FAQ’s
Frequently Asked Questions
The FAQ’s section of the Compliance Corner provide guidance on various topics that breakdown the best practices to help steamline your processes, broken down into different sections below. Please don’t hesitate to reach out if you have questions we haven’t covered. Your insights are invaluable, and we would love to assist you further through the ABC Consultation Program if the information you are looking for is not available.
Beer Manufacturing Definition/Privileges
The California definition of beer is specified in Section 23006. The CCBA advocated for an expanded definition that now permits beer to be produced with honey, fruit, fruit juice, fruit concentrate, herbs, spices, and other food materials. Additionally, this definition allows beers to be aged in barrels that previously held wine or distilled spirits while still being classified as beer.
Section 23006 “Beer” means any alcoholic beverage obtained by the fermentation of any infusion or decoction of barley, malt, hops, or any other similar product, or any combination thereof in water, and includes ale, porter, brown, stout, lager beer, small beer, and strong beer, but does not include sake, known as Japanese rice wine. Beer may be produced using the following materials as adjuncts in fermentation: honey, fruit, fruit juice, fruit concentrate, herbs, spices, and other food materials. Beer aged in an empty wooden barrel previously used to contain wine or distilled spirits shall be defined exclusively as “beer” and shall not be considered a dilution or mixture of any other alcoholic beverage.
To renew and maintain a beer manufacturer’s license, the Alcoholic Beverage Control (ABC) requires you to actively brew beer. If you hold a beer manufacturer license, you must meet the “beer manufacturer” definition specified in Section 23012 of the Business & Professions Code, which describes an entity “engaged in the commercial manufacture of beer.”
Q: What is the limit on the number of beer manufacturer licenses I can own in California, and what are the rules regarding duplicate licenses?
A: If you hold a Type 01 or Type 23 license, you can own unlimited beer manufacturing production premises. Additionally, you are allowed to have up to eight duplicate licenses for tasting rooms. Out of these eight duplicate licenses, a maximum of four can be for bona fide eating establishments, which allows the sale of other beers and wines in addition to your own products.
Beer manufacturers licensed by the Alcoholic Beverage Control (ABC) can sell the beer they produce directly to consumers, either on-site at their licensed premises or to a retailer.
Thanks to the efforts of the CCBA, breweries are no longer required to go through a label approval process; however, they must still register their labels.
- Label requirements apply equally to all types of containers, including bottles, crowlers, growlers, and cans. To register your beer brand, please use the following link.
- ABC: Beer Brand Registration
Q: We would like to brew a collaborative beer and share the costs of the ingredients with another local brewery. Can we legally share material costs and split the profits with the other brewery? Who would be responsible for submitting the price posting for the beer?
A: According to ABC law, only the manufacturing brewery can sell the beer through their tasting room, self-distribute, or sell through a licensed wholesaler. This brewery is also responsible for paying taxes and posting prices for the beer. Collaborating breweries cannot split the sales revenue from the beer. However, you can brew two separate batches—one at each brewery. Each brewery would be responsible for price posting and brand registration for the beer produced at their facility.
Q: We’ve received a request from a local restaurant to brew a private-label beer for them. Do we need to enter into a contract, file a DBA, and proceed with brand registration and price posting as usual? Can we co-brand our name on the label alongside the retailer’s?
A: A beer manufacturer can legally produce a private-label beer for a retailer. However, the manufacturer must charge the retailer a base price (fair market value) for the beer’s production and label development. Once sold, the retailer will own the beer, including the label and brand.
You must enter into a contract with the retailer that specifies their ownership of the beer. The beer manufacturer remains responsible for filing the ABC brand registration and price posting at the agreed-upon price.
You only need to file a DBA if the retailer wants the beer to be brewed under a fictitious business name. If this is the case, you will need to file the fictitious business name with your county for the new beer brand. The label must indicate the type of beer in the container and, in smaller print, state your brewery as the beer’s manufacturer.
It’s important to note that the beer manufacturer cannot share in the branding or profits from the sale of the beer with the retailer. Any shared success (or lack thereof) from the beer’s sales could be viewed as a shared interest, which is explicitly prohibited.
Breweries are not required to fill growlers from other breweries, but they may choose to do so if all information from the original brewery is removed or obscured. Some breweries opt not to fill growlers from other sources for various reasons that many consumers may not fully understand.
You must attach your label to any growler that you fill. Please note that the new Brand Registration process has replaced the previous label approval process with the ABC.
In 2016, the California Craft Brewers Association (CCBA) and the California Homebrewers Association supported Assembly Bill 2172 (Jones), which allows individuals to bring their home-brewed beer to ABC-licensed clubs, restaurants, bars, brewpubs, and small beer manufacturers. However, this is only permitted during homebrew club meetings or home brewing competitions. Club members may also exchange and consume their home-brewed beer at these events. Please note that patrons who are not members of the club are not allowed to consume any home-brewed beer.
Below are guidelines on how a brewery can legally produce a private-label beer for a retailer.
Contract: The brewer and retailer enter a written contract stating that the retailer owns the beer. However, the brewer is responsible for filing the ABC brand registration and price posting at the negotiated price.
Fair Market Value: The brewer must charge a base price, which is the fair market value for the cost of manufacturing the beer and developing the label. The brewer cannot provide a discount to the restaurant.
Restricted Sale: The beer can only be sold to that specific retailer. Once sold, the retailer owns that beer (label and brand). The retailer cannot sell the beer to other retailers, such as grocery and liquor stores.
Brand: The retailer usually wants to brand the beer under its name. If so, the brewer must file a fictitious business name statement (DBA) with the relevant county. However, the label must identify the brewery as the beer’s manufacturer, typically in a small but legible font. However, you cannot co-brand with the retailer or use your logo.
No Profit Sharing: The brewery cannot share the profits from the beer sale with the retailer.
Unbranded Beer: You cannot provide unbranded beer to the wholesaler for use at multiple retail premises.
Compliance
In recent years, breweries have faced challenges from malicious lawsuits exploiting ADA website compliance. To mitigate these risks, breweries are encouraged to take proactive steps toward ensuring their websites meet accessibility standards, fostering inclusivity while protecting their businesses.
A supplier cannot extend credit to a retailer who has not made payment within 30 days. Extending credit beyond this period is viewed as providing a thing of value to the retailer. Instead, you can require the retailer to pay for all deliveries in cash on delivery (COD) if their balance is over 30 days.
Since the legalization of commercial recreational cannabis use in 2018, many questions have arisen about what activities are permitted on premises licensed by the Department of Alcoholic Beverage Control (ABC) to manufacture or sell alcoholic beverages. You can view the ABC Advisory on this topic for more details.
California breweries can now partner with caterers to serve and sell food directly to the public without being subject to the full range of food facility regulations.
Direct To Consumer Sales, Delivery, and Shipping
Selling and Delivering Beer Directly to Consumers
Q: Am I allowed to deliver my beer directly to consumers?
A: In California, a Type 23 or Type 01 license allows you to sell and deliver beer directly to consumers. Your brewery is responsible for the transaction and entirely responsible for compliance with all laws, including prohibitions against selling to minors or individuals who are obviously intoxicated; such violations can affect your ABC license. Please note that the sales order must be conducted on the licensed premises according to current law. This includes sales made via phone or online, which are also considered to take place on the licensed premises. This rule also applies to third-party deliveries, where they pick up the beer on behalf of the customer and then deliver it.
Q: Can I work with a third party to deliver my beer directly to consumers?
A: A third-party, non-licensed entity can deliver the beer purchased from your brewery directly to consumers. However, it’s important to note that whether your brewery employee or a third-party non-licensed entity is delivering the beer, your brewery (type 23 /01) remains liable if the beer is delivered to someone under 21 years of age or to someone obviously intoxicated.
Q: Are there any restrictions on when I can deliver beer to consumers?
A: Deliveries can be made at any time except between the hours of 2:00 a.m. and 6:00 a.m. daily. Unlike wholesaler sales, direct sales to consumers and deliveries are permitted on Sundays.
Q: Do I need to post prices for deliveries to consumers:
A: No, you are not required to post your direct-to-consumer prices with the ABC when delivering beer to consumers.
Q: Do I need to charge a delivery fee?
A: You are not required by the ABC to charge a delivery fee; however, you cannot advertise “free delivery.”
Q: Are there different requirements for selling a keg of beer directly to consumers?
A: According to Section 25659.5 of the ABC Act, you must tag and track kegged beer sold directly to consumers.
Q: Am I allowed to ship my beer directly to consumers?
A: Yes, with a Type 23 license, you can sell and ship beer directly to consumers in California. As the brewery, you are responsible for the entire transaction, including ensuring that you do not sell to minors or individuals who are obviously intoxicated, as these actions would violate your ABC license.
Q: Is it necessary to register a beer keg sold to consumers?
A: Every retailer selling keg beer to consumers must attach an identification tag to each keg at the time of sale. Additionally, the purchaser is required to sign a receipt. This keg identification system allows for the traceability of kegs.
Possessing a keg while knowing it is not properly identified or providing false information on the Beer Keg Registration Receipt is considered a misdemeanor.
Q: If a competitor consistently fails to charge a keg deposit when delivering beer to retailers, can that be considered an inducement? How should I respond when a retailer tells me I shouldn’t charge a keg deposit because XYZ Brewery doesn’t charge one?
A: You are not required to charge a deposit. However, if a brewery chooses not to charge a deposit, this policy must apply consistently to all retailer accounts. If you charge a deposit, it must be included as a separate line item on the invoice. Not charging a deposit is not considered an inducement as long as the policy is applied uniformly across all accounts.
However, if a specific retailer is not charged a deposit while others are, this would be seen as providing something of value and could be a violation. If a retailer suggests that you shouldn’t charge a deposit, that is their opinion, and ultimately, you will need to decide whether or not you want to sell kegs to all retailers without requiring a deposit.
Note: If you charge keg deposits, they must be included in your price posting schedules. You cannot legally charge them if they are not listed on your price posting schedules.
Distribution
AB 2991 established a requirement that wholesalers be paid by retailers using EFT and ended the practice of cash payments. This law does not apply to self-distribution as “wholesale licensee” is defined in existing law. CCBA worked to ensure that self-distribution was exempted from EFT. Beer manufacturers who self-distribute can still be paid by card. Cash will only be allowed as payment from a retailer in emergency situations.
California Code of Regulations Section 105 requires that beer prices be submitted through the Online Beer Price Posting system. To get started, visit the Beer Price Posting page on the Alcoholic Beverage Control website.
Licensed beer manufacturers in California may sell beer to any person holding a license authorizing them to sell beer. To self-distribute your beer to a licensed retailer, you need to ensure you are doing the following:
Price Posting: File and maintain price schedules with the California Alcoholic Beverage Control (ABC). You are required to submit a price schedule for each county where your customers are located. Additional information on price posting requirements can be found here:
Beer Brand Registration: Section 25200 no longer requires beer manufacturers to furnish labels of beer containers to the Department for its review and filing. However, before the first sale of a beer brand in this state, every beer manufacturer must register the beer with the ABC. Additional information on beer brand registration can be found here:
Hours For Delivery: Deliveries to retail accounts are only allowed between 3:00 AM and 8:00 PM, from Monday to Saturday. No deliveries are permitted on Sundays.
Credit Law: The law prohibits suppliers (manufacturers or wholesalers) from extending credit to retailers who have not paid their bills within 30 days. Offering credit beyond this period is considered a “thing of value.” California’s credit law requires suppliers to charge specific interest rates based on how late customers are with their payments and enforce cash on or before delivery terms for customers with overdue accounts.
Educational/Special Events
Assembly Bill 2174 (Aguiar-Curry) was a CCBA sponsored bill that established the “Beer Caterer’s Permit” to allow beer manufacturers to sell their product at special events. This law allows craft breweries to sell their beer in sectioned areas at public and private events using a Beer Caterer’s Permit.
Q: Is the type 91 good for a year from my application date?
A: Sometimes. The type 91 is tied to your master license and renews at the same time. While the type 91 is, technically, good for one year, you will need to renew sooner if your master license renews sooner than the type 91. If your master license is up for renewal in two months and you don’t have any events lined up yet, it may be advantageous to wait to apply for a type 91 when you renew your master license.
Q: The individual event application asks for a map of the venue. What should I include?
A: ABC requests operating conditions, including adjacent structures, nearest cross streets, and the area where sales and consumption of alcohol will occur. The easiest way to do this is to look up a satellite image in an online map and then mark those locations on the satellite image.
Q: For a non-profit event, the license application can’t be submitted more than 30 days ahead of the event. Does the same standard apply to these caterer’s permits?
A: Yes. The application must be submitted least 3 days before, but no more than 30 days before the individual event occurs.
Q: For the ABC-218 form, are we responsible for obtaining law enforcement approval prior to submitting the application?
A: Yes. Section 5 of Form 218-BMC requires signature and title from the local law enforcement agency with jurisdiction over the event venue.
Q: If we participate in a community event that lasts over two days and we will be pouring beer both days, does that count as 1 event against the 36 total applications we can submit, or does it count as 2 events?
A: It’s 36 event licenses. According to ABC, you should submit a single Form 218-BMC when the same event is two or more consecutive days. If the dates of the event are not consecutive, you need to submit a different form for each date. So, Friday-Sunday events would be one application, but an event that runs every Saturday of the month would require a new application for each Saturday.
Q: Does the type 91 enable a brewery to participate in an event where there is, say, a type 58 selling at the event (in other words, can a brewery participate as a type 91 at an event that is also covered by a type 58)?
A: Yes, a type 58 and type 91 may be at the same event.
Q: Can the premises of the Type 91 and Type 58 overlap at an event or do they have to have distinctly separate premises with no co-mingling?
A: Their premises may not overlap. They each must have their own defined spaces as privileges vary across license types. Separate spaces are thus necessary to prevent conflicts with whatever other permits, authorizations, or licenses are issued for the event.
Q: If a brewery is utilizing its type 91 to do an event, and another brewery is also going to also do the event (the legislation says two can do the same event), can the premises of those two breweries overlap? Or do they have to have individual beer gardens with no co-mingling?
A: No, breweries may not overlap, for the same reasons identified above. Each must have its own defined space that is approved in the catering authorization.
Q: If a brewery is participating in an event with their 91, and the event is adjacent to their existing 23 (or dup 23), can these two be commingled and patrons walk between the 23 and the 91 freely with alcohol during that event?
A: This would not be allowed. The 91 creates a separately licensed premises. Also, a 23 and a 91 may have different privileges, (e.g. a restaurant attached to a 23) and thus enabling wine sales or beer produced by another manufacturer.
Section 25503.45 of the Business and Professions Code allows beer manufacturers and importers to host educational events at on-premise licensed retail locations, such as beer dinners. These events require the presence of a brewery representative to educate consumers. This law came into effect on January 1, 2011, following the passage of AB 2134 (Chesbro), sponsored by the California Craft Brewers Association.
Section 23399.65 of the Business & Professions Code allows breweries to apply to the ABC to temporarily expand their licensed premises to host special events. This law, sponsored by the California Craft Brewers Association (CCBA), enables a licensed beer manufacturer to apply for a Type 77 event permit from the ABC. This permit grants the licensee the temporary privilege of exercising their license privileges on property that is contiguous and adjacent to their licensed premises for special events, allowing for up to four events in a calendar year. To apply for a Type 77 license, a brewery must complete form ABC 239 here.
Q: I am obtaining an Event Permit to extend my licensed premises into our parking lot for an anniversary party. Since I operate a restaurant at my brewery, can I sell beer and wine from other breweries in the parking lot under the Event Permit?
A: You cannot sell beer or wine from other breweries under the Event Permit. This permit only allows you to sell beer brewed under your license within the extended premises. According to Section 23399.65, “A brewery event permit shall authorize the sale of beer produced by the licensee under Section 23357 for consumption on property that is contiguous and adjacent to the licensed premises owned or controlled by the licensee.”
Section 23357 of the Business and Professions Code authorizes all licensed beer manufacturers to sell or serve all beer and wines, regardless of source, to guests during private events held on the licensed beer manufacturer’s premises. This provision allows a type 23 or type 01 licensee to sell or provide beer or wine from other sources at no cost as long as the beer or wine is purchased from a licensed wholesaler.
Guidelines
- The alcoholic beverages sold or served at the premises that are not produced and bottled by the beer manufacturer must be purchased from a licensed wholesaler (a type 17 licensee). Beer or wine cannot be purchased from a self-distributing brewery or winery.
- All alcoholic beverages sold or served must be produced by a licensee authorized to manufacture the product.
- A private party is an event not open to the public. The event cannot be advertised.
- It is advisable for the host or brewery to ensure controlled access to the event so that only guests of the private party can attend.
- A private party may occur in a designated area of the licensed premises. At the same time, the business can remain open to the public. In these situations, it is essential to establish a clear distinction and controlled access points between the private event and the areas accessible to the general public, such as tours, visits, or tasting rooms.
- You may charge a fee to host the private event.
Non-Profit Events
If your brewery is considering participating in a beer festival, there are various legal and business factors you need to address. Before joining an event organized by a non-profit, request a copy of their daily license approved by the Alcoholic Beverage Control (ABC). Keep this document for your records for at least three years.
Q: Who is eligible to donate to a nonprofit organization?
A: Beer manufacturers holding a Type 01, Type 23, or Type 75 license can donate or sell beer to a charitable organization with a nonprofit daily license.
Q: Am I required to donate to a nonprofit organization?
A: You are not obligated to donate to a nonprofit organization. Many breweries donate to nonprofits or events and festivals as a marketing strategy. This allows them to align their brand with a particular charity and participate in more events throughout the year.
You are permitted to sell your beer to a nonprofit. If you sell to a nonprofit with a daily license issued by the Alcoholic Beverage Control (ABC) —such as at a beer festival or other events—there is no requirement for price posting. You can sell your beer at any price you choose.
Q: Can I donate hats and T-shirts to a nonprofit organization holding a beer festival with a daily license?
A: No, you cannot donate those items. While donating beer is allowed, donating branded novelty items such as hats, T-shirts, or glassware is not permitted. However, you can make a cash donation to the nonprofit organization, and they may choose to purchase branded novelty items on their own, provided there are no conditions attached to your donation, and they make an independent decision to buy them. A daily license issued to a nonprofit organization has the same restrictions as a permanent license for a retailer, except for specific allowances in the statute that permit the donation and serving of beer.
Q: Can I pour my beer at a beer festival?
A: If you are a licensed beer manufacturer (types 23, 01, or 75), you can pour beer at a beer festival, provided the event has obtained a nonprofit daily license from the Alcoholic Beverage Control (ABC). You can donate the beer to a nonprofit organization and then serve it on their behalf.
Q: We have a Type 23 license, and I was informed that we cannot sell our beer at a beer festival.
A: As a beer manufacturer, you can donate beer to the festival’s nonprofit organization. However, only the nonprofit is authorized to sell the beer. All revenue generated from the sale of the beer must go directly to the nonprofit.
Q. Are homebrewers allowed to participate in beer festivals?
A. Yes, homebrewers are allowed to provide their beer to a nonprofit organization that holds a daily license. However, they are not permitted to sell their beer to the nonprofit. All homebrewed beer served at an event must be in a clearly designated area with appropriate signage marking it as homebrew. To help consumers easily identify it, the law requires that homebrewed beer be served “within a clearly identified area, including… a physical barrier with a monitored point of entry.”
Q: A nonprofit organization operates a local arts and music theater. They hold a permanent retail license for the venue and sell beer and wine at events. Can we donate beer to them since they are a nonprofit organization?
A: No, you cannot donate beer to them. Although they are a nonprofit organization, they hold a permanent retail license. Beer manufacturers are only permitted to donate beer, with certain conditions, to organizations that have a nonprofit daily license.
Q: Can we donate beer to them if they obtain a daily license for a special event?
A: No. Since they hold a permanent retail license, you cannot donate beer to them, even if they also get a daily license.
Q. What records are required when we donate or bring beer to an event?
A. When donating or selling beer to a nonprofit organization, you should create an invoice for the beer. Keep this invoice with you during the event and file it afterward. Additionally, obtain a copy of the daily license issued by the Alcoholic Beverage Control (ABC) for the nonprofit. You must retain these documents and any other related materials (in either physical or electronic format) for a minimum of three years. According to Section 25752 and Rule 17, licensees who manufacture, import, sell, or distribute alcoholic beverages must keep records at the licensed premises for three years.
Q: A nonprofit organization hosts a fundraising event at Bob’s Bar. Is it permitted to donate beer for the event?
A: Yes, it is permissible, but only if the retailer temporarily surrenders their Alcoholic Beverage Control (ABC) license for the area of the premises where the event will occur. Additionally, the nonprofit must obtain a daily license issued by the Alcoholic Beverage Control (ABC) for the event. It’s important to exercise caution whenever a nonprofit requests beer donations for an event held at a licensed retailer.
Promotions/Advertising
At a Brewery: What are the basic rules for hosting sweepstakes at your brewery? Please refer to this FAQ for guidance on organizing a sweepstakes at your establishment.
At a Retailer: Breweries are not permitted to “sponsor” or host games or contests at retail locations. You can view the ABC Advisory on this topic for more details.
Beer manufacturers can provide licensed retailers with premiums, gifts, or free goods valued at twenty-five cents ($0.25) or less per item. The total value of these items given to a single retail location cannot exceed fifteen dollars ($15) in a calendar year.
Additionally, beer manufacturers may distribute consumer advertising specialties to the general public, provided these items do not exceed three dollars ($3) in original cost to the manufacturer. It is important to note that consumer advertising specialties are intended exclusively for adults of legal drinking age. Items such as coin banks, toys, balloons, magic tricks, miniature bottles or cans, confections, dolls, or any other merchandise that may appeal to minors or underage drinkers are prohibited from being used in conjunction with the promotion of beer.
You cannot require a consumer to purchase an alcoholic beverage to receive a consumer advertising specialty (e.g., buy a pint, get a free keychain).
Beer manufacturers can provide licensed retailers with any premium, gift, or free item valued at twenty-five cents ($0.25) or less per item. However, the total value of these items given to a single retailer’s premises cannot exceed fifteen dollars ($15) in a calendar year. The only exception to this rule is for a limited amount of branded glassware advertising specialties.
As of January 1, 2020, manufacturers may give a maximum of five cases of glassware to each licensed retail location, and they must report this gift to the ABC within 30 days. Retailers may accept a maximum of 10 cases of glassware per year.
It is important to comply with the ABC laws while using social media. The CCBA put together a fact sheet to help you stay on the right side of the law when promoting your business on social media.
Signage
Customized or personalized signs for specific retailers must be sold or rented to those retailers at the current market price. This includes the cost of any customization and personalization.
Interior Signs: Suppliers can provide interior signs advertising the alcoholic beverages they sell to retailers at no charge for use in on-sale or off-sale premises (Section 25611.1 and ABC Rule 106(c)(1)). These interior signs can also be sold or rented to retail licensees. It is important to note that permitted signs must feature prominent brand advertising and remain the supplier’s property unless sold or given to a retail licensee. Interior signs may be placed within windows, visible from outside the premises. They can also include signs attached to walls, fences, or buildings facing an outdoor patio or similar area that is part of the licensed premises.
Exterior Signs: Suppliers are required to sell or rent exterior signs to retail licensees for no less than the current market price (Sections 25503.1(b) and 25611.1(c), along with ABC Rule 106(c)(2)).
Tasting/Sampling
A brewery with a Type 84 permit may offer a maximum of eight ounces of beer tastings per individual per day at a Certified Farmers’ Market in California, provided that the farmers’ market management approves the activity. When setting up your area for this tasting, you must be separated from the rest of the market by either a permanent or temporary barrier and ensure that no consumer leaves the designated tasting area with an open container of beer. It’s also important to note that only one brewery can host a tasting at a farmers’ market at a time.
On-Premise Accounts:
Q: Can I provide beer samples to customers at a bar or restaurant (on-premises location)?
A: According to Section 25503.55, a beer manufacturer can offer tastings at an on-premise retail license as part of an educational instructional event where you discuss the taste, styles, and other details of the beer. Here are the key guidelines:
- Samples cannot exceed 8 ounces per person per day. You can offer them in various sizes, such as two 4-ounce servings, one 8-ounce sample, or four 2-ounce samples.
- While you may provide a variety of brands, the total sample quantity for each person must remain at 8 ounces.
- Samples must be served in a cup or glass and cannot be served in the original container.
- Only employees of the on-premise retail license can serve the samples to consumers.
- Advertising for the event is restricted to interior signs within the licensed retail establishment where the event occurs.
- The tasting event must not last longer than one hour.
- The retailer is responsible for paying for the sampled product, which must come from their inventory. You may not bring your product for sampling unless the retailer has purchased it at your posted prices.
- You may conduct no more than six (6) tasting events at a single retailer per year.
- You are required to maintain records of each tasting event. These records should include the date of the tasting, the address of the retail location, the brands sampled, and the quantity served.
Note: These provisions do not apply to off-premise retailers.
Q: Can I provide samples to a licensed retailer?
A: According to Title 4, California Code of Regulations (CCR) 52 in the ABC Act, “samples of beer may be given to licensed retailers or their employees or agents.” However, samples can only be provided to licensees who have not previously purchased that specific product. The purpose of these samples is to allow them to assess the grade, type, and quality of alcoholic beverages.
The quantity of each sample must not exceed one bottle or can and must be opened on the licensee’s premises. You are not allowed to leave behind unopened samples.
Additionally, you are required to maintain a record of all samples that you distribute. These records must be completed within seven calendar days of removing the samples from stock.
The record should include:
– The brand, type of alcoholic beverage, and size of the sample package
– The name of the salesperson who removed the sample package and the date of removal
– The name of the licensee receiving the sample, along with the brand, type of alcoholic beverage, and quantity provided, as well as the date the sample was given
These records must be retained for three years.
Assembly Bill 605 established a new “Instructional Tasting License” (Type 86) for off-sale retailers, allowing them to host events where consumers can sample alcoholic beverages. To qualify for this license, retailers must meet certain criteria. The license has specific application procedures and fees associated with it. While the license is held by the retailer, suppliers may also take part in these events, but they must adhere to strict guidelines. It is important to note that suppliers are not allowed to financially support retailers in obtaining this license, and all activities must comply with California’s tied-house laws.
