Bulletins Archives

Scan Based Trading (SBT) Involving Limited Service Delivery Wholesale Customers in Colorado

September 10, 2019

Upon reviewing the “Limited Service Delivery” section of the Colorado Milk Marketing Order which states as follows:

Limited Service Delivery means the transfer of milk or milk products to a customer at the door, loading platform or walk in refrigerated cooler of the customer’s permanent place of business, with the customer assuming full responsibility for such milk or milk product at the time of delivery (except for products determined to be defective at the time of delivery and returned by the customer not later than the fifth day following the date of delivery).

Home Delivery to Commercial Establishments

September 9, 2019

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.

Sales to Schools and Government Agencies

June 4, 2018

The Colorado Milk Marketing Order, Section III-14 provides that:

The sale of milk and milk products to the following institutions and agencies shall be exempt from the requirement for uniform sales at filed prices, discounts, and rebates:

A. Elementary schools, limited to all grade schools through high school grades, public, private, parochial or otherwise that are operated for the same basic educational purpose as public schools and which provide similar non-profit lunchroom facilities for the benefit of students.

Regarding Milk Based Supplement Shakes, Milk Based Protein Drinks, and Other Products

January 24, 2018

Recently, we have had some inquiries about whether wholesale prices for these types of drinks should be posted with this office.

Based on our review of some of these products, if the main or leading ingredient on the label is “milk, skim milk”, or other products currently regulated by the Colorado Milk Marketing Order the wholesale prices of these products should be posted with this office, and they are subject to the assessment. The general guidance is if these products contain 50% or more of milk products currently regulated by The Colorado Milk Order the prices must be posted with this office. Read more

Leasing of Refrigerated/Freezer Equipment to Retail Customers

May 11, 2016

The Colorado Milk Marketing order is enforced by the Colorado Milk Marketing Board.

The Colorado Milk Marketing Order, Section lll, Paragraph 19, titled “LEASING”, states
a handler, handler-distributor, or distributor may lease portable refrigerated units to a purchaser or prospective purchaser of milk and milk products provided the following conditions are met:

Filing of Prices

June 11, 2015

Each handler, handler-distributor or distributor shall file with the Commissioner a complete schedule of wholesale prices for the sale of milk or milk products in the marketing area in which such sales are being made.

Full Service and Limited Service Delivery

July 22, 2014

It has come to the attention of this office that some handlers, handler-distributors and distributors are crediting limited service delivery customers for the return of out-of-date milk or milk products and rotation of products n freezers/coolers. This practice has, at times, been referred to as “guaranteed sales.” The Milk Order clearly states that limited service delivery shall not include price marking, case stocking, or credit for returned products.

Illegal Combination Sales and Sales of Other Products

February 19, 2014

It has come to the attention of this office that some Restaurants, Hotels and Institutional Businesses have been receiving a discount on milk products when combined with all other purchases including food, paper supplies etc. The additional purchase of milk products allows the customer an enhanced discount on all or some of the products purchased from the Distributor. This is prohibited by the Colorado Milk Marketing Order (CMMO).

The purpose of this bulletin is to remind you of Section IV titled “Indirect Discounting and Rebates”, Paragraph 5, titled “Combination Sales and Sales of Other Products” (page 22) of the CMMO:

Illegal Slotting Fees

November 6, 2008

It has come to the attention of this office that some retail stores, particularly grocery stores, require a monetary payment to a customer or prospective customer in order to get your product into the store. In the past, this practice has been referred to as a “slotting fee” and is prohibited by the Colorado Milk Marketing Order (CMMO).

The purpose of this bulletin is to remind you of Section IV, Paragraph 1, titled “Indirect Discounting and Rebates” (pages 20 – 22) of the CMMO: