1. A. No wholesale wine or beer licensee shall discriminate in price of alcoholic beverages between different retail purchasers, except where the difference in price charged by such wholesale licensee is due to:

   1. 1. Acceptance or rejection by a retail purchaser of terms or conditions affecting a price offer, including a quantity discount, as long as such terms or conditions are offered on an equal basis to all retailers;
   2. 2. A bona fide difference in the cost of sale or delivery; or

   3. 3. The wholesale licensee charging a lower price in good faith to meet an equally low price charged by a competing wholesale licensee on a brand and package of like grade and quality.

      Where such difference in price charged to any such retail purchaser does occur, the Virginia Alcoholic Beverage Control Authority (authority) may ask for and the wholesale licensee shall furnish written substantiation for the price difference.

2. B. Notwithstanding subsection A of this section, wholesale wine licensees may differentiate in the pricing between retail purchasers with on-premises and off-premises privileges. However, there shall be no discrimination in pricing among retail licensee purchasers with on-premises privileges and no discrimination in pricing among retail licensee purchasers with off-premises privileges, unless the conditions in subsection A of this section are present. Price differentiations shall be subject to the following provisions:

   1. 1. The wholesale price provided for differentiation to a retailer with on-premises and off-premises privileges shall be based on which privilege generates the majority of the business revenue.
   2. 2. Licensees with on-premises and off-premises privileges who choose to accept price differentiations from their wholesalers shall provide those wholesalers with a written statement declaring which privilege generates the majority of their business revenue.
   3. 3. Wholesalers will be responsible for maintaining those statements as well as indicating on the sales invoices which privilege the retailer has designated as their major revenue generator.
   4. 4. Upon request, wholesalers and retailers shall provide the authority with written substantiation for any price differentiation.
3. C. No person holding a license authorizing the sale of alcoholic beverages at retail shall knowingly induce or receive a discrimination in price prohibited by this section.

Statutory Authority

§ 4.1-111 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 30, Issue 6, eff. December 18, 2013; amended, Virginia Register Volume 33, Issue 8, eff. February 3, 2017; Volume 41, Issue 11, eff. February 12, 2025.