Special Events Permits Come to Washington Breweries!

Thanks to efforts by the Washington Brewers Guild, brewers can expand the ways they sample and sell their beers. Special Events Permits enter the landscape in 2016!
Thanks to efforts by the Washington Brewers Guild, brewers can expand the ways they sample and sell their beers. Special Events Permits enter the landscape in 2016!

Good news from Olympia! Very soon, Washington Brewers will be able to get Special Events permits to expand the way they can sample and sell their beers. Thanks to House Bill 2605 (signed by the Governor on 3/31/16 and effective 6/9/2016), brewers can seek out a special events permit up to twelve times a year. The permit lets breweries hold an event offsite from the brewery or taproom where they can sample and sell their beers directly to consumers. Brewers must seek out the permit ten days in advance of the event, and must post the permit at the premises where the event will be held.

How might Washington breweries take advantage of the Special Events permit? One example, aptly pointed out in coverage by the Washington Beer Blog, explains the scenario where a brewery on one side of the pass wants to reach out, sample, and sell to its fans on the other side of the pass. Rather than find a retail location for a tap takeover, the brewery can put together its own event to not only pour but also directly sell its beers. Breweries could also use allotted permits to serve at corporate events or other gatherings.

Ultimately, under the new law, the Special Events permit would give breweries one more way to reach out into the public, and they can do so up to twelve times per year. The permit cost is $10.00.

We’re excited to report this one, but also a little bummed it’s taken this long for breweries to get this privilege. The law revises RCW 66.20.010, where you’ll note that the present RCW 66.20.010(13) grants essentially the same right to distilleries and RCW 66.20.010(14) grants the same right to wineries, so it’s something our spirits-, cider-, and mead-making friends have been able to do for a while now. We’re proud the Washington Brewers Guild got it done, but would also support a collaborative, evenhanded approach to pushing the RCWs along in favor of all producers the future.

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Are Minors Allowed at a Washington Brewery?

Can Washington breweries have minors on the premises? What does a brewery need to do?
Can Washington breweries have minors on the premises? What does a brewery need to do?

If a Washington brewery wants minors on the premises, what does it need to do?

The question comes up quite a bit. Can families spend time at a brewery? We’ve seen kids at breweries, but is it legal? Can we get into trouble? As the law and regulations stand right now, the answer is fairly straightforward.

First things first. Federal laws and regulations don’t have a say. So, we don’t need to worry about the Alcohol Tobacco Tax & Trade Bureau (TTB) when thinking about minors on a brewery premises. TTB cares about the premises layout, a lot. But they don’t dictate who comes onto it.

The state perspective, however, does matter. Here in Washington, we have the Revised Code of Washington (RCW) which includes law created by our legislators. We also have the Washington Administrative Code (WAC) which includes regulations. The Washington State Liquor and Cannabis Board (LCB, formerly the Washington State Liquor Control Board) is the regulatory agency that creates the relevant regulations for the alcoholic beverage industry here.

Between the RCW and WAC, here’s what we have. The base license to operate a brewery in Washington State is the Microbrewery License or the Domestic Brewery license, depending on your volume of production. For most reading this, the Microbrewery license applies (60,000 bbl annually).

The base license is treated as a non-retail license. That is, licensees—those who have the licensee—are not treated like “retailers.” This is the case, even though we all know breweries in Washington are allowed to sell beer at retail, just like retailers.

Importantly, though, there is no age restriction imposed at a non-retail premises. Therefore, when a Washington brewery uses its built-in retail rights—under its “non-retail license”—the Washington brewery can allow families and minors on the premises. Of course, the brewery can’t serve alcohol to those minors. And best practice would be to have prepackaged snacks available.

Can a brewery obtain a retail license to supplement its non-retail rights? Yes. But at the location licensed with the retail license, the brewery is subject to food minimums or age restrictions. Retail licensees do have additional obligations to have minors on the premises.

We’ll touch on why a brewery might want a retail license in our next post. As it stands, though, a Washington brewery can have minors on the premises—without burdensome or, truly, any food requirements—so long as the brewery is using its built-in rights to retail beer.

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Brewery Startup Series #8: Timeline to Opening

Going from vision to lights on and taps open can't be done overnight, but this brewery startup timeline gives you a good estimate of the timeline from idea to frothy fruition. (Pictured? That's Burial Beer Co., the vision of Doug Reiser of Reiser Legal, a craft brewery located over in Asheville, NC. Stop by and say hi to Doug sometime.)
Going from vision to lights on and taps open can’t be done overnight, but this brewery startup timeline gives you a good estimate of the timeline from idea to frothy fruition. (Pictured? That’s Burial Beer Co., the vision of Doug Reiser of Reiser Legal, a craft brewery located over in Asheville, NC. Stop by and say hi to Doug sometime.)

How long does it take to open a brewery? I’ve put together resources as a part of our Brewery Startup Series in the past. I thought it was time to revisit the milestones we’ve provided, putting the brewery startup process into a helpful timeline for those thinking about getting started. This is a sketch of what it looks like for most emerging alcoholic beverage businesses, getting at how long it takes to open a brewery:

8+ months out:
-Business Planning: Put together a business plan, consider whether investors are needed. If so, you may need to add to the timeline, to compliantly raise funds and bring those investors onboard.

7-8 months out:
-Business Setup: Form your entity, obtain an Employer Identification Number, Open a Business Bank Account, Fund the Account. This comes first.
-Get an Operating Agreement together that guides decision making, transfers of interests, and sets forth the business and management structure.
-Take steps to clear your brewery name.
-As soon as the entity comes together, file for protection for your selected and cleared brewery name. (Can do this up to 3 years or so before you open, but best to wait until the entity is in place.)

5-6 months out:
-Begin seeking out space, negotiate a lease.
-Once a lease is in place, kick off federal licensing as much as is possible.
-Order equipment.

1-2 months out:
-Tee up the state licensing process as much as possible so that when federal comes in, you’ll be ready to submit.
-Obtain federal approval and submit to state.
-Submit label approvals to TTB or the state, if required.
-Clear and protect all important brand material, such as the brewery logo and flagship beer names.

There are many sub-steps of course, and the scope of the project and commitments of the founders may affect the timeline a good bit, but those are the big milestones. If you have a good idea of your team, a handle on brewing, and a vision of what you want to do, this is a realistic look at how it works for many brewery startups. We’re here to help for those who have questions or are looking to fill in the gaps.

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Introducing: Washington State Liquor and Cannabis Board!

And just like that the Washington State Liquor Control Board has become the Washington State Liquor and Cannabis Board. Here’s Reiser Legal’s warm welcome to the agency we know and love, under a fresh new moniker. I suppose it’s only fair, given the rise of the cannabis industry—and in this the Evergreen State, at that. Maybe few have noticed and few will ultimately care. But, I like the new name! And, mostly, I’m just glad I can still affectionately think of them as the LCB (because LMB just wouldn’t have that same authoritative ring).

For those wondering when the change happened, it looks like the confetti fell on July 24, 2015, when a number of LCB-related bills went into effect after this last legislative session. Turns out, a section of the Cannabis Patient Protection Act (Senate Bill 5052) which we hadn’t been tracking was what made the change (which, LCB reports, is the first change to the name since the Liquor Control Board was established by the Steele Act back on January 23, 1934).

Here’s a header from their homepage taken just now:

Introducing, the Washington State Liquor and Cannabis Board!
Introducing, the Washington State Liquor and Cannabis Board!

And, here’s an old snap from April or so, thanks to the Wayback Machine:

 

Screen Shot 2015-07-29 at 3.38.27 PM

 

 

 

 

 

Nothing but hard-hitting news here on the Brewery Law Blog!

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Can a Washington brewery make cider or mead? Can a Washington winery make beer?

Breweries make beer. Wineries make wine (or, under their license, other emerging products such as cider and mead). But what about the reverse? Can a Washington brewery produce wine, cider, and mead? Or, can a Washington winery produce beer? Can either start distilling? Yes, the entity can do so. But, as you might expect, it’s critical to obtain the proper alcohol licenses to produce beverages in the other produCan a Washington Brewery Make Cider or Mead?ct category. Indeed, at both the state (Liquor Control Board or “LCB”) and federal levels (Alcohol and Tobacco Tax and Trade Bureau or “TTB”), different licenses are required to cross over into producing other kinds of alcoholic beverages. There are some facility setup issues to bear in mind when doing so, with separation concerns, but they’re not insurmountable. Indeed, as interest in all kinds of fermented beverages is on the rise, we expect to see more beverage businesses extending their brand into these new places.

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