You want to boost sales for your wine shop or liquor store and know it’s time to step up your marketing and promotional efforts. When researching ways to promote your store, a few suggestions keep coming up: hosting special events and offering wine tastings.
But can you serve or sell wine without a liquor license for by-the-glass service?
Navigating the world of alcohol regulations can be tricky, even for the most seasoned professionals. Worse, serving or selling without the right licenses in place can have dire consequences and even result in your store closing.
Let us help! This post answers the question, can you serve wine without a liquor license? We’ll also examine six different liquor licenses and permits you might explore for wine sales and service, giving you all the information you need to get started securing the right licenses for your business.
Can You Serve Wine Without a Liquor License?
Let’s not beat around the bush. Instead, answer the key question: Can you serve wine without a liquor license? Generally speaking, no.
However, your store may face some nuances and unique situations where the line between whether or not you need a license — or what type of license you need – becomes murky. The first thing to understand about liquor and wine licensing is that your requirements will vary depending on your state or locality.
Related Read: How To Sell Wine Online in 2024
Some states have stricter-than-average liquor licensing laws, making serving or selling wine more challenging. Let's take a closer look at a few examples of states with stricter licensing requirements. If you operate in any of these states, take special care when planning to sell or distribute wine in your store.
Utah
- The alcohol content in beer sold in grocery and convenience stores is limited to five percent ABV (alcohol by volume)
- Cocktails sold in restaurants cannot exceed 1.5 ounces of primary liquor
- All beer, wine, and spirits must be sold through state-run liquor stores
Related Read: Utah Liquor Store Inventory Basics
Pennsylvania
- Wine and spirits can only be purchased through state-run liquor stores
- Beer must be purchased separately from state-run stores, licensed beer distributors, or restaurants/bars
- Grocery stores and gas stations are only allowed to sell beer if they have a separate restaurant license
Kansas
- Grocery and convenience stores can only sell beer with an alcohol content of six percent ABV or less
- Liquor stores are prohibited from selling non-alcoholic products, such as mixers or snacks
- Alcohol sales are prohibited on Sundays, except in certain cities that have passed special ordinances
Tennessee
- Grocery stores were only allowed to start selling wine in 2016
- Liquor stores are prohibited from selling non-alcoholic products, such as mixers or snacks
- Distilleries were only allowed to start selling spirits directly to consumers in 2017, with certain restrictions
Mississippi
- Beer with an alcohol content above five percent ABV can only be sold in licensed liquor stores
- Some counties are completely "dry," meaning the sale of alcohol is prohibited entirely
- Alcohol sales are prohibited on Sundays, except in certain cities that have passed special ordinances
As you can see, liquor licensing laws vary significantly from state to state and even on the city level. Researching and understanding the specific licensing requirements in your area is crucial before attempting to serve or sell wine.
Now that we've covered some of the nuances and state-specific considerations let's examine six different types of liquor licenses you may explore to sell or serve wine. By understanding these options, you'll have all the information you need to apply for the right licenses for your business.
1. Retail License (Off-Premise)
The first — and most common — type of license you may need to explore to serve or sell wine is a retail license. Also known as an off-premise license, this type of license is required for grocery stores, liquor stores, and wine shops looking to sell wine by the bottle that customers will consume off-site.
Related Read: ANSWERED: How Long Does It Take To Get a Liquor License?
It's important to keep certain restrictions in mind when it comes to off-premise sales. For instance, some states may have liquor store limitations on the highest alcohol content or size of bottles that can be sold in retail stores.
Also, retailers may need to follow minimum pricing or promotional restrictions. Before running any liquor store promotions, make sure to check marketing regulations for wine and other alcohol in your state or locality.
Another important consideration for off-premise sales is taxation and reporting. Depending on your state, you may be subject to specific tax rates or reporting requirements for off-premise wine sales. It's crucial to stay on top of these regulations to avoid any legal or financial issues down the line.
NOTE: you may need additional licensing if you choose to sell beer and spirits in your store alongside wine. Check your state and local regulations.
2. On-Premise License
If you plan to sell wine by the glass or bottle for customers to enjoy on-site, you'll need an on-premise license.
Restaurants, bars, and tasting rooms most commonly use this license. When serving wine on-site, you should also be aware of any restrictions on the maximum serving size of drinks per customer, as these can vary by state.
Depending on the types of food and beverage you intend to serve, you may need to get additional permits for food service, liquor or beer service, or live entertainment in addition to the basic on-premise license.
On-premise sales may have different tax rates or reporting requirements than off-premise sales. Additionally, you will likely need to comply with responsible service training and age verification protocols to ensure that alcohol is safely and legally served.
3. Wholesale License
You'll need a wholesale license if you're interested in selling wine to other licensed retailers or restaurants.
This type of license allows you to act as a middleman between wine producers and retailers or restaurants, selling liquor store inventory or wine to these businesses. However, it's important to note that a wholesale license typically requires a separate warehouse or storage facility to house your inventory.
When it comes to wholesale sales, there may be minimum purchase requirements or volume restrictions to keep in mind. Additionally, wholesalers may need to comply with price posting or product registration requirements to ensure fair competition and prevent price gouging.
If you’re a wholesaler, it's important to consider taxation and reporting. Depending on your state, you may need to collect and pay excise taxes or keep detailed sales records. You must also be aware of franchising laws that govern the relationship between wholesalers and suppliers and obtain a wholesale license.
4. Producer License
You'll need a producer license if you plan to open a winery and produce and sell your own wine.
This license type is typically required for wineries, vineyards, and micro-wineries that want to create and distribute unique blends. You should also keep in mind that producer licenses often have specific zoning and land use requirements, so be sure to check your local regulations before investing in a storefront for your winery.
When producing wine, you’ll want to consider several additional regulations. To properly identify and market your products, comply with the labeling and packaging regulations of both federal and state authorities. Some states require specific licenses for direct-to-consumer sales or on-site tasting rooms, so research these options if they apply to your business.
Related Read: 5 Features You Need in a Wine Boutique POS
Another important consideration for producers is record-keeping and inventory management. Depending on your state, you may be required to maintain detailed production and inventory records to ensure that you operate within legal limits. Additionally, some states restrict the maximum production volume or percentage of out-of-state grapes that can be used in your products.
5. Direct Shipping License
If you're interested in engaging in liquor store e-commerce and shipping wine directly to consumers in states where it's permitted, you'll need a direct shipping license.
This license allows you to bypass traditional retail channels and sell your products directly to customers, often through online or mail-order sales.
If you plan to engage in direct shipping, you need to consider several additional factors, including volume limits and customer age verification requirements. Shippers may need separate licenses for each state they ship to, so research these requirements carefully.
When shipping products directly, it's important to select the right carrier and comply with state regulations.
Some states require direct shippers to use licensed third-party carriers or report their shipments to state authorities. This is to make sure that products are shipped legally and safely. Regulations for direct shipping may differ from those for in-state sales, which means that it's important to stay informed on these requirements to avoid any issues.
6. Special Event License
Finally, if you plan to serve wine for a temporary event, like a festival or market, but don’t plan to serve wine daily in a store, you'll need a special event license. This license allows you to sell wine by the glass or bottle for a limited time, and often in a specific location.
However, it's important to note that a special event license typically requires a separate application for each event, so be sure to plan ahead. And when it comes to special events, there may also be specific hours of operation or security requirements to consier.
Also, licensees may need to comply with local health and safety regulations for temporary food service, such as hand-washing stations or food storage requirements.
Related Read: 4 Ways to Attract Customers to Your Wine Mart
Another important consideration for special events is taxation and reporting. Depending on your state, special event sales may be subject to different tax rates or reporting requirements than regular sales, so staying on top of these regulations is important.
Some states also impose restrictions on the maximum serving size or number of drinks per customer at special events, so be sure to research these requirements carefully before planning your event.
Can You Serve Wine Without a Liquor License? Maximizing Profits from Wine Sales
You must obtain the proper licensing if you want to serve wine in your store, whether by selling bottles or offering complimentary or purchased glasses. It’s critical to maintain compliance with the law and avoid fines and penalties.
But getting the right license is only the first step on your journey to profitable wine sales and service. If you want to succeed, you need the right tools in place. The most critical tool you need in your store is a point of sale system designed for wine shops and liquor stores.
Investing in a POS system designed specifically for wine shops and liquor stores can streamline your operations, reduce errors and inefficiencies, and ensure that you're always compliant with regulatory and legal requirements.
Bottle POS offers a point of sale system designed to help wine and liquor store owners grow their businesses. From real-time inventory tracking to automated age verification and detailed sales reporting, Bottle POS has everything you need to manage your store.
Schedule a demo of Bottle POS to see how our all-in-one solution can help you manage wine sales in your store.
