WASHINGTON WINE INSTITUTE WASHINGTON WINEGROWERS

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1 WASHINGTON WINE INSTITUTE WASHINGTON WINEGROWERS AUGUST 1, 2017 ASHLEY HONEYWELL - CUSTOMER SERVICE SUPERVISOR DALTON MILLS - LIQUOR LICENSING SPECIALIST JENNIFER DZUBAY COMMANDER ENFORCEMENT RICH MANOLI NON-RETAIL ENFORCEMENT OFFICER

2 WINERY STATISTICS 925 Wineries 218 Tasting rooms 21 Bonded Wine Warehouses 10 Growers licenses 22 Winery Warehouses An additional 2 tasting rooms per production facility. Effective 7/23/17

3 LIQUOR LICENSE TIMELINE TRENDS (RETAIL & NON-RETAIL) 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Retail Non-Retail RETAIL - % completed in 60 days or less NON-RETAIL - % completed in 60 days or less FY % 51.7% FY % 57.3% FY % 71.3% FY % 75.2% FY % 71.7% FY % 69.8%

4 APPLICATION TRENDS (RETAIL & NON-RETAIL) FY16-2 FY16-3 FY16-4 FY17-1 FY17-2 FY17-3 Retail Non-Retail

5 APPLYING FOR A LIQUOR LICENSE? Should be submitted days before the anticipated opening date. We no longer accept non-retail applications if the applicant does not have federal approval first.

6 MAKING ALTERATIONS TO YOUR ALREADY EXISTING WINERY? 1. When should I submit an alterations request? If/when you plan on extending the location of alcohol service, such as a wine garden or patio/deck service (areas must be enclosed with a barrier that is a minimum of 42'' in height) Any alteration that affects the size of a premises' customer service area Application can be found at:

7 PLANNING ON MAKING CHANGES TO YOUR ENTITY STRUCTURE? 2. When should I submit a change in governing people application? Change in more than 10% of stock/units Election of new officers Changes in members or managers *The change to the entity structure cannot go into effect until given Board approval. *The application can be found at:

8 WHAT CAN A WINERY DO? Manufacturing Retail Sales Self Distributing Distributor Appointments Exportation Additional Opportunities: Agents License (if third party company is promoting) Other Retail Licenses Additional Locations (4) Warehousing Sales and Sampling at Farmers Markets Growler sales Tradeshows Working with nonprofits

9 WHERE CAN A WINERY POUR THEIR WINE? A winery s additional location(s) & production facility Special-occasion licensed events wine must be pre-sold to the nonprofit Beer/wine specialty shops wine must be pre-sold to the licensee Private clubs wine must be pre-sold to the licensee Restaurants that are licensed to sell wine for on-premises consumption wine must be pre-sold to the licensee Grocery store sampling event wine must be pre-sold to the license At a winery s own off-premise event under the special permit

10 ADVERTISING VIA WEBSITE OR SOCIAL MEDIA CAN DO: Promotions or events hosted by the retailer such as: Tastings Signings Winemaker, Brewery or Distillery dinners CANNOT DO: Advertise or promote FOR the retailer (not designed to advertise price specials, etc.) List an event tasting at a grocery store because the retailer is not allowed to advertise the event. Sell tickets to the event Call the event, the industries members event

11 WINERIES AT A FARMERS MARKET Allows in-state wineries to sell and sample product of their own production at a WSLCB authorized farmers market. Each sample must be two ounces or less, up to a total of two ounces per customer per day. Allows you to sell your own bottled wine at an authorized farmers market for offpremises consumption. Wine sold at an authorized farmers markets must be made entirely from grapes grown in a recognized Washington appellation or from other agricultural products grown in the state. No more than three breweries, microbreweries, or wineries combined may offer samples at a qualifying farmer's market per day. (per WAC ). Must have food available for customers to consume while sampling wine, or must be adjacent to a vendor offering prepared food. Winery employees serving wine during sampling events must hold a valid MAST permit.

12 CLASS 8, 9, 10 PERMITS Class 8 Permit: Must be submitted by a vendor who manufactures or sells a product which cannot be effectively presented to potential buyers without serving it with liquor or a manufacturer, importer or wholesaler who donates and/or serves liquor without charge to delegates and guests at a trade association of WSLCB licensees. Liquor must be served in a hospitality room or from a booth in a WSLCB approved supplier s display room at the convention. Vendors of a product that cannot be presented without liquor must purchase the alcohol from a licensed Spirits Retailer, Craft Distillery, Distiller, Fruit and/or Wine Distillery, Winery or Brewery. Class 9 Permit: Must be submitted by a manufacturer, importer or wholesaler who donates liquor for a reception, breakfast, luncheon or dinner to delegates and guests at a trade association of WSLCB licensees. The liquor may only be consumed during the event. Class 10 Permit: Must be submitted by a manufacturer, importer or wholesaler who donates and/or serves liquor to an international trade fair, show or exposition. The event must be sponsored by a federal, state or local governmental entity or organized and promoted by a nonprofit organization.

13 FAIRLY NEW: SPECIAL PERMIT FOR A WINERY, DISTILLERY, OR BREWERY Allows sampling and selling bottles of their own production at a private event location that does not hold a current liquor license. Event must not be advertised Cannot be open to the general public. Applications must be submitted 10 days before the event Once issued the permit must be posted in a conspicuous place at the premises for which the permit was issued during all times the permit is in use. The fee for the permit is $10.00 per one day event, Cannot have more than twelve permits per year.

14 BARREL AUCTION PERMIT (HB 1718) Authorizes the Liquor and Cannabis Board to issue a special permit to a nonprofit organization allowing such organization to sell wine through a private auction. Authorizes the permit holder to conduct wine tastings at the auction, provided the wine offered for tasting is the same as that being auctioned. Authorizes the permit holder to auction wine sourced from multiple wineries, but each winery must be identified on the permit application. Went into effect 7/23/2017, but rules will not be written until that date or after.

15 WHAT CAN A WINERY DO AT A SPECIAL OCCASION EVENT? Can donate product to a 501(c)(3) or 501(c)(6) nonprofit corporation or association holding a special occasion license Can pour and educate the public about their wine (must have Agent s license if distributor, COAs or winery s indirect employees) Reminder: the event is operated by the special occasion licensee, not the manufacturer May not sell wine to the public during these events May not donate money of any kind to the nonprofit holding the liquor license May accept returns and refunds of unused product, if they choose to Allowed to accept payment from nonprofit for product immediately following event May pay booth fees May provide branded promotional items (nominal value) With an invitation from the nonprofit you may sell bottles to special occasion attendees to be delivered on another day at a different location

16 PROMOTIONAL ITEMS RCW Promotional Items Branded May bear imprinted advertisement of industry only Nominal in value (singly or aggregate) To be used by the retailer and/or employee May not appeal to youth May not be given away to consumers

17 QUESTIONS? THANK YOU VERY MUCH FOR HAVING US!!

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