<?xml version="1.0"?>
<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>60540</law_id><section_number>4.1-401</section_number><catch_line>Definitions</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><structure><unit label="title" level="1" order_by="1" identifier="4.1">Alcoholic Beverage and Cannabis Control</unit><unit label="subtitle" level="2" order_by="1" identifier="I">Alcoholic Beverage Control Act</unit><unit label="chapter" level="3" order_by="1" identifier="4">Wine Franchise Act</unit></structure><text>
						<section><p>As used in this chapter, unless the context requires a different meaning:
		&#x201C;<span class="dictionary">Agreement</span>&#x201D; means a commercial relationship, not required to be evidenced in writing, of definite or indefinite duration, between a <span class="dictionary">winery</span> and <span class="dictionary">wine wholesaler</span> pursuant to which the wholesaler has been authorized to distribute one or more of the <span class="dictionary">winery</span>&#x2019;s <span class="dictionary">brands</span> of wine. The doing or accomplishment of any of the following acts shall constitute prima facie <span class="dictionary">evidence</span> of an <span class="dictionary">agreement</span> within the meaning of this definition:</p></section>
						<section id="1"><p><span class="prefix-number">1.</span> The shipment, preparation for shipment or acceptance of any <span class="dictionary">order</span> by a <span class="dictionary">winery</span> for any wine to a <span class="dictionary">wine wholesaler</span> within the Commonwealth. <a id="paragraph-221330" class="section-permalink" href="https://vacode.org/4.1-401/#1"><i class="fa fa-link"/></a></p></section>
						<section id="2"><p><span class="prefix-number">2.</span> The payment by a <span class="dictionary">wine wholesaler</span> and the acceptance of payment by any winery for the shipment of an <span class="dictionary">order</span> of wine intended for <span class="dictionary">sale</span> in the Commonwealth.
			&#x201C;Brand&#x201D; means any word, name, group of letters, symbol or combination thereof adopted and used by a winery to identify a specific wine product and to distinguish that product from other wine produced or marketed by that winery or other wineries. The use of general corporate logos or symbols or the use of advertising messages, whether appearing on the product packaging or elsewhere, shall not be considered to be a brand, <span class="dictionary">brand extension</span>, or part thereof as these terms are used in this chapter.
			&#x201C;<span class="dictionary">Brand extension</span>&#x201D; and &#x201C;<span class="dictionary">extension of a brand</span>&#x201D; mean any brand which incorporates all or a substantial part of the unique features of a preexisting brand of the same winery and which relies to a significant extent on the good will associated with such preexisting brand.
			&#x201C;<span class="dictionary">Dual distributorships</span>&#x201D; means the existence of <span class="dictionary">agreements</span> between a single winery and more than one wholesaler, each selling a different brand, in a given territory as the result of a purchase of another winery.
			&#x201C;<span class="dictionary">Nonsurviving winery</span>&#x201D; means any winery which is purchased by another winery as provided in &#xA7; <a class="law" title="Sale of winery" href="/4.1-405/">4.1-405</a> and, as a result, ceases to exist as an independent legal entity.
			&#x201C;<span class="dictionary">Person</span>&#x201D; means a natural <span class="dictionary">person</span>, corporation, partnership, trust, agency or other entity as well as the individual officers, directors or other <span class="dictionary">persons</span> in active control of the activities of each such entity. <span class="dictionary">Person</span> also includes heirs, assigns, personal representatives and conservators.
			&#x201C;Purchase&#x201D; includes, but is not limited to, the <span class="dictionary">sale</span> of stock, <span class="dictionary">sale</span> of <span class="dictionary">assets</span>, merger, lease, transfer or <span class="dictionary">consolidation</span>.
			&#x201C;<span class="dictionary">Surviving winery</span>&#x201D; means the winery which purchases a <span class="dictionary">nonsurviving winery</span> as provided in &#xA7; <a class="law" title="Sale of winery" href="/4.1-405/">4.1-405</a>.
			&#x201C;Territory&#x201D; or &#x201C;<span class="dictionary">sales territory</span>&#x201D; means the area of primary sales responsibility within the Commonwealth expressly or implicitly designated by any <span class="dictionary">agreement</span> between any <span class="dictionary">wine wholesaler</span> and winery for the brand or <span class="dictionary">brands</span> of any winery.
			&#x201C;<span class="dictionary">Wine wholesaler</span>&#x201D; means any wholesale wine <span class="dictionary">licensee</span> offering wine for <span class="dictionary">sale</span> or resale to retailers or other <span class="dictionary">wine wholesalers</span> without regard to whether the business of the <span class="dictionary">person</span> is conducted under the terms of an <span class="dictionary">agreement</span> with a <span class="dictionary">licensed</span> winery.
			&#x201C;Winery&#x201D; means every <span class="dictionary">person</span>, including any authorized representative of such <span class="dictionary">person</span> pursuant to &#xA7; <a class="law" title="Limitation on wine and beer importers" href="/4.1-218/">4.1-218</a>, which enters into an <span class="dictionary">agreement</span> with any Virginia wholesale wine <span class="dictionary">licensee</span> and (i) is <span class="dictionary">licensed</span> as a winery or is <span class="dictionary">licensed</span> as a Virginia <span class="dictionary">farm winery</span>, (ii) is <span class="dictionary">licensed</span> as a wine importer and is not simultaneously <span class="dictionary">licensed</span> as a <span class="dictionary">wine wholesaler</span>, (iii) manufactures or <span class="dictionary">sells</span> any wine products, whether <span class="dictionary">licensed</span> in the Commonwealth or not, or (iv) without regard to whether such <span class="dictionary">person</span> is <span class="dictionary">licensed</span> in the Commonwealth, has title to any wine products, excluding Virginia wholesale <span class="dictionary">licensees</span> and retail <span class="dictionary">licensees</span>, and has the manufacturer&#x2019;s authorization to market such products under its own brand or the manufacturer&#x2019;s brand. <a id="paragraph-221331" class="section-permalink" href="https://vacode.org/4.1-401/#2"><i class="fa fa-link"/></a></p></section></text><history>Code 1950, &#xA7;&#xA7; 4-118.21, 4-118.23; 1985, c. 542, &#xA7; 4-118.43; 1986, c. 102; 1989, c. 10; 1991, c. 628; 1993, c. 866; 1997, c. 801.</history><metadata></metadata></law>
