Title 4 Law Book - Arizona Department of Liquor Licenses and Control

1. "Primary source of supply" means the distiller, producer, owner of the commodity at the time it becomes
a marketable product, bottler or exclusive agent of any such distributor or owner. In the case of imported products,
the primary source of supply means either the foreign producer, owner, bottler or agent or the prime importer from,
or the exclusive agent in, the United States of the foreign distiller, producer, bottler or owner.
2. "Wholesaler" means any person, firm or corporation that is licensed in this state to sell to retailers and
that is engaged in the business of warehousing and distributing brands of various suppliers to retailers generally in
the marketing area in which the wholesaler is located.
A.R.S. §4-243.02. Sale of beer, wine or distilled spirits by producer; limitations
A. A person who holds a producer's license may sell beer produced by the producer through the producer's
own on-sale retail premises if:
1. The producer also holds an on-sale retail license.
2. The retail sale of the beer is on or adjacent to the premises of the producer.
B. A person who holds a producer's license may sell wine or distilled spirits produced by the producer at
the producer's licensed premises.
A.R.S. §4-243.04. On-sale retail licensees; ownership interests; conditions
A. Notwithstanding section 4-243, a distiller, vintner, brewer, rectifier, blender or other producer of
spirituous liquor may have a direct or indirect ownership interest or a financial interest in the license, premises or
business on an on-sale retail licensee if each of the following conditions are met:
1. The retail licensee purchases all spirituous liquor for sale at the premises from wholesalers that are
licensed in this state.
2. The retail licensee does not purchase or sell any brand of spirituous liquor produced by the distiller,
vintner, brewer, rectifier, blender or other producer of spirituous liquor or by any of its subsidiaries or affiliates.
3. The sale and service of spirituous liquor at the premises is an independent business that is owned,
managed and supervised by a person or entity that is not employed by and does not have an ownership interest in the
retailer's license, premises or business and is not employed by and does not have an ownership interest in the
distiller, vintner, brewer, rectifier, blender or other producer of spirituous liquor. The person owning, managing and
supervising the sale and service of spirituous liquor on the premises of the on-sale retail licensee shall be properly
licensed by the department and shall have entered into a commercial lease or operating or management agreement
with the owner or operator of the premises. This paragraph does not prohibit the sale and service of spirituous liquor
by employees of the owner or operator of the premises who act under the supervision of the independent
licensee. This paragraph does not prevent the payment of rent, rent calculated as a percentage of gross receipts or a
percentage of gross receipts from the sale of spirituous liquor to the owner or operator of the premises.
B. Notwithstanding section 4-243, a distiller, vintner, brewer, rectifier, blender or other producer of
spirituous liquor may directly or indirectly furnish, give, rent, lend or sell to an on-sale retail licensee equipment,
fixtures, signs, furnishings, money or other things of value if each of the following conditions are met:
1. The retail licensee purchases all spirituous liquor for sale at the premises from wholesalers that are
licensed in this state.
2. The retail licensee does not purchase or sell any brand of spirituous liquor produced by the distiller,
vintner, brewer, rectifier, blender or other producer of spirituous liquor or by any of its subsidiaries or affiliates.
3. The retail licensee is a franchisee of a person that is affiliated with the distiller, vintner, brewer, rectifier,
blender or other producer of spirituous liquor and the compensation paid by the retail licensee as a franchise fee or
royalty is not based on revenue derived from the sale of spirituous liquor.
A.R.S. §4-244. Unlawful acts
It is unlawful:
1. For a person to buy for resale, sell or deal in spirituous liquors in this state without first having procured
a license duly issued by the board.
2. For a person to sell or deal in alcohol for beverage purposes without first complying with this title.
3. For a distiller, vintner, brewer or wholesaler knowingly to sell, dispose of or give spirituous liquor to
any person other than a licensee except in sampling wares as may be necessary in the ordinary course of business,
except in donating spirituous liquor to a nonprofit organization which has obtained a special event license for the
purpose of charitable fund raising activities or except in donating spirituous liquor with a cost to the distiller, brewer
or wholesaler of up to five hundred dollars in a calendar year to an organization that is exempt from federal income
taxes under section 501(c) (3), (4), (6) OR (7) of the internal revenue code and not licensed under this title.
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June 8, 2012