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Beverage Media
December 2012
know
the
law
The New York State Liquor Author-
ity introduced the suppliers permit for
some licensees who do not have statu-
tory authority to conduct tastings. Ad-
visory 2012-7 extended the reach of the
Suppliers Permit and relabeled it the
Supplier/Wholesaler Marketing Permit
(“
Marketing Permit.”)
Closer Look at
Marketing Permits
Marketing Permits are available to man-
ufacturers, importers and wholesalers.
The permits will allow such entities to
conduct tastings and provide samples of
their products to consumers and, in the
case of manufacturers and importers, to
accept orders on behalf of New York li-
censed wholesalers. These permits will
also allow a manufacturer, whether in or
out of the state, and importers (but not
wholesalers) to sell their products by the
bottle to consumers during tastings con-
ducted pursuant to the permit.
Marketing Permits are subject to a
number of conditions which include the
following:
1.
Such events may take place at:
a. In the case of a licensed wholesaler, at its
licensed premises.
b. An establishment licensed under the
ABCL to sell at retail the alcoholic bev-
erage that will be tasted.
c. The State Fair, recognized county fairs
and farmers markets operated on a not-
for-profit basis.
d. Outdoor or indoor gatherings, functions,
occasions or events sponsored by a bona
fide charitable organization.
e. Other indoor or outdoor events specifi-
cally approved by the Authority. In de-
ciding whether to approve the use of a
permit for a particular event, the Au-
thority shall consider the nature and
location of the event, and the plan of
supervision submitted by the applicant to
insure compliance with the ABCL.
2.
Notwithstanding the above provi-
sions, a beer wholesaler may only
conduct tastings at its own licensed
premises.
3.
The holder of an annual permit must
advise the Authority in writing of
the date and place of any event be-
ing held at a location described in
(1)(
e) above at least 15 days before
the event. The Authority retains
the power to disapprove the use of
the permit at a particular function
for good cause. The location for the
event is be deemed approved within
7
days unless the Authority notifies
the permit holder of its objection.
4.
No fee may be charged by the supplier
or wholesaler to a consumer attend-
ing or participating in such event.
5.
The number and size of samples must
be limited:
a. in the case of beer, wine products and
cider to 3 ounces or less;
b. in the case of wine to 2 ounces;
c. in the case of liquor to three samples of
not more than one-quarter ounce each.
6.
No tasting or sale by the bottle may
be held during the hours prohibited
by the provisions of ABCL §106(5).
7.
The permit holder must comply with
all federal and state tax requirements.
Among other things, the permit
holder must have a valid sales tax
certificate and collect and remit sales
tax on any bottle sold.
8.
The permit holder shall provide all
alcoholic beverages used for the sam-
ples or sales by the bottle. In the case
of a supplier, the alcoholic beverages
may come from the inventory of a
wholesaler at the supplier’s expense.
The permit holder must remove all
remaining product at the conclusion
of the event.
9.
Liquor and wine used for tastings do
not have to be price posted items. Li-
quor and wine used for sales by the
bottle must be price posted.
10.
All alcoholic beverages used at such
events must be in the original con-
tainers and must comply with any
one of the following:
a. the ABCL and the Authority’s regula-
tions pertaining to brand label registra-
tion; or
b. have received a Certificate of Label Ap-
proval (COLA) from the Tax and Trade
Bureau (TTB); or
c. have an exemption from COLA registra-
tion issued by TTB.
12.
The permit or a duplicate copy
thereof must be displayed at the loca-
tion where the event shall be held.
13.
The event shall be conducted by the
permit holder or an authorized agent
of the permit holder. The Dram Shop
acts will apply and the permit holder
may be liable in the event damage is
caused by a person who was served to
the point of intoxication.
Although the list above is derived
from Advisory 2012-7, it is not a direct
quote. Some areas were highlighted and
others were omitted. The permit is sub-
ject to a number of additional condi-
tions. The full Advisory can be obtained
at:
http://www.sla.ny.gov/system/files/
Advisory_2012-7_-Tastings_and_Sales_
by_the_Bottle_conducted_by_manufac-
turers_importers_and_wholesalers.pdf.
Keven Danow is an attorney representing members
of all three tiers of the Beverage Alcohol Industry and
a member of the firm of Danow, McMullan & Panoff,
P.C. 275 Madison Ave, NY, NY. 10022 (212-370-3744)
kdanow@dmppc.com
. This article is not intended to
give specific legal advice. Before taking any action, the
reader should consult with an attorney familiar with the
relevant facts and circumstances.
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