaler, to settle charges related to a sponsorship agreement at the 2019 Iowa State Fair.
One feature of the sponsorship agreement was that in exchange for $100,000, IBEV was guaranteed a certain number of malt beverage “tap handles” at the Iowa State Fair Grandstand. TTB said this violated the Federal Alcohol Administration Act’s tied house and exclusive outlet prohibitions.
IBEV also made payments to another retailer who operated bev/al retail locations on the Iowa State Fairgrounds in 2017, 2018 and 2019. “The payments were made, in part, to guarantee the retailer only purchased IBEV mail beverage products,” TTB said, adding that’s a violation of the FAA Act’s tied-house provisions.