A Primer on Beer Tastings: Know Your Options

There are a couple of different ways a brewer can get their beer out to a wider audience outside of their brewery. One of course is through distribution to retailers. Another, that has the benefit of getting a lot of people to try your product for the first time, and with built-in goodwill, is to conduct tastings. Be sure you are aware of the regulations governing tastings before you get started to avoid any potential adverse consequences to your license. On-premises tastings: You can hold tastings on your own licensed premises either with or without charge, but not on any portion of your premises that are licensed with a retail license. You may only offer tastings of beer produced or bottled by or for your brewery. Off-premises tastings at nonprofit events: Your beer manufacturer’s license allows you to conduct tastings of your beer off of your licensed premises only for events sponsored by a nonprofit organization. The event must be one attended only by persons affiliated with that nonprofit (each of whom may bring up to three guests to the tasting), and you may not sell or solicit sales of your beer “in that portion of the premises where the beer tasting is being conducted.” (B&P Code § 23357.3(a); CCR 53.5.) You may however, distribute…

The Sip Stops Here…but Not There, or There, or There: New Restrictions on Interstate Shipping of Wine

According to some retailers, UPS and FedEx are now limiting the interstate shipping of wine. This crackdown is not in response to any new legislation – the shipping companies are instead enforcing existing laws in many states. But First, a Primer on Shipping Alcohol Across State Lines The Twenty-first Amendment to the United States Constitution provides that the transportation or importation into any State, Territory, or possession of the United States for delivery or use therein of intoxicating liquors, in violation of the laws thereof, is prohibited. With the repeal of Prohibition, states were granted significant power over the distribution and sale of alcohol that is not present in laws related to shipping other products. This has led to wildly disparate treatment of the ability to ship alcohol across state lines. For instance, some states allow residents to order wine from any retailer in the US while others don’t allow any shipments at all. The Liquor Law Repeal and Enforcement Act (aka the Webb-Kenyon Act) prohibits shipments of alcoholic beverages between states in violation of any law of the receiving state. The Federal Alcohol Administration Act (FAA Act) requires a basic permit for wholesalers, importers, and manufacturers of alcoholic beverages. (Retailers are not required to obtain basic permits under the FAA Act.) Basic permits are…

2015 Grape Escape – Cancelled After Vendors Refuse to Participate in Event Sponsored by Retailer

We recently posted about how social media is advertising, and the care wine manufacturers need to take to ensure they do not run afoul of state tied-house laws. The impact of those laws is being felt locally here in Sacramento, where organizers of the “Grape Escape” – an annual showcasing of local food and wines – have canceled this year’s event which was to be held in early June. Articles about the cancellation indicate that only four wineries signed up to participate this year, down from 47 a year ago. The primary reason appears to be fears over potential citations from the ABC. Last year, eight participants were investigated and put on probation (but not fined) for mentioning the event’s retail sponsor, Save Mart, in their social media postings, or directing consumers to the retailer to purchase tickets. Because manufacturers may not give anything of value to a retailer without violating tied-house restrictions, and because advertising constitutes a thing of value, social media mentions of a retailer by a manufacturer (i.e. “advertising”) runs afoul of the law. Wine and food events such as the Grape Escape have a long and wonderful history. It’s a shame that retail sponsorship of such events can make vendors so nervous they choose not to participate, rather than develop specific guidelines or practices to ensure their promotion of the…