{"data":{"id":"us-ok/okla.-stat.-tit.-37a-37a-3-108","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 37A, § 37A-3-108","heading":"Licensed distributor agreement required for licensed","body":"brewers or cider manufacturers - Rights to distribute low-point beer\n\n- Assignment to distribute beer brand - Brand extensions.\n\nA. The provisions of this section shall be in effect except as\n\notherwise provided in Article XXVIII-A of the Oklahoma Constitution.\n\nB. Subject to the provisions of subsection D of this section,\n\nevery licensed brewer or cider manufacturer authorized to sell its\n\nbeer or cider in this state shall:\n\n1. Enter into a distributor agreement with a licensed\n\ndistributor, as defined herein, to sell the designated brands,\n\nincluding brand extensions, of the brewer or cider manufacturer.\n\nThe agreement shall designate the sales territory of that licensed\n\ndistributor and the designated brands to be sold by the licensed\n\ndistributor. All such distributor agreements shall specifically\n\nauthorize this sale of the designated brands by a licensed\n\ndistributor within that sales territory. All such distributor\n\nagreements shall further provide that the licensed brewer or cider\n\nmanufacturer who desires to sell a brand extension of a low-point\n\nbeer in Oklahoma must assign the low-point beer brand extension to\n\nthe licensed distributor to whom the licensed brewer or cider\n\nmanufacturer granted the exclusive sales territory to the low-point\n\nbeer brand from which the brand extension resulted;\n\n2. Sell its registered and approved designated brands only to a\n\nlicensed distributor with whom that brewer or cider manufacturer has\n\na distributor agreement designating the sales territory of the\n\nlicensed distributor and the designated brands to be sold by the\n\nlicensed distributor;\n\n3. Authorize only one licensed distributor for each designated\n\nsales territory. Such licensed distributor shall be the only\n\nlicensed distributor for the designated brands of the authorizing\n\nbrewer or cider manufacturer within that designated sales territory;\n\nand\n\n4. Designate who is responsible for the distribution of its\n\ndesignated brands.\n\nC. Subject to the provisions of subsection D of this section,\n\nany and all licensed distributors possessing the rights to\n\ndistribute a low-point beer brand in a specific territory prior to\n\nthe introduction of that low-point beer's correlating beer brand\n\nextension in that specific territory shall retain the right to\n\ndistribute the low-point beer from which the brand extension\n\nresulted.\n\nD. 1. No later than August 2, 2018, a brewer shall assign the\n\nexclusive right to distribute a beer brand, including brand\n\nextensions thereof, to the low-point beer distributor who was, prior\n\nto October 1, 2018, assigned the exclusive distribution rights to\n\nthe low-point beer from which the brand extension arose without\n\ncharge or payment of compensation, unless the low-point beer\n\ndistributor is, on October 1, 2018, a brewer of beer or low-point\n\nbeer and has therefore been distributing low-point beer pursuant to\n\na license to so distribute, subject to the provisions of subsection\n\nE of this section. This subsection shall not apply to a small\n\nbrewer as defined in Section 1-103 of this title.\n\n2. With respect to brand extensions which arise after October\n\n1, 2018, the brewer or cider manufacturer shall assign the exclusive\n\nright to distribute the brand extension to the distributor who has\n\nbeen assigned the exclusive distribution rights to the beer or cider\n\nfrom which the brand extension arose, without charge or payment of\n\ncompensation.\n\n3. With respect to a brand of beer or cider which was, prior to\n\nApril 15, 2017, distributed in this state only as strong beer or\n\ncider pursuant to the Oklahoma Alcoholic Beverage Control Act then\n\nin effect, if a low-point version of the brand is introduced after\n\nApril 15, 2017, no later than August 2, 2018, the brewer or cider\n\nmanufacturer shall assign the exclusive rights to distribute the\n\nlow-point version of the brand to the distributor who was,\nor to\n\nApril 15, 2017, distributed in this state only as strong beer or\n\ncider pursuant to the Oklahoma Alcoholic Beverage Control Act then\n\nin effect, if a low-point version of the brand is introduced after\n\nApril 15, 2017, no later than August 2, 2018, the brewer or cider\n\nmanufacturer shall assign the exclusive rights to distribute the\n\nlow-point version of the brand to the distributor who was,\n\nimmediately prior to the introduction of the low-point version of\n\nthe brand, assigned the exclusive distribution rights to the strong\n\nversion of the brand without charge or payment of compensation.\n\n4. No later than August 2, 2018, with respect to dual strength\n\nbeer, the brewer thereof shall assign the exclusive right to\n\ndistribute the brands represented by the dual strength beer to\n\neither the low-point beer distributor or the nonresident seller who\n\nhad theretofore been assigned the exclusive distribution rights in\n\nthe territory to either version of the dual strength beer; provided,\n\nhowever, whichever party is selected by the brewer must compensate\n\nthe party that was not selected by the brewer for the loss of the\n\ndistribution rights with respect to that particular territory.\n\nWhichever party is selected shall obtain the requisite distributor\n\nlicense and shall be subject to the provisions of the Oklahoma\n\nAlcoholic Beverage Control Act.\n\n5. Compensation for the purposes of this provision shall be the\n\nfair market value of the party losing its distribution rights with\n\nrespect to the beer within that specific territory. Fair market\n\nvalue shall be determined as set forth in Section 3-111 of this\n\ntitle and shall take into account all aspects of brand valuation,\n\nincluding but not limited to:\n\na. the diminished value of the distribution of one\n\nversion of beer as a consequence of the subsequent\n\nintroduction of the other version,\n\nb. the expected annual sales and earnings of the\n\ndistributor agreement,\n\nc. the length of time the existing distributor held in\n\nthe distribution sales agreement, and\n\nd. any other relevant items of value, such as goodwill\n\nand going concern.\n\nE. If a brewer, whether directly or through an affiliate,\n\nmaintained one or more licenses to distribute low-point beer in this\n\nstate prior to October 1, 2018, then up to two of the brewer's low-\n\npoint beer distribution licenses shall automatically convert to beer\n\ndistribution licenses on October 1, 2018, and such brewer shall be\n\npermitted to continue to distribute beer in two territories within\n\nwhich it currently distributes without the appointment of a\n\ndistributor for such period of time as determined by the Legislature\n\nand consistent with the Constitution of the State of Oklahoma;\n\nprovided however, it shall not be permitted to distribute beer\n\noutside of the territory unless it enters into a distributor\n\nagreement with an independent licensed distributor as provided in\n\nparagraph 1 of subsection B of this section. This section shall not\n\napply to small brewers that have elected to self-distribute.\n\nF. If, on October 1, 2018, a licensed distributor possesses\n\ninventory of a brand that it is no longer authorized to distribute\n\nwithin this state, such inventory shall be sold to a licensed\n\ndistributor authorized to distribute such brand, at a price not to\n\nexceed the total of the actual purchase price of the selling\n\ndistributor plus the cost of inbound and outbound shipping to the\n\npurchasing distributor. The provisions of this paragraph shall not\n\napply to inventory purchased on or after September 15, 2018.","path":["OK Code","Title 37A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os37A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"8ce708438c0c8a459ac1a0ec0eb9d12edbe2aa17d5483cf61ddfadb637763811","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-37a-37a-3-107","next":"us-ok/okla.-stat.-tit.-37a-37a-3-109"},"notice":"GroundRules: Original legal text. Not legal advice."}