Alcohol

Bailment Inventory System

The term "Bailment" means delivery of personal property by a bailor (supplier) to a bailee (Iowa ABD) for specific purposes under an express or implied agreement of both parties. When those purposes are accomplished, the property will either be returned to the bailor, kept until the bailor reclaims it, or disposed of according to the agreement.

Suppliers ship listed products into the Iowa ABD warehouse, Iowa ABD sells it to retailers and Iowa ABD then pays suppliers for products and provides suppliers with accurate accounting of the inventory1.
The State of Iowa is the sole wholesaler of all distilled spirits in Iowa. Suppliers may not sell directly to retailers or consumers. To list a product in Iowa call 515.281.7416.

Suppliers are requested to furnish Iowa ABD with name, address and phone number of a bailment contact person (Sample A). The contact person will represent the supplier in all dealings with Iowa ABD regarding bailment inventory.

A "Bailment Authorization Form" (Sample B) granting Iowa ABD authority to effect the removal of the supplier's product from bailment by Iowa ABD through shipment or continuing basis will be requested from the supplier's designee or agent. The "Bailment Authorization Form" will be provided to each supplier by Iowa ABD and should be returned prior to the supplier's product being added to the bailment inventory.

Iowa ABD requests that an authorized representative of the supplier execute a "HOLD HARMLESS AGREEMENT" (Sample C) which states that the company will hold Iowa ABD harmless for losses incurred due to fire, water, or other damage by the elements while the supplier's inventory is stored at the Iowa ABD Warehouse. Iowa ABD will not cover costs or carry insurance for such losses.

1 Bailment is not to be confused with "consignment sales" as consignment sales are illegal as specified by the Alcohol and Tobacco Tax and Trade Bureau (TTB).