In the event that the dispute concerns specialized legal areas – for example. B alleged violations of beer franchise legislation, unfair trading practices or other national laws – it is preferable to have access to an arbitrator with technical knowledge and experience in the beverage and/or distribution industry rather than a judge (and jury) who may not be familiar with the problems. Because of the obvious advantages that an annual extension confers on the brewer, this is an area of law heavily governed by national legislation on beer franchising. Many states limit a brewery`s ability to terminate a distribution agreement without there being a “good reason.”  This legal notice period may exceed an annual extension in the distribution contract, thus preventing the brewery from terminating the relationship after the expiry of the one-year term. Legal advisers who are familiar with the beer franchise laws of the relevant market should be consulted before terminating a distribution relationship, regardless of the duration of the contract. Thanks to the 21st amendment, we have 50 different laws related to the distribution of alcohol. Many of these laws are difficult to understand and a huge bore to read. Get a lawyer and get a reasonable interpretation of what your state laws are. In particular, do you know your rights and duties? The Brewer`s Association does a good job in summarizing the various state laws here. However, this summary only scratches the surface of what you need to know about the rules of engagement. Do you know the rules, use them to your advantage, and set them up in an agreement that works best for your brewery. Since then, after several different contractual agreements, the Boston Beer Company has brewed all of its beer in its own facilities, but many other companies followed the contract model and helped establish and consolidate the American Craft Brewing movement in the 1980s. Today, some breweries start as contract companies, but many others use contract brewery to supplement production when they no longer have capacity in their own brewing facilities.
The host brewery, on the other hand, is able to turn overcapacity into a constant source of income. Nevertheless, for many companies, arbitration is due to the private nature of the proceedings, the predictability of an arbitrator vis-à-vis a jury, and contractual restrictions on arbitration (i.e. Waiver of punitive damages, choice of law, jurisdiction, etc.), which may not be applicable in a legal action, remains a preferred method of resolving their disputes. Because of these benefits, most distribution agreements today continue to include binding arbitration rules that settle “all disputes” between the parties. There are a lot of challenges when it comes to self-distribution: rising cost of capital for trucks and storage areas, more people having to sell and deliver beer, and a new business model you need to learn. . . .