AB 695

Current law requires that wholesalers of fermented malt beverages (beer) enter

into written agreements with brewers and brewpubs supplying beer brands that

grant to the wholesalers distribution rights within exclusive sales territories. Under

current law, with certain exceptions, if a wholesaler's distribution rights to a beer

brand are terminated, the successor wholesaler assuming distribution rights of the

brand must compensate the terminated wholesaler for the fair market value of the

terminated distribution rights.

This bill specifies that "fair market value," for these purposes, does not include

any amount related to a brewer's or brewpub's sale of beer that it brews and sells at

retail within the terminated wholesaler's territory.