Home Delivery to Commercial Establishments

Recently, we have had some inquiries regarding businesses involved in the delivery of dairy products from businesses to commercial establishments.

The review by the Milk Board has provided the following guidance:

The Colorado Milk Order, promulgated under the Marketing Act of 1939 (35-28-101 through 123, C.R.S.), defines “Distributor” as any person, other than a handler, producer-handler, or handler-distributor, engaged in the operation of selling, marketing, or distributing milk or milk products other than at retail in the State of Colorado which he or she has purchased or acquired from a handler, producer-handler, or a handler-distributor, whether as owner, agent, broker, or otherwise, and shall include a person who has milk processed for him by a handler.

The Colorado Milk Order defines “Wholesale Customer” as any person other than a handler, producer-handler, handler-distributor, or distributor, who purchase milk or milk products for resale.

Home delivery on a regular basis to commercial establishments such as businesses, daycare centers, convenient stores, restaurants, coffee shops, stores, and other business entities that resell milk products are wholesale transactions and are subject to the requirement of the Colorado Milk Marketing Order.

This includes e-commerce and internet transactions with businesses as described above.

Compliance with the Colorado Milk Marketing order is required, and the price posting requirements apply in these cases.

Thank you for your cooperation in this matter.

Peter Hunkar
Director
Colorado Milk Marketing Board