Self-distribution allowance

Definition

A second permit letting a brewery wholesale its own beer, capped, and lost when the owner changes.

Why It Matters

The shape is not an allowance a brewery enjoys under a line; it is a permit it goes and obtains. North Carolina states it cleanly: a brewery may obtain a malt beverage wholesaler permit to sell, deliver and ship up to fifty thousand barrels of its own beer a year to unaffiliated retailers, and that authorization applies only to a brewery selling fewer than a hundred thousand barrels a year in total. Two numbers doing different jobs, and the second one removes the permit instead of capping it. What matters at closing is severe: all permits for an establishment automatically expire and are surrendered when ownership changes, and a twenty five percent stake moving does the same thing, which is what a staged buyout walks into. A successor with use and control of the premises may operate on the predecessor's permits after giving notice before it starts, and must apply within sixty days.