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Committee backs bill to protect wholesalers’ choice of e‑commerce platforms, clarify successor‑brewer rules

January 15, 2025 | Industry and Business, Senate, Legislative, North Dakota


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Committee backs bill to protect wholesalers’ choice of e‑commerce platforms, clarify successor‑brewer rules
The Senate Committee on Industry and Business voted unanimously to give Senate Bill 2136 a do‑pass recommendation after hearing industry testimony that the bill protects wholesaler independence and clarifies successor‑brewer law.

Lobbyists and wholesalers told the committee manufacturers have begun to press wholesalers to use or avoid specific e‑commerce platforms, a practice they said can undermine the separate, independent three‑tier distribution system. "Mandating or prohibiting the use of a specific platform undermines wholesaler independence," Dennis Patherath, a lobbyist for the North Dakota Beer Distributors Association, told senators.

Hunter Jerome, general manager of Jerome Distributing and president of the association, said wholesalers need the freedom to choose the platform they use to take orders and manage invoices. "We want to be able to choose which one we want to use," Jerome said, describing a national context in which platform mandates have led to clashes between manufacturers and independent wholesalers.

The bill also adds language to protect wholesalers' confidential financial information. Patherath and others said a manufacturer should not be able to demand a wholesaler's financials tied to competing brands. Patherath said the bill codifies language that previously appeared in a Department of Justice consent order tied to a national antitrust matter; the consent order is set to expire in 2026, proponents said, and putting similar language into state statute would preserve the protection locally.

Anheuser‑Busch's representative, Todd Kranda, said the company is generally supportive of the bill but remains "lukewarm" on one financial‑provision to which corporate counsel may still propose refinements. Kranda told the committee Anheuser‑Busch wants to take part in further technical conversations so the committee would not be surprised by later changes.

After testimony the committee moved a do‑pass motion. Senator Kessel moved a do‑pass recommendation, Senator Klein seconded, and the committee approved the motion by roll call. Senators present recorded unanimous votes of "aye." The committee chair announced a unanimous do‑pass on Senate Bill 2136.

Supporters said the bill would preserve choice for wholesalers, maintain the three‑tier system's competitive functioning and clarify that purchaser entities (including private equity buyers) are subject to successor‑brewer protections, preventing the loss of a wholesaler's built goodwill when a brewer is sold.

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