In-State and Craft Distilling in Control Jurisdictions-2

Alabama Alcoholic Beverage Control Board

Email:  Neil Graff, Chief Operating Office
(334) 260-5417

Bailment

• All suppliers are treated the same.

Margins

• Same for all.

Listing

• Same for all products but in-state generally listed (in limited number of stores). No guarantee of listing.

Delisting

• Products can and have been delisted due to poor sales but consideration applied where possible.

Initial Distribution

• Limited distribution based on locations near the distillery and targeted areas.

Separate Shelf Location

• No

Distillery Store Sales

• Yes to consumers but limited to 2.25 liters per customer per day.

Gallonage Threshold

• No

Direct Delivery to Licensees

• No

Idaho State Liquor Division

(208) 947-9400

Website:  Manufacturer/Distillery License Application
Email:  Manufacturer License Team

Website:  Idaho Distillers Association
Email: info@distilledinidaho.com
 

Bailment    

• All products are treated the same.

Margins    

• All products are treated the same.

Listing    

• All products are treated the same.

Delisting

• All products are treated the same.

Initial Distribution

• Initial distribution treated the same for all products based on ISLD Retail Allocation Group Allocation List with additional consideration given for regional demographics.

Separate Shelf Location

• Separate Idaho/Regional (and adjacent states “local product”) display.

Distillery Store Sales

• The distillery can obtain a "contract store license" and sell directly to consumers (virtual transfer from distillery to store). With additional restaurants, licenses can sell on-premises.

Gallonage Threshold  

• No

Direct Delivery to Licensees    

• No

Iowa Alcoholic Beverages Division

Email:  Nicole Scebold, Product Manager
(515) 281-7416

Bailment

• All products are bailment

Margins

• All products treated the same

Listing

• Same process for all products but in-state products generally listed.

Delisting

• Not yet but being considered.

Initial Distribution

• NA. Private retailers

Separate Shelf Location

• NA. Private retailers

Distillery Store Sales

• Can sell to consumers direct from distillery storefront with a native distillery license.

Gallonage Threshold

• Volume of distillery store sales allowed is higher if production is less than 100,000 proof gallons annually (9 liters per person per day if < 100k; 1.5 liters per person per day if > 100k).

Direct Delivery to Licensees

• No

Maine Liquor & Lottery Commission

Email:  Tracy Willett, Manager of Spirit Operations
(207) 287-9759

Bailment

• All products are bailment.

Margins

• All products treated the same.

Listing

• Same process for all products but in-state products generally listed.

Delisting

• Not yet, but being considered.

Initial Distribution

• NA. Private retailers

Separate Shelf Location

• NA. Private retailers

Distillery Store Sales

• Can sell to consumers direct from distillery storefront with a native distillery license.

GallonageThreshold

• Volume of distillery store sales allowed is higher if production is less than 100,000 proof gallons annually (9 liters per person per day if < 100k; 1.5 liters per person per day if > 100k).

Direct Delivery to Licensees

• No

Montgomery County, MD

Email:  Kathie Durbin, Director
(240) 777-1900

Maryland Distillers Guild
Jamie Windon, President
info@marylandspirits.org
(443) 333-9181

Bailment

• NA. Montgomery County does not have a bailment warehouse

Margins

• Same for all products

Listing

• Small Maryland made distilleries can opt to have a LOC tag allowing them to self-distribute within the ABS stores.

Delisting

• Not to date.

Initial Distribution

• All stores.

Separate Shelf Location

• Yes. A Maryland Made section at the front of our 27 stores. Maryland Made products are also integrated on shelves, when possible, for double facings. Shelf tags with a Maryland Made logo are placed by items for attention.

Distillery StoreSales*

• A Class 9 license holder can sell up to 3 bottles to consumers from the distillery store or with a Class B-BWL, Class D-BWL or Class BD-BWL license can also sell for on premises consumption on-site

Gallonage Threshold

• Not Applicable

Direct Delivery to Licensees

• Yes, can sell and deliver to both on premises licensees and county stores or can sell via warehouse.

Michigan Liquor Control Commission

Email:  Kerry Krone, Business Manager
(517) 763-0057

Bailment

• Same for all products but can sell from distillery without bailment.

Margins

• Same for all products

Listing

• Same for all products.

Delisting

• Same for all products. Must sell minimum quota based on retail price.

Initial Distribution

• NA. Private retailers

Separate Shelf Location

• NA. Private retailers

Distillery Store Sales

• Yes via onsite store or restaurant.

Gallonage Threshold

• Small distiller (produce or manufacture) license allows for distillery sales. Must produce less than 60,000 gallons.

Direct Delivery to Licensees

• No

Other

• Separate section in quarterly price guide in addition to category section.

Mississippi Department of Revenue

Email:  Kristen Doty, ABC Purchasing Manager
(601) 856-1318

Bailment

• Same for all products

Margins

• Same

Listing

• Limited SKUs may be listed (not automatic) without making the regular sales dollar-based quota.

Delisting

• Same for all products.

Initial Distribution

• NA. Private retailers

Separate Shelf Location

• NA. Private retailers

Distillery Store Sales

• Yes

Gallonage Threshold

• No

Direct Delivery to Licensees

• No

Montana Department of Revenue

Email:  Lisa Patzer, Purchasing Agent
(406) 444-4003

Montana Distillers Guild
Email:  Jim Harris, President
(406) 581-7777

Bailment

• All products treated the same.

Margins

• Mark up rates and taxes based on size of company not distillery location.

Listing

• No, same case sales criteria required as out of state products.

Delisting

• Same criteria for all.

Initial Distribution

• Same for all products.

Separate Shelf Location

• NA. Private retailers.

Distillery Store Sales

• Sales of 1.75L per day per consumer for off premises consumption and 2 ounces for on premises tasting consumption per day per consumer.

Gallonage Threshold

• See markup and taxes under “Margins” section. Production of >25,000 gallons results in loss of tasting room privileges and distillery storeoff premises sales.

Direct Delivery to Licensees

• Can direct deliver (not invoice) to agency liquor stores. This also applies to any other craft distiller (out of state) producing <25,000 gallons.

New Hampshire Liquor Commission

Email:  Mark Roy, Spirit Buyer
(603) 230-7007

NH Craft Spirits Organization
Email:  Brian Ferguson
(603) 659-2949

Bailment

• NH craft product carried in our stores is stored in state owned warehouse with no fee. All other products are bailment at DHL Supply Chain warehouse for a fee. To be made available to On Premises product must be in DHL

Margins

• Same except for Distillery Shop sales where the state does not take any margin (other than sales tax)

Listing

• Same for all products

Delisting

• Same for all products

Initial Distribution

• Craft does not go into full test market distribution but is treated as a one-time-buy with a limited number of stores

Separate Shelf Location

• Spirits are located in respective sections.
• Wine is located in a “NH Wines” section.

Distillery StoreSales

• Yes

Gallonage Threshold

• Yes (legislation underway to properly define)

Direct Delivery to Licensees

• No. Direct ship permits not available to in-state manufacturers.

North Carolina ABC Commission

Email:  Greg Stallings, Director of Operations
(919) 948-7903

Distillers Association of North Carolina
Email:  Peter Barger
(704) 978-7175

Bailment

• Same for all products.

Margins

• Same for all products.

Listing

• Automatic listing for NC Distillers (single size only to start).

Delisting

• Not enforced at this time for NC Distillers.

Initial Distribution

• Same for all products.

Separate Shelf Location

• Yes. “Made in NC” section.

Distillery Store Sales

• Consumers can purchase unlimited bottles per person per year, but only in conjunction with a distillery tour.

Gallonage Threshold

• No

Direct Delivery to Licensees

• No

Ohio Division of Liquor Control

Email:  Jennifer Richardson, Merchandising Manager
(614) 728-4784

Ohio Distillers Guild
Email:  Greg Lehman, Watershed Distillery

Bailment

• All products are bailment for Agency sale. Ohio distilleries have the option to list a product for distillery only sale.

Margins

• Yes. There is an in-state grown fruit exception (see other)

Listing

• Same listing requirements for all products if sold by Agency stores.

Delisting

• No in-state products delisted to date.

Initial Distribution

• Limited to local area until sales warrant expansion.

Separate Shelf Location

• Product located in category but generally grouped together on top shelf.

Distillery Store Sales

• Yes. Sales can occur to consumers only via either retail shop or distillery restaurant.

Gallonage Threshold

• Micro Distillery gallonage capped at 100k gallons allowing them to have full-service restaurant and retail shop.

Direct Delivery to Licensees

• No.

Other

• Products distilled from Ohio grown fruit (does not include grain) have a 10% state margin applied.

Oregon Liquor Control Commission

Email:  Nikki Leslie, Distribution & Purchasing Director
(503) 872-5024

Oregon Distillers Guild
Email:  Ted Pappas, Big Bottom Distilling
(503) 872-5024

Bailment

• All products are bailment

Margins

• All products have the same margin applied

Listing

• In-State products are automatically listed up to three products. The distiller can have more than three products when the listed products have sufficient sales.

Delisting

• If in-state product doesn’t sell sufficiently via agents product status changed to SLO or Distillery Shop only

Initial Distribution

• In-state distillers have to promote to agents same as all other products

Separate Shelf Location

• Depending on the stores, most stores have an Oregon products section

Distillery Store Sales

• Consumer sales only. All sales have to be reported to the OLCC and margin paid

Gallonage Threshold

• No

Direct Delivery to Licensees

• No

Pennsylvania Liquor Control Board

Email:  Deborah Rivera, Chief Merchandising Officer
(717) 787-8652

Licensing

• PA makes no distinction between in-state and out-of-state distilleries for licensing purposes, rather limited distillery licenses are granted to those producing up to 100,000 gallons per year (regardless of home state) and distillery licenses are granted to those distilling 100,000 gallons or more per year.

Bailment

• A small number of PA producers are in the bailment program, but most do not have sales volume warranting bailment.

Margins

• Vary by product as costs and retail prices are negotiated for each item, but PA distillers must offer a minimum 30% margin.

Listing

• In-state distilleries may select up to 10 products to place in up to 10 Fine Wine & Good Spirits retail stores of their choosingand for sale online at FWGS.com. Subject to PLCB approval.

Delisting

• Each distillery must sell at least one case of spirits per store, per month to continue participating in the in-store program.

Initial Distribution

• 10 stores of the distillery's choosing

Separate Shelf Location

• Yes, “Made in Pennsylvania” sections feature select local products, and Pennsylvania products are also merchandised within the appropriate category section.

Distillery Store Sales

• Limited distilleries can sell direct to consumers and licensees without sending any margin to the state (other than taxes).

Gallonage Threshold

• Limited distilleries may produce up to 100,000 gallons per year

Direct Delivery to Licensees

• Yes

Utah Department of Alcoholic Beverage Control

Email:  Chris Brunelli, Purchasing Agent
(801) 977-6800

Distillers Guild of Utah
Email:  Marc Christensen
(801) 883-9837

Bailment

• All products treated the same.

Margins

• Reduced mark up rates 47% vs 84% for craft brands from a small distillery (distillerymust apply for this reduced rate

Listing

• Same for all products

Delisting

• Yes,performance based

Initial Distribution

• Limited number of stores (distiller can request specific locations)

Separate Shelf Location

• No, products kept within category. SPA floor stock for one fiscal period

Distillery Store Sales

• Yes with type 5 agency license.

Gallonage Threshold

• Smalldistillery must produce less than 30,000 proof gallons in a calendar year

Direct Delivery to Licensees

• No

Vermont Department of Liquor Control

Email:  Tonia Pryce, Liquor Purchasing Coordinator
(802) 828-2171

Distilled Spirits Council of Vermont
Email:  Jeremy Elliott
(802) 309-3077

Bailment

• In-State products, with the exception of barrel select and special labels, are purchased by the state, all other products are bailment.

Margins

• Same for all products

Listing

• Must go through listing procedure but generally all in-state products are accepted (one size only)

Delisting

• Same dollar sales value requirements as other products

Initial Distribution

• Top 20 agents after approval (same as other products)

Separate Shelf Location

• Yes

Distillery Store Sales

• To consumers only. Requires a manufacturers license anda 4th class license (off premises license only available to VT manufacturers).

Gallonage Threshold

• No

Direct Delivery to Licensees

• No

Virginia Alcoholic Beverage Control Authority

Email:  John Shiffer, Director of Marketing
(804) 213-4522

Virginia Distillers Association
Email:  Amy Ciarametaro, Executive Director
(757) 55-5829

Bailment

• All products treated the same

Margins

• Same for all products

Listing

• Same for all products but in-state generally listed (in limited number of stores). No guarantee of listing.

Delisting

• Sales and sales/store thresholds by category and price tier. Virginiaproductswillbeheldto50%of relevant category/price tier criteria.

Initial Distribution

• Limited based on past performance. This is also done with other non-state spirits.

Separate Shelf Location

• “Virginia Products” section in select stores, butalso crossmerchandisedincategorysection.

Distillery Store Sales

• Yes. Any producer may become a distillery store. The only qualifications to get a distillery store privilege is that you have a distillery license in Virginia and enter into a contract with Virginia ABC to establish a state store at the distillery location.

Gallonage Threshold

• No threshold for privileges. License fee based on distillery output size.

Direct Delivery to Licensees

• Distillery stores may sell directly to mixed beverage licensees and they may deliver to the licensee.Distillery stores (since they are an agent of Virginia ABC) sell to restaurant licensees at the same price as is found at a traditional ABC store.Virginia ABC pays the distillery store an 8% commission on all sales from their location

West Virginia ABC Administration

Email:  Kim Canterbury, Spirits, Wine and Order Entry Manager
(304) 356-5562

Bailment

• Yes, distillery may limit product inventory which is considered and taxed as bailment inventory.

Margins

• Same for all except Mini Distillers and Micro Distillers (see gallonage threshold).

Listing

• Automatically granted.

Delisting

• Yes.

Initial Distribution

• NA. Private licensed retail liquor outlets.

Separate shelf Location

• NA. Private licensed retail liquor outlets.

Distillery Store Sales

• Yes, with maximum sales to a consumer of 10 gallons. On Premises licensees cannot purchase from the distillery.

Gallonage Threshold

• Micro Distillery -75% of product must be produced in-state with no more then 10,000 gallons per year. Mini Distillery –75% of product must be produced in-state (25% of raw product must be produced on-premises) with no more then 50,000 gallons per year. State markup 5% for distillery sales to general public vs 32% for all other retail liquor outlets.

Direct Delivery to Licensees

• No. State will work with licensedretail liquor outlets to make product available to on premises licensees.

Wyoming Department of Revenue

Email:  Angela Lebeda, Purchasing Manager
(307) 777-6451

Wyoming Distiller Guild
Email:  wyomingdistillersguild@gmail.com
(307) 472-1275

Bailment

• NA. Wyoming is not a bailment state

Margins

• Same for all products: 17.6% markup to the retailer. (W.S. 12-2-303(a))

Listing

• All products must present for listing. In many cases SLO activity recommended prior to listing.

Delisting

• All products are treated the same and must maintain sales quota to retain listing.

Initial Distribution

• Spirits are distributed by the Wyoming Liquor Division. (W.S. 12-301(a))

Separate Shelf Location

• NA Private retailers

Distillery Store Sales

• A distillery can apply for not more than two "satellite" licenses. This allows the distillery to ship product to the state warehouse and then buy back as a retailer/restaurant the to sell to consumers. (W.S. 12-2-203)

Gallonage Threshold

• No

Direct Delivery to Licensees

• No, except per state law to a distillery satellite on the same premises as the distillery. (W.S. 12-2-203(g)(i))