Tennessee Wholesalers Put the Ixnay on Cumulative Discounts and 10 Day Credit Rule

Our in box has blown up with e-mails about cumulative discounts and ending the 10 day credit rule for wine sold to retail liquor stores.  “Say it ain’t so” seems to be the prevalent sentiment in the industry.

Attached is a letter sent by legal counsel to the wholesalers, our former law partner Hank Hildebrand.  WSWT Opinion Letter

Cumulative discounts is a common practice in the retail liquor store business.  For example, a wholesaler sells a 100 case discount of George Dickel to a retailer, but the retailer pays for and receives the whisky in 20 case increments over 5 weeks.

No mas.

Retailers will still be able to receive 100 case discounts, but all of the hooch must be delivered and paid for at the same time.  According to the wholesalers, this applies to both wine and spirits.

And speaking of paid for, retailers are going to say goodbye to the 10 day credit rule for wine.  The wholesalers say that credit can still be extended for spirits and high gravity beer.

The timing for termination of cumulative discounts and the 10 day credit rule is up for discussion.  Once wholesaler has indicated that it will stop offering discounts and credit on May 1, which is roughly when the first WIGS letters of approval are expected to be issued by the ABC to food stores.

Kid Rock’s “Good Times, Cheap Wine” seems appropriate:

I like some good times, cheap wine, back beat rock and roll
I’m like fine wine, sunshine, baby I never get old
If you’re lookin’ for a hot mess, honey well here I am
Hey you can try to change me or love me just the way I am

Source: WIGS Law