Tuesday, May 31, 2011

Wine Products

The purpose of this advisory is to provide guidance to industry members and agency staff with
respect to the sale and distribution of wine products.
In 1984, the ABCL was amended to add a new classification of alcoholic beverage called “wine
products”, as defined in §3(36-a). At that time §79-a was also added to the ABCL. That section
allowed persons holding an off-premises beer license to obtain a permit to also sell wine
products for off-premises consumption. In 1987, with the addition of  §54-a, a separate offpremises beer and wine product license was created. In 1989, §79-b was added to allow persons
holding on-premises beer licenses to obtain a permit to also sell wine products for on-premises
consumption.
The ABCL, however, does not address other issues regarding the sale and distribution of wine
products. The following is a summary of the Authority’s interpretation of the ABCL with respect
to those issues.  Bulletin 547, which addresses the same subject, is hereby rescinded.
Contents of wine product
Wine products are defined in ABCL §3(36-a) as beverages “containing wine to which is added
concentrated or unconcentrated juice, flavoring material, water, citric acid, sugar  and  carbon
dioxide and containing not more than six per centum alcohol by volume, to which nothing other
than such wine has been added to increase the alcoholic content of such beverage.”  [Emphasis
added]. Given the use of the word “and”, the beverage must contain each of the contents
referenced in the definition.
Retail sales
In addition to those holding a license under  §54-a or a permit under  §79-a or  §79-b, persons
holding the following licenses may sell wine products at retail:
On-premises liquor;
On-premises wine;
Off-premises liquor;Advisory #2011-2
April 27, 2011
Page 2 of 2
Off-premises wine; and
“C” beer wholesaler.
Wholesale distribution
   
Persons holding the following licenses may sell wine products at wholesale:
Beer wholesaler;
Liquor wholesaler;
Wine wholesaler;
Winery; and
Farm winery or micro winery, but only wine products made exclusively from grapes or
other fruits or agricultural products grown or produced in this state.
Production
Persons holding the following licenses may manufacture wine products:
Winery; and
Farm winery or micro winery, but only wine products made exclusively from grapes or
other fruits or agricultural products grown or produced in this state.
Terms of sale
Wholesalers and manufacturers must sell wine products in accordance with the terms of sale set
forth in ABCL §101-aa & §101-aaa.   Therefore, the provisions of §101-aaa apply to all sales of
wine products to retailers except with respect to package and wine stores. Sales of wine products
to those licensees are governed by §101-aa.
Brand label registration
The brand or trade name label of wine products  must be registered with and approved by the
Authority. The exception provided in ABCL  §107-a(4)(c)(3) for wine does not  apply to wine
products.
Price posting
Wine products are not subject to the price posting requirements of ABCL §101-b