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TTB and sampling at the distillery


grehorst

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Posted at the request of Bill Owens...

Hi Bill,

I e-mailed you previously about legislation that will be introduced in our state to allow farm distillery operations. I spoke with the TTB and they said no sampling can occur on the bonded facility. Do you know of any distilleries that are using a work around to be able to provide sampling. I would like to contact them to discuss. The TTB told me the only way was to have a seperate retail license and not within the bonded premises.

Thanks,

Jeff

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Posted at the request of Bill Owens...

Hi Bill,

I e-mailed you previously about legislation that will be introduced in our state to allow farm distillery operations. I spoke with the TTB and they said no sampling can occur on the bonded facility. Do you know of any distilleries that are using a work around to be able to provide sampling. I would like to contact them to discuss. The TTB told me the only way was to have a seperate retail license and not within the bonded premises.

Thanks,

Jeff

We here at Colorado Gold Distillery have a retail store on site and are allowed to offer samplings within our store. We can also sell OUR products only on site without another license. It is legal in the state of Colorado and allowed by the TTB. Our store is in the same building but and this is KEY, not a part of the bonded area. Coop

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It would be helpful if we knew what state Jeff, is in? Every state has different laws and "work-arounds."

Posted at the request of Bill Owens...

Hi Bill,

I e-mailed you previously about legislation that will be introduced in our state to allow farm distillery operations. I spoke with the TTB and they said no sampling can occur on the bonded facility. Do you know of any distilleries that are using a work around to be able to provide sampling. I would like to contact them to discuss. The TTB told me the only way was to have a seperate retail license and not within the bonded premises.

Thanks,

Jeff

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It would be helpful if we knew what state Jeff, is in? Every state has different laws and "work-arounds."

I am from North Dakota and currently have sponsors for a bill to be introduced next session allowing farm distillery operations. I want to be able to provide sampling within the laws of what the TTB allows and make sure the bill provides for that privilage within the state statute. From a previous post I gather that all that is required is the ability to retail on the state level and have the retail section in an unbonded area. Any thoughts or suggestions?

Jeff

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On the wine/cider side of things, a sales area is _usually_ outside of the bonded area. But not always. The federal winery operations report (double sided 11x17 page) has a line item for sampling/tasting that doesn't seem to have an equivalent on the DSP form. The TTB agent that came out when I added the DSP to the BW didn't have an issue with wine sales from the BW, as long as I logged the removals daily.

Since the DSP is technically adjacent to the BW, that still would put any prospective spirits sales off the DSP. (And they aren't allowed by WI law, yet...)

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  • 2 weeks later...
  • 2 weeks later...
The NY Farm Distiller law allows sales and tastings as well, but I don't think it's expected that the sampling room is right in the bonded warehouse. Ralph Erenzo would know more.

Does anyone have an idea how many states have provisions allowing sampling? I see New York and Colorado from previous posts.

Jeff

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You may designate the tasting room for tax paid spirits only, which take's it out of the bonded area and therefore becomes legal.

Hope this helps.

Donald R Outterson

Posted at the request of Bill Owens...

Hi Bill,

I e-mailed you previously about legislation that will be introduced in our state to allow farm distillery operations. I spoke with the TTB and they said no sampling can occur on the bonded facility. Do you know of any distilleries that are using a work around to be able to provide sampling. I would like to contact them to discuss. The TTB told me the only way was to have a seperate retail license and not within the bonded premises.

Thanks,

Jeff

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  • 2 months later...

Does the TTB allow tasting for non-retail purposes on the bonded premises? For example, if I bring in a bunch of local bar tenders for a distillery tour can I serve samples?

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Guest sensei
We can also sell OUR products only on site without another license. It is legal in the state of Colorado and allowed by the TTB. Our store is in the same building but and this is KEY, not a part of the bonded area. Coop

This is how Jack Daniel's and George Dickel sell product at the distillery. The areas are within buildings, but have their own door and cash register. When you enter the room, you "leave" the distillery property and is how each explained how they were able to sell "on premises".

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This is how Jack Daniel's and George Dickel sell product at the distillery. The areas are within buildings, but have their own door and cash register. When you enter the room, you "leave" the distillery property and is how each explained how they were able to sell "on premises".

It's still the distillery property, it's just not part of the bonded area.

TN allows DSP's to have gift shop sales of spirits produced at the same site as the gift shop, which is nice. It's just the rest of Tennessee's distillery laws that are nonsense.

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Guest sensei
TN allows DSP's to have gift shop sales of spirits produced at the same site as the gift shop, which is nice. It's just the rest of Tennessee's distillery laws that are nonsense.

Absolutely true. Distilleries are only legally allowed in Lincoln (Pritchard's Rum), Moore (Jack), and Coffee (George Dickel and my home) counties. It would be cool to have a distillery in downtown Nashville, but legally not possible. Why the legislature says no to more tax revenue I have no idea. Many laws concerning alcohol in the US are nonsense.

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Why? Because the temperance movement is not gone. It's not [usually] noisy, and it doesn't go by last century's names - but it's there.

Alcohol regulation is a weapon with many edges. Collection (and protection) of tax revenue and consumer protection (honest labelling) get most of the talk. But take a look at the 4 Prohibited Practices in Title 27. They [supposedly] are anti-corruption measures - and every one has the the practical effect of raising the price the consumer pays for alcohol. Or at least blocking efficiencies that reduce prices.

Likewise with the manadatory use of all three Tiers.

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  • 1 year later...

In New York at a recent conference on wineries and distilleries in New York, one seminar included the Chief Counsel of the NYS SLA and a representative from the Licensing Division of the TTB. This question came up. The two looked at each other and shrugged and smiled. They acknowledged the contradictions in the law(s) relating to this question between States' laws and Federal regulations. In general the answer they seemed to be giving was that the Fed has no intention of challenging State's rights to control distribution and sale of alcoholic beverages, the Federal regulation notwithstanding. It's another version of "don't ask, don't tell". I'm willing to bet the overwhelming majority of distilleries, wineries and breweries are in violation of some Federal regulation or another but in compliance with their State regs. Best advice, stay in compliance with the laws to the best of your ability and in good faith and pay your taxes. If it comes down to a fight, the States will scream that prohibiting tastings and tours through working distilleries will eliminate all the tax the States collect on sales that result from those tastings and tours. Not to mention the loss of excise tax when new small distillers fail because they can not properly promote and sell their goods. And did I mention, pay your taxes. Both representatives agreed on one thing, all else can be resolved, but you have to pay your taxes or no mercy.

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  • 1 year later...

Coming late to this thread, but my questions seems to fit here.

Does the TTB allow you to operate a distillery in conjuncture with other businesses located within the same building? For example,

I know I have seen distillery operations added to existing breweries. How separate do you need to keep operations, or do you just bond the entire production area?

Could someone open a distillery and a bar within the same space?

This of course assumes all proper state/local licenses etc.

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Absolutely true. Distilleries are only legally allowed in Lincoln (Pritchard's Rum), Moore (Jack), and Coffee (George Dickel and my home) counties. It would be cool to have a distillery in downtown Nashville, but legally not possible. Why the legislature says no to more tax revenue I have no idea. Many laws concerning alcohol in the US are nonsense.

What about Sevier (OSD) We have a dsp there.

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