California Craft Brewers Association
California Craft Beer Brewers Collaboration

ABC Q&A Database

For answers to common ABC questions please use the indexes below. These indexes are categorized by keywords. For example, questions about a beer dinner would be under “D” for dinner and/or “B” for beer.

If you have specific questions on trade practice or other ABC compliance issues not addressed below, please email abc@californiacraftbeer.com to access your complimentary consulting service included in CCBA membership.

To view the ABC California Business and Profession Code click here. To view the ABC ACT click here.

A

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  • ADA Website Compliance Guidance
    • Resources for adhering to The Americans with Disabilities Act (ADA) website compatibility compliance
  • Alcohol Content
    • Definition of alcohol beverage click here
    • Labeling 25204 (b) – “Any beer container sold within this state that contains more than 5.7 percent alcohol by volume shall include a statement of alcoholic content.”

B

  • Beer Manufacturers: The ABC requires the brewing of beer in order to renew and maintain a beer manufacturers license. If you have a beer manufacturers license, you have to therefore meet the definition of “beer manufacturer” as defined in 23012 which states “….is engaged in the commercial manufacture of beer.”
  • Beer Brand Registration: Thanks to the advocacy of the CCBA, breweries no longer need to go through a label “approval” process but they do need to register.

 

  • Beer Dinner:  The “Beer Dinner Bill,” sponsored by CCBA, went into law Jan 1, 2011. This law allows both beer manufacturers and beer importers the privilege of conducting “Beer Maker Dinners” – instructional events for consumers held at a licensed on-sale retail premises. These events provide the opportunity for tastings and descriptions of products and this law allows the organizer to communicate the date, time and location of these events to their customers.
    • Fact Sheet and FAQ: Guidelines for On-Premise Educational Events
      • Q: I’m doing a pint night. Doesn’t that fall under this new law so I can therefore advertise the event?
      • A: You must have a representative at the retail account during the event to “instruct consumers.” The brewery rep may not provide sampling (such as under the on-premise sampling provision). If you fit into all of the provisions of the new law, then yes, you may advertise the event within the stated restrictions.
      • Q: Do I have to serve food or a “dinner?”
      • A: There is nothing in the new law that states you must serve food of any kind.
      • Q: Can I post these events using social media?
      • A:Yes, again as long as it falls under the advertising restrictions. You cannot promote the retailer and “the advertisement (shall) not contain the retail price of the beers.” Also, the statute states that you cannot provide “laudatory references to the retailer.”

C

  • Credit Laws
    • A supplier cannot extend credit if the retailer has not paid within 30 days. Extending credit beyond 30 days is considered providing something of value to the retailer. What you can do is require that the retailer pay for all deliveries COD if they have a balance that is over 30 days. Details here.
  • Collaboration Beers
    • Q:  We would like to brew a collaboration beer and split the costs of the ingredients with another local brewery. Can we legally share in the material costs and split the profits with the other brewery? Who would submit the price posting for the beer? 
    • A: ABC law dictates that the manufacturing brewery is the only brewery able to sell the beer through their tasting room, self-distribute or sell through a licensed wholesaler. This brewery most also pay taxes and post prices for the beer. Collaborating breweries may not split sales revenue from the beer. You can, however, brew two separate batches, one at each brewery. Each brewery would be responsible for price posting and brand registration for the beer manufactured at their brewery.
    • Q: We’ve been asked by a local restaurant (retailer) to brew a beer for them. Do we need to enter into a contract, file a DBA and/or proceed as usual with brand registration and price posting? Also, can we co-brand our name on the label along with the retailer?
    • A: A beer manufacturer may legally manufacture a private label beer for a retailer.  The beer manufacturer must charge the retailer a base price (fair market value) for the manufacturing of the beer under contract and for the cost of label development. The beer may only be sold to that retailer and, once sold, the retailer owns that beer (label and brand).
      • You must enter into a contract with the retailer that states that the retailer owns the beer but the manufacturer is responsible for the filing for ABC brand registration and price posting at the negotiated price.
      • You only need to file a DBA if the retailer is looking for the brand to be brewed under a fictitious business name. If this is the case, you need to file the fictitious business name within your county for the beer brand that is being created. The label will need to clearly specify the type of beer that’s in the container and, in smaller print, must list your brewery as the manufacturer of the beer.
      • The beer manufacturer cannot share in the branding or profits from the sale of the beer with the retailer.  The shared success (or lack thereof) of the beer would likely be deemed a shared interest, even if indirect, which is also explicitly prohibited.
  • Cider Production by a Type 01
    • In 2013, Anheuser Busch sponsored AB 779 (Bocanegra) to amend B&P code section 23357 to allow a type 01 beer manufactures license to produce cider and perry. Prior to this bill, beer manufactures licensees could not make any other alcoholic beverages other than beer. AB wanted to produce cider products at their Los Angeles brewery on their existing tanks without having to create a separate type 02 license. This amendment to B&P code section 23357 was specific in only allowing the type 01 to manufacturer cider and perry. It does not allow for the on-premise or off-premise retail privileges of cider or perry.
  • Craft Distiller Shared Tasting Room Space:
    • AB 1890, effective January 1, 2019, further amends the Alcoholic Beverage Control Act, Section 25607 of the Business and Professions Code, to permit Type 74 (craft distillers), Type 02 (winegrowers), and Type 23 (small beer manufacturers), in any combination, to share a common area in which the consumption of alcoholic beverages is permitted. To learn more please review the AB 1890 Fact Sheet.

F

  • Farmers Market:
    • A brewery with a type 84 permit may provide a maximum eight ounce beer tasting per individual per day at a Certified Farmers’ Market in California as long as the activity is approved by the farmers’ market management. When setting up your space for this instructional tasting, you need to be separated from the market by a permanent OR temporary barrier and ensure no consumer leaves the separated instructional tasting area with an open container of beer. It’s also important to note that only one brewery at a time can host a tasting at a farmers’ market.
  • Free goods:
    • Beer manufacturers may provide to a licensed retailer any premium, gift, or free good valued at twenty-five cents ($0.25) or less per item. No more than fifteen dollars ($15) in the aggregate for all those items may be given to a single retailer premises per calendar year.A beer manufacturer may give consumer advertising specialties to the general public that do not exceed three dollars ($3) per unit original cost to the beer manufacturer who purchased it. Consumer advertising specialties furnished by a beer manufacturer are intended only for adults of legal drinking age. Coin banks, toys, balloons, magic tricks, miniature bottles or cans, confections, dolls, or other items that appeal to minors or underage drinkers may not be used in connection with the merchandising of beer.

G

  • Growler Clarification
    • You are not obligated to fill a growler from another brewery but are allowed to do so if all information from the other brewery is removed and/or obscured. Some breweries choose not to fill growlers from other sources for many reasons, although many consumers do not understand why a brewery might make this decision.
    • It’s important to note you must affix or attach a label of your own to the growler that you’ve filled. As a reminder, the new Brand Registration process has replaced the label approval process with the ABC.
  • Giveaways
    • “Beer manufacturers may provide to a licensed retailer any premium, gift, or free good valued at twenty-five cents ($0.25) or less per item. No more than fifteen dollars ($15) in the aggregate for all those items may be given to a single retailer premises per calendar year, with the sole exception of a limited amount of branded glassware advertising specialties. As of Jan. 1, 2020, manufacturers may provide a maximum of five cases of glassware, per licensed retail location, and must report this gift to the ABC within 30 days. Retailers may only accept a maximum of 10 cases per year. 
    • To learn more about glassware giveaways, see the CCBA’s Factsheet on AB 1133 and the “ABC Industry Advisory: Glassware Law”
    • A beer manufacturer may give consumer advertising specialties to the general public that do not exceed three dollars ($3) per unit original cost to the beer manufacturer who purchased it. Consumer advertising specialties furnished by a beer manufacturer are intended only for adults of legal drinking age. Coin banks, toys, balloons, magic tricks, miniature bottles or cans, confections, dolls, or other items that appeal to minors or underage drinkers may not be used in connection with the merchandising of beer. You may give away items within and on a licensed retail account.
    • You may not require the purchase of an alcoholic beverage (buy a pint get a free keychain).
    • There is no limit on what a brewer can provide or give to a licensed wholesaler.

H

  • Home Brewing:
    • Code: 23356.2
    • Homebrew club meetings at a licensed brewery: CCBA supported California Homebrewers Association sponsored Assembly Bill 2172 (Jones) in 2016 that permits individuals to bring beer they made at home into an ABC licensed club, restaurant or bar, brewpub, beer or small beer manufacturer premises but only in connection with a home brewers club meeting or home brewed beer competition. Club members may also exchange and consume home brewed beer at a club meeting or competition. Patrons who are not club members shall not consume any home brewed beer.

I

K

  • Keg Deposits
    • Q: If a competitor consistently fails to charge a keg deposit when they deliver beer to retailers, can that be considered an inducement? How should I respond when the retailer tells me I shouldn’t charge a keg deposit because XYZ brewery doesn’t charge?
    • A: You are not required to charge a deposit. However, if a brewery does not charge a deposit, they must not charge a deposit to ALL retailer accounts. If a deposit is charged you must include it as a line item on the invoice. Not charging a deposit in not considered an inducement, as long as the policy is for consistent for all accounts. Not charging a specific retailer(s) a deposit while charging other retailers a deposit would be considered providing something of value and would be a violation. When a retailer says you shouldn’t charge a deposit, that is their prerogative and you will need to make a choice as to whether or not you want to sell kegs to all retailers without a deposit. NOTE: Keg deposits HAVE to be noted on your price posting schedules if you are charging them. If they are NOT noted on your price posting schedules then you CAN’T legally charge them.
  • Keg Registration for Direct-to-Consumer Keg Sales: Section 25659.5.
    • (a) Retail licensees selling keg beer for consumption off licensed premises shall place an identification tag on all kegs of beer at the time of sale and shall require the signing of a receipt for the keg of beer by the purchaser in order to allow kegs to be traced if the contents are used in violation of this article. The keg identification shall be in the form of a numbered label prescribed and supplied by the department that identifies the seller. The receipt shall be on a form prescribed and supplied by the department and shall include the name and address of the purchaser and the purchaser’s driver’s license number or equivalent form of identification number. A retailer shall not return any deposit upon the return of any keg that does not have the identification label required pursuant to subdivision (a).(b) Any licensee selling keg beer for off premise consumption who fails to require the signing of a receipt at the time of sale and fails to place a numbered identification label on the keg shall be subject to disciplinary action pursuant to this division. The licensee shall retain a copy of the receipt, which shall be retained on the licensed premise for a period of six months. The receipt records shall be available for inspection and copying by the department or other authorized law enforcement agency.(c) Possession of a keg containing beer with knowledge that the keg is not identified as required by subdivision (a) is a misdemeanor.(d) Any purchaser of keg beer who knowingly provides false information as required by subdivision (a) is guilty of a misdemeanor.(e) The identification label required pursuant to subdivision (a) shall be constructed of material and made attachable in such a manner as to make the label easily removable for the purpose of cleaning and reusing the keg by a beer manufacturer.(f) The department is authorized to charge a fee not to exceed the actual cost of supplying receipt forms and identification labels required pursuant to subdivision (a). Fees collected pursuant to this subdivision shall be deposited in the Alcohol Beverage Control Fund.(g) As used in this section, “keg” means any brewery-sealed, individual container of beer having a liquid capacity of six gallons or more

L

  • Labeling:
    • Label requirements are the same for all containers; bottles, crowlers, growlers and cans.
    • Code: 25200-25206
  • ABC Licenses:
    • Common ABC Licenses and Associated Privileges 
    • CCBA’s Fact Sheet on AB 1825 which addresses rules regarding overlapping manufacturing licenses for the purposes of production and storage.
    • FACT SHEET on SB 1283 which addresses type 75 license privileges.
    • For more information on Duplicate Licenses, please visit “D” for “Duplicate License” 
      • Q: What is the limit on number of licenses a licensee can own in California? Is this differentiated between retail and non retail?
      • A: You are allowed unlimited type 23 licenses. Any of those may exercise retail privileges.
        • As the owner of a type 23, you may also own up to six on-premise retail licenses or type 23 duplicate licenses.
        • No more than two duplicates may have a bona fide eating establishment (which allows selling other beer & wine in addition your own beers).
      • Q: I have a Type 23 and a Type 75 license. My brewery will surpass 60,000 bbls in annual production next year. Will I need to get a Type 01 license and will I be able to keep my Type 75?
      • A: Yes, and yes. Any beer manufacturer that produces more than 60,000 bbls annually must get a Type 01 license from the ABC.
      • Q: Can a Type 23 sell beer to a Type 75 establishment?
      • A: No. The type 75 is a very odd license with many restrictions. This license was a special-interest bill sponsored by a restaurant group back in the mid-90’s. That restaurant group has since gone out of business. The CCBA opposed the legislation at the time, but the bill passed. The type 75 license requires that all alcohol beverages other than what is brewed on-site be purchased only from a “licensed wholesaler.” A type 23 is a beer manufacturers license with the privileges to self-distribute, but it is not a licensed wholesaler. Keep in mind that licensed wholesalers (type 17’s) do not have any retail privileges. A type 23 can sell to other type 23’s that are allowed (with a bona fide eating place) to sell other beer and wine.

O

P

  • Price Posting (Wholesale Pricing):
    • A brewery only needs to price post for counties where their brands are sold. If the brewery uses a distributor, they only need to post for counties where the distributor has a physical location. The distributor must then post for each county in which you have given them territorial authority.
    • Q:  Do we need to file a beer brand registration form (ABC412) for beers that will never leave the brewery taproom (that is, beers that will never go in a growler or be sold in a keg to an offsite account)? Do we need to fill out a price posting form (ABC701) for beers that will never be sold outside the brewery taproom?
    • A: The answer to both questions is no. Brand registration (ie. California label “approval”) is only required if the brewery is selling sealed containers of the beer; if it is only sold on draft in the tasting room, no additional paperwork is required. That said, if you are going to bottle or can the beer and sell that from the tasting room, then yes – the brand registration would be required. So long as the brewery is selling only to end-consumers, no price posting is required (but if you start self-distributing (even from you own dock) to accounts or sell to a distributor, price posting will be required).
  • Production 

R

  • Renting the Brewery
    • Q: We had someone inquire about renting out our entire tasting room for a day for a wedding (we hold a type 23 license). Is there any law that would restrict us from doing something like this? 
    • A: No there is not. In fact if it meets the specifics of a “private event,” you may also serve sparkling wine, wine and beer from other brewers.

S

  • Self Distribution:
    • Code: 23388
    • Q: I am a self-distributing brewery. Are there any limitations on when I can deliver to a retail account?
    • A: Yes. You can only deliver to a retail account between 3:00 am and 8:00 pm Monday-Saturday. No deliveries are allowed to retailers on Sunday. A delivery is when the truck reaches the retailer and makes the transaction – so you can have delivery trucks “on the road” at any time. As long as the truck arrives to the retailer before 8:00 pm, you can take as long as you want to unload and make the actual delivery. Additionally, there are no restrictions on in-store merchandising and stocking. This is allowed 24/7, including on Sunday.
  • Sales of Beer by Beer Manufacturers:
  • Sharing Tasting Room Space:
    • AB 977, effective January 1,2018  amends the Alcoholic Beverage Control Act, Section 25607 of the Business and Professions Code to allow Type 02 (winegrowers), Type 01 (beer manufacturers) and Type 23 (small beer manufacturers), to share a common area in which the consumption of beer and wine is permitted. To learn more please review the AB 977 Fact Sheet.
    • AB 1890, effective January 1, 2019, further amends the Alcoholic Beverage Control Act, Section 25607 of the Business and Professions Code, to permit Type 74 (craft distillers), Type 02 (winegrowers), and Type 23 (small beer manufacturers), in any combination, to share a common area in which the consumption of alcoholic beverages is permitted. To learn more please review the AB 1890 Fact Sheet.
  • Social Media:
  • Signage at Retail
    • Signs that are customized or personalized for a specific retailer must be sold or rented to that retailer at current market price, including the cost of customization and personalization.
      • Interior Signs: A supplier may furnish, at no charge, interior signs advertising alcoholic beverages sold by that supplier to a retailer for use within on-sale or off-sale premises (Business and Professions Code Section 25611.1 and ABC Rule 106(c)(1)). Interior signs may also be sold or rented to retail licensees. Permitted signs must consist of conspicuous brand advertising and interior signs remain the property of a supplier unless sold or given to a retail licensee. Interior signs may be placed inside the window(s) visible from outside the premises and can include signs that are attached to walls, fences or buildings and which face an outdoor patio or similar area that is part of the licensed premises.
      • Exterior Signs: Suppliers must sell or rent exterior signs to retail licensees at no less than current market price (Business and Professions Code Sections 25503.1(b) and 25611.1(c), and ABC Rule 106(c)(2)).

T

  • Tasting Room Shared Space Exemption:
    • AB 977, effective January 1,2018  amends the Alcoholic Beverage Control Act, Section 25607 of the Business and Professions Code to allow Type 02 (winegrowers), Type 01 (beer manufacturers) and Type 23 (small beer manufacturers), to share a common area in which the consumption of beer and wine is permitted. To learn more please review the AB 977 Fact Sheet.
    • AB 1890, effective January 1, 2019, further amends the Alcoholic Beverage Control Act, Section 25607 of the Business and Professions Code, to permit Type 74 (craft distillers), Type 02 (winegrowers), and Type 23 (small beer manufacturers), in any combination, to share a common area in which the consumption of alcoholic beverages is permitted. To learn more please review the AB 1890 Fact Sheet.
  • Trade Practices in California
  • Type 77 License:
    • Extended premise special events (AB 776) 
      To apply for a Type 77 license, a brewery would fill out form ABC- 239.
    • Q: I am getting an Event Permit to extend my licensed premise into our parking lot to hold an anniversary party. Since I have a restaurant at my brewery, I sell beer from other breweries and wine at our brewery. Can I serve wine in the parking lot under the Event Permit? 
    • A: No. The Event Permit only allows you to sell beer brewed under your license within the extended premise. Code section 23399.65 states “A brewery event permit shall authorize the sale of beer produced by the licensee pursuant to Section 23357 for consumption on property contiguous and adjacent to the licensed premises owned or under the control of the licensee.”
  • Type 75 License:
    • FACT SHEET on SB 1283 addressing type 75 restrictions and privileges, including offsite beer sales and growler fills.
      • Q: Can a Type 23 sell beer to a Type 75 establishment?
      • A: No. The type 75 is a very odd license with many restrictions. This license was a special-interest bill sponsored by a restaurant group back in the mid-90’s. That restaurant group has since gone out of business. The CCBA opposed the legislation at the time, but the bill passed. The type 75 license requires that all alcohol beverages other than what is brewed on-site be purchased only from a “licensed wholesaler.” A type 23 is a beer manufacturers license with the privileges to self-distribute, but it is not a licensed wholesaler. Keep in mind that licensed wholesalers (type 17’s) do not have any retail privileges. A type 23 can sell to other type 23s that are allowed (with a bona fide eating place) to sell other beer and wine.

W

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