Many Happy Returns of the Day…Just Not What You Thought
Generally, when Connecticut liquor retailers purchase alcoholic liquor from wholesalers in the state, returns prohibited except under special circumstances and must usually be approved by the Department of Consumer Protection, Liquor Control Division ("Division").
During the COVID-19 pandemic, the Division relaxed its review of product returns to assist retailers and allowed a greater number of returns.
Following the pandemic and a "return to normalcy", the Division that it appeared that some retailers began using the "relaxed" review as a means of inventory control and as a tool to pit competing wholesalers against each other for business. Understandably, wholesalers complained that this review process should be examined and address the confusion within the industry.
The Division agreed and offered the following guidance to the liquor industry as to what constitutes "good cause" for returns, and that became effective at the first day of this year. Such requests require a review and approval from the Division, and is done through an online portal.
The following will be considered "good cause" for return:
The item is damaged, contaminated, or tainted at time of delivery and noted to the wholesaler at the time of delivery (approval is deemed given-no need to report for divisional approval);
Any return requested within five (5) days of delivery (approval is deemed given - no need to report for divisional approval);
Customer order error within two weeks of delivery;
Warehouse mis-pick, incorrect vintage, or salesman error within two weeks of delivery;
Breakage, corkage leak, or damaged labels within one month of delivery;
Product out-of-code/expired within three months of delivery;
Manufacturer recall regardless of date of delivery;
Termination of business or closure of seasonal business within one month of closure; and
Other situations where the retailer can demonstrate an ordinary and usual commercial reason for the return.
The Division noted that returns are always at the discretion of the wholesaler. A wholesaler may refuse a return, even if it falls within one of the categories outlined above. However, wholesalers' internal policies should be followed consistently for all liquor retailers they service.
This thoughtful policy and guidelines to the industry is just another example of the Division's attempt to "level the playing field" for the competing interests of the Connecticut liquor industry.