2023 Delaware Code › Title 4 - Alcoholic Liquors › Chapter 5. LICENSES AND TAXES › Subchapter II. Purchase, Sale and Dispensing › § 512G. Shipment of alcoholic beverages between commonly-owned entities.

§ 512G. Shipment of alcoholic beverages between commonly-owned entities.
(a) Any entity licensed in this State pursuant to § 512A, § 512B, § 512C or § 512E of this title, or any out-of-state supplier licensed pursuant to § 501 of this title who, as determined by the Commissioner, would meet the requirements of § 512A, § 512B, § 512C or § 512E of this title if it were located in this State, is permitted to sell or ship alcoholic beverages they manufacture to an entity licensed in this State pursuant to § 512A, § 512B, § 512C or § 512E of this title subject to all of the following conditions:
(1) The shipping and receiving licensees must be under common ownership and control, the licensees' domestic sales of beer must be less than 6 million barrels in a calendar year, and must both apply for and receive a permit pursuant to this section.
(2) A licensee must apply for a permit with the Commissioner setting forth the nature of its license, naming the licensees or out-of-state suppliers that it desires to ship to directly or receive alcoholic beverages from directly, and such other information as the Commissioner may require.
(3) The Commissioner shall determine if a licensee meets the requirements of § 512A, § 512B, § 512C or § 512E of this title and is otherwise qualified for a permit pursuant to this section.
(4) If the Commissioner determines the licensee is eligible, the Commissioner shall issue a permit to the licensee.
(5) A permit holder under this section shall be permitted to sell product properly received under the terms of its permit as though it were manufactured at its premises, in accordance with the terms and conditions of its license, so long as it is permitted to manufacture that type of alcohol.
(6) If a licensee's total domestic sales of beer for all affiliated suppliers or manufacturers is between 2 million and 6 million barrels of beer in a calendar year, transfers authorized by this section from licensees pursuant to § 501 and § 512C of this title to commonly owned licensees pursuant to § 512B of this title for the purpose of sales to consumers for consumption on the brewery-pub premises may be made only if the brands transferred for on-premise consumption are produced under the same trade name approved by the Commissioner for the licensee pursuant to § 512B of this title. Licensees pursuant to § 512B of this title may sell product to consumers produced by affiliated licensees under different trade names for consumption on the brewery premises if such product is purchased from a licensee pursuant to § 522 of this title.
(7) For purposes of this section, “trade name” means a trade name approved by the Commissioner that is consistent with the definition in § 3302 of Title 6 or a successor statute.
(b) As used in this section, “common ownership and control” means that the shipping and receiving licensees applying for a permit under this section manufacture and sell the same brands of alcoholic liquor that each such licensee desires to ship to directly or receive from directly the other, share at least a majority of the same directors, officers, members, or other fiduciaries, and are owned 51 percent or more by 1 person. It shall be permitted for the interest of 51 percent or more in the shipping licensee and the interest of 51 percent or more in the receiving licensee to be held by more than 1 person, but only if 1 of the following is satisfied:
(1) One person is an individual and the other person(s) is 1 or more trusts, the beneficiaries of which include such individual, such individual's spouse, or such individual's lineal descendants; or
(2) Each person is 1 or more trusts established by the same settlor for the benefit of the settlor, the settlor's spouse, or the settlor's lineal descendants, and are managed by the same fiduciaries; or
(3) Such interests are held by the same individuals.
(c) For the purposes of this section, “person” shall be defined as set forth in § 1-201(b)(27) of Title 6.
81 Del. Laws, c. 276, § 1;  82 Del. Laws, c. 22, § 1;  82 Del. Laws, c. 141, § 4;