SLA AND SPLIT CASE FEES

The NYC Hospitality Alliance’s counsel Robert Bookman from Pesetsky and Bookman testified at the State Liquor Authority on behalf of proposed rules which would restrict the amount of money distributors can charge restaurants and bars for ordering less than a case of product, commonly known as a split case fee. Increasingly, businesses are ordering less than a full case, especially of expensive products and they have been charged as much as $3 a bottle or $36 extra a case.

The proposed SLA regulation will limit those fees to no more than $7.39 per case of 12 or .62 cents per bottle. It would also include wine and it would make the per bottle split case fee more transparent than it currently is.

We thank the State Liquor Authority for proposing this rule which came about after The Alliance and the other state trade associations encouraged them to do so. We will keep you updated on how this matter proceeds and if adopted.