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Wine Manufacturing Licensing Options

August 2007
Wine Manufacturing Licensing Options

Domestic Winery License (DOMW) – Section 311.190, RSMo, and 11 CSR 70-
2.110

• DOMW’s may manufacture 500,000 gallons or less of wine or brandy


annually;
• Alcohol content must be not in excess of 18% alcohol by weight for the wine
and not in excess of 34% alcohol by weight for the brandy;
• License fee is $5 for each 500 gallons up to a maximum of $300; and
• Wine and brandy making material produced or grown outside of Missouri
cannot exceed 15% of the prior year wine entered into fermentation. The
Director of Agriculture can increase the amount of outstate wine making
materials allowed in years where there is a natural disaster and substantial
loss to Missouri wine making materials. This year the Director of Agriculture
has increased the percentage allowed to 95% due to substantial loss of
grapes from a late freeze earlier this year.

Advantages/Disadvantages to DOMW License

Advantages
1. One license type allows to manufacture, wholesale and retail Missouri
produced wine and brandy products for one license fee.
2. Winery can obtain retail by the drink (RBD) license for $300 that would entitle
winery to sell all alcoholic products to consumers on premises regardless of
alcohol content and/or Missouri produced. (Section 311.070.9)
3. The RBD license is a seven day license and allows Domestic Wineries to sell
on Sunday without having to obtain a Sunday license.
4. Winery can obtain a catering permit with their RBD license to do off premise
wine tastings for $10 a day. (Section 311.485)
5. Not required to price post when selling to retailers.
6. May manufacture brandy with an alcoholic content of not more then thirty-four
percent.

Disadvantages
1. Limited to 15% out-of-state wine making material.
2. Must obtain RBD license to sell anything other then Missouri produced wines
3. Cannot do off premises tastings without obtaining a RBD license and a
Caterers permit. Effective August 28, 2007, the winery will not have to obtain
a caterers permit for wine tasting off a licensed premise, or at tax exempt
organizations premises licensed with the Division. (Section 311.297, See
page 6)

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Wine Manufacturing Licensing Options

Additional Information regarding Domestic Wineries:

• May act as wholesaler and/or solicitor.

• Can manufacture, wholesale and retail.

• Can upgrade to Manufacturer/Solicitor license if product exceeds 15% of


Missouri produced wine making materials. In 2007, Wineries are allowed to
use up to 95% of out-of-state wine making materials.

• Shall register each new product following the Primary American Source of
Supply requirements.

• Are permitted to purchase wines and brandies manufactured by any Domestic


Winery Licensee, however, these wine and brandies may only be sold to
consumers.

• May sell and deliver any wine or brandy products produced in accordance
with Section 311.190 to other wholesalers and retailers.

• Must keep the premises used for manufacture and sale of domestic wine
separate and apart from any residence.

• Shall keep product in the process of fermentation on the premises covered by


the license.

• Can sell domestic wine to consumer on premise.

• Shall sell their wine in original package of not less than 100 ml or more than
50 gallons. Cannot sell by the drink, without obtaining an additional RBD
license.

• May obtain RBD license that would allow to sell by the drink, and can get a
caterers to have off premises tastings. You must have a RBD (primary
license) to get a caterers license (secondary license).

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Wine Manufacturing Licensing Options

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Wine Manufacturing Licensing Options

22% Manufacturer/Solicitor License (22MS) - Section 311.180.1(2) RSMo

• Allows for the manufacturing and soliciting of orders for all intoxicating liquors
containing not in excess of twenty-two percent alcohol by weight.
• License fee is $200 per year.
• Cannot sell brandy with an alcohol content above 22% alcohol by weight
under this license type.
• No gallonage limits on manufacturer.
• Allows licensee to manufacture and sell to Missouri wholesalers, including
their own license.
• Sales made and transfers to the 22WS license must be tax paid.
• Manufacturers in Missouri can solicit orders outside Missouri as long as they
have primary American source.

Advantages/Disadvantages to 22MS License

Advantages
1. No restrictions on the amount of out-of-state wine making material that may
be used. However, must comply with Federal Labeling Requirements.
2. Can obtain retail by the drink (RBD) license for $300 that would entitle
manufacturer to sell to consumers by the drink seven days a week. (Section
311.070.11, 2007 SB 299)
3. Can obtain a catering permit to do off premise wine tastings for $10 a day.
(Section 311.485)

Disadvantages
1. Must obtain a 22% Wholesale Solicitor license (22WS) costing $200 annually
in order to sell to retailers. (Section 311.180.1(8), RSMo)
2. Must obtain RBD license for $300 annually to sell to consumers.
3. The cost to be licensed as a manufacturer who can sell to retailers and
consumers and also do wine tastings is much more with this license than a
DOMW.

Wholesale License Type – 22%Wholesale Solicitor License (22WS) –


Section 311.180.1(8):

• Allows licensee holding 22MS and 22WS licenses to sell to other retailers.
• Can deliver to retailers, can sell to Missouri wholesaler.
• Merchandise received on 22WS license must be sold at prices posted by
wholesaler when selling to retailer.
• Wholesaler must invoice for sells to own retail license.
• Price posting required when selling to retailers.

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Wine Manufacturing Licensing Options

*************DIRECT WINE SHIPPING LICENSE******************


EFFECTIVE AUGUST 28, 2007

Direct Wine Shipping License (DWS)

Missouri wine manufacturers will be able to ship wine within the State, and out-
state wine manufacturers can ship wine into the State when the direct wine
shipping legislation takes effect on August 28, 2007 (Section 311.185).

It requires both instate and out state wine manufacturers to register as direct
wine shippers, and sets out standards to assure product integrity and provides
for the collection of excise taxes on direct wine shipments by wine
manufacturers. The changes include:

• Changes amount of wine allowed to be shipped to Missouri consumers from 2


cases per year to 2 cases per month.

• Changes Missouri from a reciprocal state to a permit state for wineries, and
remains a reciprocal state for retailers shipping wine.

• Ensures state collection of excise tax on wine shipped to Missouri residents.

• Has requirements for common carriers to ensure deliveries are not made to
any person under 21 years of age.

• Does not change current shipping practices of state retailers making


shipments to Missouri residents.

Wine Manufacturers wanting to direct ship wine to consumers must:

(1) File an application with the Division of Alcohol and Tobacco Control; and

(2) Provide to the Division of Alcohol and Tobacco Control a true copy of its
current alcoholic beverage license issued in this state or any other state, as well
as a copy of the winery license from the Alcohol and Tobacco Tax and Trade
Bureau.

All wine direct shipper licensees shall:

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Wine Manufacturing Licensing Options

(1) Not ship more than two cases of wine per month to any person
for his or her personal use and not for resale;

(2) Not use any carrier for shipping of wine that is not licensed
under this section;

(3) Only ship wine that is properly registered with the Alcohol and
Tobacco Tax and Trade Bureau;

(4) Only ship wine manufactured on the winery premises;

(5) Ensure that all containers of wine delivered directly to a resident of this state
are conspicuously labeled with the words "CONTAINS ALCOHOL: SIGNATURE
OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY" or are
conspicuously labeled with wording preapproved by the Division of Alcohol and
Tobacco Control;

(6) If the winery is located outside of this state, by January thirty-first, make a
report under oath to the Supervisor of Alcohol and Tobacco Control setting out
the total amount of wine shipped into the state the preceding year;

(7) If the winery is located outside of this state, pay the Division of Alcohol and
Tobacco Control all excise taxes due on the amount to be calculated as if the
sale were in this state at the location where the delivery is made; and

(8) Permit the Division of Alcohol and Tobacco Control to perform an audit of the
wine direct shipper licensees' records upon request.

Alcohol Carrier License (ACL) (Section 311.185.4 & 5)

This law also requires carriers/shippers to apply for an alcohol carrier license in
order to transport and deliver shipments of wine directly to consumers. Alcohol
carriers must:

(1) Not deliver to any person under twenty-one years of age, or to any intoxicated
person, or any person appearing to be in a state of intoxication;

(2) Require valid proof of identity and age;

(3) Obtain the signature of an adult as a condition of delivery; and

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(4) Keep records of wine shipped which include the license number and name of
the winery or retailer, quantity of wine shipped, recipient's name and address,
and an electronic or paper form of signature from the recipient of the wine.

NEW TASTING PROVISIONS – EFFECTIVE AUGUST 28, 2007

311.297. 1. Any winery, distiller, manufacturer, wholesaler, or brewer or


designated employee may provide and pour distilled spirits, wine, or malt
beverage samples off a licensed retail premises for tasting purposes provided no
sales transactions take place. For purposes of this section, a sales transaction
shall mean an actual and immediate exchange of monetary consideration for the
immediate delivery of goods at the tasting site.

Allows wine manufacturer to provide and pour wine off a licensed retail premises
for wine tastings as long as no sales transaction occurs. Could be used for home
tasting parties.

2. Notwithstanding any other provisions of this chapter to the contrary, any


winery, distiller, manufacturer, wholesaler, or brewer or designated employee
may provide, furnish, or pour distilled spirits, wine, or malt beverage samples for
customer tasting purposes on any temporary licensed retail premises as
described in section 311.218, 311.482, 311.485, 311.486, or 311.487, or on any
tax exempt organization's licensed premises as described in section 311.090.

This allows wine manufacturers to provide, furnish and pour for tasting purposes
at picnic licensees events, caterers licensees events and also on tax exempt
licensed premises.

Out-of-State Retailers

It remains illegal for out-of-state retailers to ship wine directly to consumers from
any state other than reciprocal states per Section 311.462, RSMo. Missouri
requires a signed agreement from the alcohol regulators in reciprocal states
indicating that no licensing or license fees are required, and that excise taxes are
not required from Missouri retailers shipping into their state. In addition, Missouri
requires the agreement to contain a clause indicating that the reciprocal state will
take administrative action against licensees in their state that violate Missouri
laws.