(a) The wine test market program shall be subject to the following requirements:
- (1) A wine approved for inclusion in the wine test market program shall be assigned a required minimum gross profit based upon categorical and seasonal sales as determined by the commission;
- (2) A wine in the wine test market program shall be distributed to commission-designated state liquor stores for inclusion on those stores’ shelves for a period of 4 consecutive promotional months as listed in the commission’s promotional calendar, which the commission shall provide to all liquor and wine representatives and manufacturers;
- (3) The liquor and wine representative or manufacturer, as applicable, shall be responsible for assuring a sufficient supply and availability of the wine to meet expected sales during the 4-month period;
(4) Upon completion of the 4 month period, wine in the wine test market program shall be evaluated to determine whether it has met the required minimum gross profit as follows:
- a. A wine meeting or exceeding the required minimum gross profit shall be eligible for specialty distribution by the commission;
- b. A wine failing to meet the required minimum gross profit, but meeting at least 90 percent of the gross profit threshold, shall not be eligible for specialty distribution, but shall remain in designated state liquor stores and shall be subject to a recurring review to determine if the wine meets the required minimum gross profit threshold; and
- c. A wine failing to meet at least 90 percent of the required minimum gross profit in the 4 month period shall be delisted by the commission and any remaining inventory shall be discounted for sale until depleted as provided in Liq 302.08.
(b) The rollout program shall be subject to the following requirements:
- (1) A wine approved for inclusion in the rollout program, which includes enhanced marketing and promotional requirements as specified by the division, shall be assigned a required minimum gross profit based upon designated category and price point as determined by the commission;
- (2) A wine in the rollout program shall be distributed to commission-designated state liquor stores for a period of 2 consecutive promotional months as listed in the commission’s promotional calendar, which the commission shall provide to all liquor and wine representatives and manufacturers;
- (3) The liquor and wine representative or manufacturer, as applicable, shall be responsible for assuring a sufficient supply and availability of the wine to meet expected sales during the 2 month period; and
(4) Upon completion of the 2 month period, wine in the rollout program shall be evaluated to determine whether it has met the required minimum gross profit threshold, as follows:
- a. A wine meeting or exceeding the required minimum gross profit threshold shall be eligible for specialty distribution;
- b. A wine failing to meet the required minimum gross profit threshold, but meeting at least 90 percent of the required minimum gross profit threshold, shall not be eligible for specialty distribution, but shall remain in designated state liquor stores and shall be subject to a recurring review to determine if the wines meet the required minimum gross profit threshold; and
- c. A wine failing to meet at least 90 percent of the required minimum gross profit threshold in the 2 month period shall be delisted by the commission and any remaining inventory shall be discounted for sale until depleted as provided in Liq 302.08.
(c) The specialty status program shall be subject to the following requirements:
- (1) A wine included in the specialty status program shall be a wine listed by the commission but which has sales outside the level required to be at least a tertiary listing;
- (2) A wine in the specialty status program shall be subject to an evaluation for one calendar year from the date it is accepted into the program, with a review conducted semi-annually to verify whether the wine is on-track to meet the required minimum gross profit threshold; and
- (3) Upon completion of the evaluation period, a wine in the specialty status program failing to meet the required minimum gross profit threshold set by the commission shall be delisted by the commission and any remaining inventory shall be discounted for sale until depleted as provided in Liq 302.08.
(d) The allocated wines program shall be subject to the following requirements:
- (1) The allocated wines program shall apply to wines that are of a special, short-term, small-quantity, or other type of limited availability or limited stock;
- (2) Wines included in the allocated wines program shall not be subjected to a test market but will be distributed to specified state liquor stores as determined by the commission and sold until the limited stock is depleted; and
- (3) Wines included in the allocated wines program, and which have not been depleted after one calendar year shall be delisted by the commission and any remaining inventory shall be discounted for sale until depleted as provided in Liq 302.08.
(e) The one-time buy program and the power buy program shall be subject to the following requirements:
- (1) Wines in the one-time buy program and the power buy program shall not be required to go through a test market and shall not be subject to a recurring review, but shall otherwise comply with all listing requirements of these rules; and
- (2) Wines included in the one-time buy program and the power buy program shall be purchased and warehoused by the commission and sold until depleted, at a price, and on a schedule, determined by the commission.
Source. (See Revision Note #1 and Revision Note #2 at chapter heading for Liq 300) #14018, eff 7-3-24