Public Act number 106 of 2016 was signed into law May 3, 2016 with immediate effect. This law is important to Michigan Microbrewers and Brewers because it allows for the use of unpaid social media promotion when promoting their brands. The Michigan Liquor Control Code and Administrative Rules (R 436.1319) do not allow cooperative advertising between manufacturers (Microbrewers & Brewers) and retail licensees such as restaurants, bars, grocery stores, party stores, etc. Prior to the passage of this law Microbrewers and Brewers were not allowed to mention the name of a retail licensee in their advertising, which would include social media posts.
It is worth noting that the current rules which do not allow a beer manufacturers to purchase advertising and mention a retail licensee by name do tend to level the playing field for small brewers and help them be more competitive in the marketplace. The problem is that when the MLCC Code and this Rule were put into place there was no social media and now this was an unintended consequence which needed to be corrected.
Public Act 106 allows Microbrewers and Brewers to use unpaid social media to advertise the following:
- An on-premises brand promotion
- Beer tastings under section 537 of the MLCC Code
- A product location communication
The entire Public Act can be downloaded below:
Public Act 106 of 2016
The Michigan Brewers Guild appreciates the support of the Legislature in clearing up this important issue, especially the bill’s primary sponsor, Representative Klint Kesto.