Manufacturers and wholesalers allowed to engage in the sale of nonalcoholic products.

2025-2026 Regular Session Introduced by Erin Koegel and 1 co-sponsor

The bill allows manufacturers and wholesalers of nonalcoholic products to engage in ordinary trade practices with retailers, so long as it does not unduly induce alcoholic purchase

Introduction and first reading, referred to Commerce Finance and Policy

#alcoholicbeverages #commercedepartment

Purpose and intent

HF 4936 seeks to amend Minnesota law to allow manufacturers and wholesalers that sell nonalcoholic products to engage in the sale and marketing practices of nonalcoholic offerings. The bill keeps in place existing prohibitions related to alcohol but creates an explicit allowance for nonalcoholic products to be marketed and sold under standard nonalcoholic industry practices, provided these activities are not used as an unlawful inducement to purchase alcoholic beverages. The change is codified in section 340A.308 of Minnesota Statutes.

Key provisions and changes

Maintains current prohibitions on alcohol-related transactions (existing law remains in effect):

Brewer or malt liquor wholesaler prohibitions on providing money, credit, equipment, or other things of value to retailers.
Retailers’ prohibitions on soliciting or accepting prohibited items from brewers or malt liquor wholesalers.
Restrictions related to retail license interests and related financial arrangements.
Specific allowable promotional items and loans up to specified cost thresholds (inside/outside signs, promotional materials, equipment for dispensing malt liquor, etc.), and other historical allowances for alcohol-related activities.

New provision regarding nonalcoholic products:

Section (new text) 340A.308(d):
A manufacturer or wholesaler engaged in selling nonalcoholic products may participate in ordinary, lawful trade practices of the nonalcoholic product industry.
The sales and practices surrounding nonalcoholic products must not be used as an unlawful inducement to purchase alcoholic beverages.
This provision explicitly does not apply to products regulated by Minnesota Chapter 342 (which covers nonalcoholic beverages with specific regulatory frameworks).

Who would be affected

Manufacturers and wholesalers of nonalcoholic products: Eligible to engage in typical nonalcoholic product trade practices with retailers, aligning their nonalcoholic activities with standard industry norms.

Retailers: May benefit from increased nonalcoholic product marketing and sales opportunities, subject to the overarching rule that nonalcoholic promotion cannot serve as an inducement for alcoholic beverage purchases.

Alcohol-focused entities: Agencies and license holders must continue to comply with existing alcohol-related prohibitions; the new provision explicitly limits nonalcoholic activities from crossing into unlawful inducement related to alcohol.

Procedural and timeline aspects

Introduction and referral: The bill was introduced and referred to the Commerce Finance and Policy committee on 2026-04-13.

Sponsors:

Primary sponsor: Noted as HF4936 with co-sponsors Erin Koegel and Bernie Perryman.

Effective date: The bill text does not specify an immediate effective date within the excerpt provided; typically, enacted provisions become effective on a future date specified in the final enacted version or, lacking that, on July 1 following enactment unless otherwise noted.

Notes

The bill’s primary purpose is to carve out a lawful path for nonalcoholic product manufacturers and wholesalers to engage in standard trade practices without triggering alcohol-related prohibitions, while safeguarding against any inducement that could influence alcoholic beverage purchases.

The specific reference to exclusion for products regulated under chapter 342 indicates alignment with existing nonalcoholic beverage regulatory regimes.

Bill