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Control state sales at the distillery


kkbodine

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Hello all distillers in control states, three questions.

1. Does your state allow you to sell bottles?

2. Do you have to physically transfer them to the state controlled warehouse before you can sell them at your retail shop?

3. Does your state make you buy them from the warehouse as other retailers (if any) would?

Thanks for your input,

Keith

P.S. Here in Maine we must send cases to the state, buy them (as the retailer), then we can sell them in our retail shop, and we eventually get paid the wholesale price (as the manufacturer). It is a logistical and cash flow nightmare.

Keith Bodine

Sweetgrass Farm Winery & Distillery

Union ME

207-785-3024

keith@sweetgrasswinery.com

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In Montana, we are allowed to sell up to 1.75 liters per adult per day from the distillery. For on-site sales, we are not required to send it to the state warehouse first.

For any off-site sales (tasting parties, for example), we are required to send it to the State Warehouse but can buy it back without the 40% state markup applied.

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To second Keith's point about this state system being a cash flow and logistics nightmare...it's the primary reason we don't do any sales at our distillery. Keith forgot to mention that he needs to be a registered Agency Store (the name of liquor retailers up here, whether it's a gas station or corner of the local grocery) with a $2,000 per year license fee attached to it as well. That would be the 2nd reason why we don't do sales here. The price is fixed in the state too, so no offering at a discount or a couple bucks more so as to not alienate the other retailers which I've noticed has been a topic of discussion in the past as well.

Keith, I imagine that you have to track and report the sales tax and bottle deposit too?

-Scott

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Sorry Keith, we can't help much here with your questions.

PA does not allow us to sell ANY product directly to customers.... it must be sold thru their stores.

We can't even sell one bottle after a person tours the distillery.

bummer.

Andrew

Hello all distillers in control states, three questions.

1. Does your state allow you to sell bottles?

2. Do you have to physically transfer them to the state controlled warehouse before you can sell them at your retail shop?

3. Does your state make you buy them from the warehouse as other retailers (if any) would?

Thanks for your input,

Keith

P.S. Here in Maine we must send cases to the state, buy them (as the retailer), then we can sell them in our retail shop, and we eventually get paid the wholesale price (as the manufacturer). It is a logistical and cash flow nightmare.

Keith Bodine

Sweetgrass Farm Winery & Distillery

Union ME

207-785-3024

keith@sweetgrasswinery.com

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  • 3 months later...

Keith,

In Vermont we can sell our own products without going through the state distribution system. We got this law enacted ourselves a few years ago.

We can get up to 10 4th class licenses. This could be a retail store or a farmers market spot.

We can get up to 36 special event permits per year. These multi-day permits allow us to sell at festivals and shows, no limit on sales.

We are not limited to the amount we can sell either.

Bars/Restaurants still have to buy from the agency stores.

You all are going to need to work on getting the state to change the laws. Have you formed a Maine Distilled Spirits Council yet, so you can have a larger voice at the statehouse? That helps a lot.

While your at it, get Maine to relax their tasting laws too. ALL spirits sold in Vermont can conduct their own tasting events in the stores, and there isn't too much of a hassle. Every weekend the larger stores have these going on. You can remind them that YOU all are the best people to sell and represent your products among the 1000,s out there, you'll sell more, make more money, the state will make more money, stores will sell more and make more money. I can't believe ME is "anit-biz" more so than VT, but they changed these things once they heard from us and allowed us to explain how it will help. We now have a track record that these law changes work and have helped, and we're growing here. Good luck.

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