By MillerCoors
June 8, 2011
Purpose
The purpose of this doctrine is to define a clear and enduring set of shared beliefs, principles and commitments related to the existing structure and value of the three-tier system. By highlighting areas of mutual agreement and understanding, it is intended to set a firm foundation for renewed distributor confidence in the long-term integrity and investment potential of this enduring business system. While it is neither a legal document nor a legislative proposal, this doctrine serves as a useful guide and reference point for commercial and public policy discussions going forward. It is intended to rekindle the cooperative, collaborative relationships that have long been a hallmark of the three-tier system and to encourage increased focus on brewing, marketing and selling beer.
Beliefs
As partners in the U.S. beer business, MillerCoors and its independent network of local distributors believe that the three-tier system of brewing, distribution and retail sale continues to be the most powerful route-to-market for beer and offers significant commercial and societal value. By defining separate and distinct roles for each tier, this time-tested system delivers high levels of product quality, customer service and consumer choice as well as clear accountability for efficient tax collection and compliance with local, state and federal laws and regulations. As such, MillerCoors and its licensed distributors firmly believe that a vibrant three-tier system is critical to their mutual future success.
Principles
States lawfully exercise their express core powers under the 21st Amendment to the U.S. Constitution when establishing and overseeing the three-tier system. Due to the unquestioned legitimacy of state alcohol regulation as provided by the 21st Amendment and confirmed in the U.S. Supreme Court’s Granholm decision, the specific features that define the three-tier system vary widely on a state-by-state basis. MillerCoors and its licensed distributors agree that the following principles are critical to maintaining the future value and viability of the three-tier system:
1) Clear separation of ownership and/or majority control between brewers, distributors and retailers, as provided by state law;
2) Exclusive distribution rights granted to licensed distributors operating and located within defined territories;
3) Written agreements that, together with governing state laws, describe key aspects of the brewer- distributor relationship, such as performance expectations, terminations and brand assignments;
4) Appropriate federal and state authority to protect the interests of both national and local businesses to effectively operate across their respective territories;
5) Restrictions on direct shipping to retailers;
6) Restrictions on central warehousing by retailers;
7) Restrictions on retailer-to-retailer sales;
8) Restrictions on distributor sales across defined geographies;
9) Policies that recognize beer as the alcohol beverage of moderation and promote public safety.
Commitments
MillerCoors and the undersigned distributors will both aggressively defend, as well as not take actions or positions inconsistent with, these beliefs and principles. We also accordingly commit to cooperatively advocate for consistent and stable alcohol policies that ensure orderly and responsible markets for the production, distribution and sale of beer. Specifically, MillerCoors and its distributors commit to promote, protect and defend the integrity of the three-tier system by:
1) Supporting federal, state and local laws and regulations consistent with the above principles;
2) Defending such laws and regulations in litigation as necessary;
3) Providing financial support for such activities as are agreed necessary to achieve these ends.