Navigating the Liquor License and Permit Landscape for Manufacturers
Mark Vanneste
Howard & Howard Attorneys PLLC
Having a general understanding of the various types of liquor licenses and permits available will help you maximize revenue opportunities while ensuring compliance with regulatory requirements. In Michigan, manufacturers of wine, beer, or spirits are part of the “Supplier Tier” (see last month’s Wine Law article for a brief description of Michigan’s three-tier system). This article provides a summary of some of the different types of licenses available.
As part of the Supplier Tier, there are several licenses categorized as Manufacturers’ licenses.
Wine Maker: Wine Makers produce more than 50,000 gallons of wine annually. They can sell wine to wholesaler licensees, sell to consumers under an On-Premises Tasting Room Permit, self-distribute wine to retailers, and hold a Farmer’s Market Permit for the sale and sampling of wine at a farmer’s market. Local legislative approval is required for the On-Premises Tasting Room Permit.
Small Wine Maker: Small Wine Makers produce 50,000 or fewer gallons of wine annually. They have similar privileges to Wine Makers, including selling to Wholesaler licensees, selling to consumers under an On-Premises Tasting Room Permit, self-distributing wine to retailers, and holding a Farmer’s Market Permit. Local legislative approval is required for the On-Premises Tasting Room Permit.
Brewer: This license is for beer manufacturers producing over 60,000 barrels of beer annually. Brewers can sell their beer to Wholesaler licensees for distribution to retailers. They can also sell beer to consumers under an On-Premises Tasting Room Permit at their manufacturing location. Local legislative approval is required for the On-Premises Tasting Room Permit.
Micro Brewer: Micro Brewers are beer manufacturers that produce 60,000 or fewer barrels of beer per year. They have similar privileges to Brewers, including selling beer to Wholesaler licensees and consumers, and they may self-distribute if they sell fewer than 2,000 barrels of beer annually. Local legislative approval is required for the On-Premises Tasting Room Permit.
Limited Production Manufacturer: This licensee purchases beer from Brewer or Micro Brewer licensees or their out-of-state equivalents, taking ownership of the beer and further modifying it as part of the manufacturing process. The modified beer is then sold to a Wholesaler or Outstate Seller of Beer licensee. A Limited Production Manufacturer license cannot be held with any other license type issued by the Commission.
Brandy Manufacturer: Brandy Manufacturers produce brandy from wine that they manufacture. They must also hold a Wine Maker or Small Wine Maker license. Brandy can be sold to the Commission for distribution through Authorized Distribution Agents and can also be sold to consumers under an On-Premises Tasting Room Permit. Local legislative approval is required for the On-Premises Tasting Room Permit.
Distiller: Distillers produce spirit products with more than 10% alcohol by volume and manufacture over 60,000 gallons of spirits annually. They can sell their spirits to the Commission for distribution through Authorized Distribution Agents and can also sell spirits to consumers under an On-Premises Tasting Room Permit. Local legislative approval is required for the On-Premises Tasting Room Permit.
Small Distiller: Small Distillers produce spirit products with more than 10% alcohol by volume and manufacture 60,000 or fewer gallons of spirits annually. They have similar privileges to Distillers, including self-distribution if they sell less than 3,000 gallons of spirits per calendar year. Local legislative approval is required for the On-Premises Tasting Room Permit.
Mixed Spirit Drink Manufacturer: This license is for manufacturers of mixed spirit drink products with 10% or less alcohol by volume. They can sell their products to Wholesaler licensees and self-distribute if they manufacture less than 31,000 gallons of mixed spirit drink per calendar year. They can also sell products to consumers under an On-Premises Tasting Room Permit. Local legislative approval is required for the On-Premises Tasting Room Permit.
The following are some of the additional licenses certain licensees can obtain:
Off-Premises Tasting Room License: This license permits the sale of spirit, wine, or brandy products manufactured by Wine Makers, Small Wine Makers, Distillers, Small Distillers, or Brandy Manufacturers at a location not on the manufacturer’s licensed premises. Full drinks may be sold and served for on-premises consumption, and limited samples can be sold or given away for on-premises consumption. The sale of products for off-premises consumption is also allowed. Local legislative approval is required for licensure.
Joint Off-Premises Tasting Room License: This license is issued to Wine Makers, Small Wine Makers, Distillers, Small Distillers, or Brandy Manufacturers at a location not on their licensed premises and can be operated jointly with another licensee holding a Joint Off-Premises Tasting Room license. Similar to the Off-Premises Tasting Room license, this license allows the sale of products for on-premises and off-premises consumption. Local legislative approval is required for licensure.
Consumer Sampling Event License: Held by Small Distillers or Vendors of Spirits, this license permits the licensee to conduct consumer sampling events with spirits manufactured on the premises of a Specially Designated Distributor licensee. No local legislative approval is required for this license.
Direct Shipper: Wine Makers or Small Wine Makers can obtain this license, allowing them to sell and ship wine directly to consumers in Michigan or another state. Outstate Sellers of Wine located in other states can also hold this license if they are the manufacturers of the wine shipped into Michigan. No local legislative approval is required for this license.
Salesperson: This license is held by individuals who sell, deliver, or promote the products of a manufacturer or other supplier. Salespersons may also sell, deliver, or promote the products of Wholesaler licensees. No local legislative approval is required for this license.
Broker: This license is held by companies that operate as corporate salespersons for manufacturers. Brokers may also employ Salesperson licensees to sell, deliver, or promote the products of manufacturers or other suppliers. No local legislative approval is required for this license.
Warehouser: This license is held by a person authorized to store alcoholic beverages and can be obtained by a manufacturer or Wholesaler licensee. No local legislative approval is required for this license.
Limited Alcohol Buyer: This license allows a person or company to purchase alcohol for medicinal, mechanical, chemical, or scientific purposes. No local legislative approval is required for this license.
Seller of Alcohol: This license permits a person or company to sell alcohol to a distiller or wine maker for rectifying or fortifying purposes or to an industrial manufacturer. No local legislative approval is required for this license.
Industrial Manufacturer: This license allows a person or company to purchase alcohol for manufacturing products for non-beverage purposes. No local legislative approval is required for this license.
Understanding the specific requirements and privileges associated with each license is necessary to comply with the relevant laws and regulations and successfully operate your businesses in Michigan.
Have a wine law question? Reach out to Mark Vanneste of Howard & Howard at: