<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".19" citation="COMAR 14.23.01.19" title_num="14" subtitle_num="23" chapter_num="01" heading="Brand Size, Special Pack, Gift Packaging, and Labeling.">
  <paragraph num="A.">
    <text>Definitions.</text>
    <paragraph num="(1)">
      <text>“Depletion allowance” means an allowance offered by a supplier which is:</text>
      <paragraph num="(a)">
        <text>For a given brand and size;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>For a specific duration;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>For a given amount per case;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Based upon sales from existing wholesaler inventories; and</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Not conditioned upon purchases by a wholesaler.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>“Private label” means any label that is owned by a licensed retail dealer, or is bottled and labeled exclusively for sale to a licensed retail dealer.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>“Restricted or confined label” means any label of wine or distilled spirits, domestic or imported, other than private labels and those labels available for sale to licensed retail dealers generally.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>“Self-imports” means any alcoholic beverages which are purchased and imported by a licensed wholesaler when the alcoholic beverages are invoiced by the foreign supplier direct to the Maryland licensed wholesaler.</text>
    </paragraph>
    <paragraph num="(5)">
      <text>“Special pack” or “gift pack” means a carton or package which:</text>
      <paragraph num="(a)">
        <text>Contains:</text>
        <paragraph num="(i)">
          <text>More than one brand of wine or distilled spirits, or</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>One brand of wine or distilled spirits and one nonalcoholic item; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>Is intended for ultimate sale to the consumer.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(6)">
      <text>“Wholesaler” means a person who purchases from a nonresident dealer, or self-imports from a foreign source, any alcoholic beverages for sale to other licensed wholesalers or licensed retail dealers, and includes a county liquor control board and a county wholesale dispensary.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Special Pack or Gift Pack Requirements.</text>
    <paragraph num="(1)">
      <text>Size of Containers. Only one size of an alcoholic beverage container shall be represented within a special pack.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Containers in Carton. The total number of containers in a carton shall be in conformance with the provisions of §C of this regulation.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Nonalcoholic Items. Nonalcoholic items shall be restricted to those items which are physically packaged with the special pack and which are intended for ultimate purchase by the consumer. Signs, placards, devices, and graphic displays bearing advertising or other forms of advertising may not be included in special packs.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Consumer Oriented. A special pack shall be:</text>
      <paragraph num="(a)">
        <text>Entirely consumer oriented; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Configured and packaged to show that it is intended for ultimate sale to the consumer.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>Handling and Package Costs. The cost of special packaging materials and additional labor costs to assemble the special pack may be added to the price of the special pack if it is reported on a special pack price analysis.</text>
    </paragraph>
    <paragraph num="(6)">
      <text>Brand Identity. Each special pack shall be considered a distinct brand. Each special pack shall be assigned a unique UNIMERC brand code number as described in §B of this regulation.</text>
    </paragraph>
    <paragraph num="(7)">
      <text>Component Pricing. The cost of the special pack is not dependent on the price of any component alcoholic beverage also filed in regular case lots. However, special pack pricing may not be used to circumvent the prohibition on quantity discounts or be tantamount to providing free goods directly to the licensed retailer.</text>
    </paragraph>
    <paragraph num="(8)">
      <text>Approval Process.</text>
      <paragraph num="(a)">
        <text>Suppliers and wholesalers shall provide written communication to the Executive Director at least 14 days prior to its distribution, to include the type of alcoholic beverages, quantity amounts, size of containers, and any non-alcoholic items that are included in the special pack.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The Executive Director reserves the right to request more detailed information, including physical inspection or photograph, if a particular problem or question arises with regard to a specific filing.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Containers in Carton.</text>
    <paragraph num="(1)">
      <text>Packages are to be distributed as follows:</text>
      <paragraph num="(a)">
        <text>Multiples of 12;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Half quantities;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Four 5 liters;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Four 4 liters;</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Four 3 liters;</text>
      </paragraph>
      <paragraph num="(f)">
        <text>Six 3 liters;</text>
      </paragraph>
      <paragraph num="(g)">
        <text>Six 1¾ liters;</text>
      </paragraph>
      <paragraph num="(h)">
        <text>Eight or 6 1½ liter containers, but not more than one configuration per brand in any 12 consecutive months;</text>
      </paragraph>
      <paragraph num="(i)">
        <text>15, 12, or 9 1-liter containers, but not more than one configuration per brand in any 12 consecutive months;</text>
      </paragraph>
      <paragraph num="(j)">
        <text>15 or 12 750-milliliter containers, but not more than one configuration per brand in any 12 consecutive months; or</text>
      </paragraph>
      <paragraph num="(k)">
        <text>Any legal size packaged and sold as a single container.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>When containers hold less than 12.8 ounces or 378.7 milliliters, the quantity of containers may not be restricted to multiples of 12 but shall be in accordance with the prevailing practice in effect as to size and as to the number of containers in a carton.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>Labeling.</text>
    <paragraph num="(1)">
      <text>A label that is sold to more than one licensed retail dealer in Maryland may not qualify as a private label, and shall be made available for sale to licensed retail dealers generally.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Restricted or confined labels are prohibited for sale to licensed retail dealers.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Terms or conditions of sale, including delivery charges, C.O.D. charges, etc., shall be stated on the invoice covering the sale.</text>
    </paragraph>
  </paragraph>
</regulation>