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Clarification on Hand Sales

Dear Industry members,

The Liquor Enforcement Division has requested feedback from the industry concerning the practice of hand sales at retail liquor stores by May 23, 2014.  The term "hand sales" refers to when a supplier (as defined in Regulation 47-322) gives away free alcohol products to consumers during an on-site promotion at a retail liquor store.

The Division has received several requests to clarify this practice prior to May 23, 2014 due to increased marketing activities during the spring and upcoming summer events.

It is apparent no clear regulation or law exists that addresses this practice but hand sales have been a part of most supplier's marketing activities for a substantial amount of time.  The process has been for suppliers to purchase the items they want to give away from the retail liquor store.  In the initial request for feedback negative issues concerning this type of practice were presented by the Division.

In order to provide guidance to the industry, the Division will vet the issue thoroughly after receiving further input from the industry.  Until then, the Division is issuing this Temporary Guide On Hand Sales:
  1. A supplier may purchase alcohol from a retail liquor store for the purposes of conducting on-site promotions pursuant to Regulation 47-322(B) to include hand sales.  
  2. The product purchased must be of the supplier's brands and currently offered by the supplier.
  3. The supplier must keep records of all items purchased from a retail liquor store to be used as a free give away to consumers.  The records must include the date, retailer's name, and amount and name of products purchased.
After May 23, 2014, this temporary guide may or may not change.  The Division will address the issue of the practice of hand sales through the rule making process to be held later this year.

 
If you have any questions, please contact Patrick Maroney at patrick.maroney@state.co.us or 303-205-2927.