WASHINGTON WINE INSTITUTE WASHINGTON WINEGROWERS JULY 11, 2017 BETH LEHMAN - CUSTOMER SERVICE/SUPPORT MANAGER ASHLEY HONEYWELL - CUSTOMER SERVICE SUPERVISOR JOHANNA WILLIAMS - CUSTOMER SERVICE SPECIALIST HEIDI BRALEY - NON-RETAIL/RETAIL SUPERVISOR DALTON MILLS - LIQUOR LICENSING SPECIALIST MICHAEL GAINES ENFORCEMENT OFFICER
WINERY STATISTICS 924 Wineries 216 Tasting rooms 21 Bonded Wine Warehouses 10 Growers licenses 21 Winery Warehouses An additional 2 tasting rooms per production facility. Effective 7/23/17 102 authorized Farmers Markets
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 FY16-2 51.6% 51.7% FY16-3 48.3% 57.3% FY16-4 52.2% 71.3% FY17-1 61.5% 75.2% FY17-2 60.6% 71.7% FY17-3 55.3% 69.8%
APPLICATION TRENDS (RETAIL & NON-RETAIL) 900 800 700 600 500 400 300 200 100 0 FY16-2 FY16-3 FY16-4 FY17-1 FY17-2 FY17-3 Retail 612 724 784 654 783 754 Non-Retail 160 251 210 173 224 231
APPLYING FOR A LIQUOR LICENSE? Applications for a liquor license should be submitted 60-90 days before the anticipated opening date. If the application is submitted too far in advance (If there is a need for buildout/construction or you have not secured a federal license), the application may be administratively withdrawn and you will be encouraged to apply closer to your opening date. We no longer accept non-retail applications if the applicant does not have federal approval first.
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 *If you plan on doing any construction or remodeling, be sure to contact licensing to make sure an alterations request is not required. *If you are having a one-time event that may temporarily change the licensed premises, you will need to contact your enforcement officer for a one-time approval. *Application can be found at: http://lcb.wa.gov/licensing/licensing-formsand-applications
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: http://bls.dor.wa.gov/forms/700306.pdf
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 (2) (soon to be 4) Warehousing Sales and Sampling at Farmers Markets Growler sales Tradeshows Working with nonprofits
WHERE CAN A WINERY POUR THEIR WINE? A winery s additional locations 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
ADVERTISING VIA WEBSITE OR SOCIAL MEDIA CAN DO: Promotions or events hosted by the retailer such as: Tastings On-premises restaurant having a wine tasting. The industry member may place on its web site the name and location of the restaurant, the time of the event and link to the restaurant for more information. Off-premises store is having an in-store tasting. The industry member cannot provide information on this event because the grocery store cannot advertise the event. Signings The industry member can state when and where they will be for the signings of its product. Winemaker, Brewery or Distillery dinners Restaurant holds the event and features a winery. The winery may state on its site the date, time and location along with what products of the winery is being featured. It is the restaurant s function so the winery cannot advertise it as the winery s dinner or sell tickets. They may direct a person to the retailer s web site for more information. 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
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 314-20-018). A winery 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.
CLASS 8, 9, 10 PERMITS Class 8 Permit: 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. The 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.
FAIRLY NEW: SPECIAL PERMIT FOR A WINERY, DISTILLERY, OR BREWERY A special permit for a winery, distillery, craft distillery or brewery licensee allows them the ability to sample liquor and sell bottles of their own production at a private event location that does not hold a current liquor license. The event must not be advertised or open to the general public. Advertising includes but is not limited to: printed media, social media or posting on a public website or calendar. Applications for the event must be submitted 10 days before the event or the permit will not be issued. 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, and is limited to no more than twelve permits each year.
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. Goes into effect 7/23/2017, but rules will not be written until that date or after.
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
PROMOTIONAL ITEMS RCW 66.28.310 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
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