Specific measures needed now to help craft beverage industry

Maybe it took the corona virus pandemic to fully expose the weaknesses and ridiculousness in West Virginia beverage alcohol regulation, but expose them it did. A number of archaic rules and policies need to be overturned and modernized ASAP to help our craft beverage and hospitality service industries survive this crisis. A good effort is currently underway to bring some regulatory relief to the state’s hospitality industry. Brilliant Stream is encouraged by that, but the changes need to go further.

Here is our list of the top items that need addressed sooner than later.

Relief for all licensees

For classes of alcohol licensees whose licenses expire on June 30, the license renewal process begins now. Renewal notices and forms have already been sent out by the WVABCA. These require getting the applications notarized and such and require a license fee to be paid. The state should extend the renewal date and allow more time for licensees to get this process completed and for the WVABCA to process the renewals. A reduction or one-time elimination of renewal fees would also be helpful. For all winery, distillery, and brewery licensees that owe monthly or quarterly production taxes, it would be great to see the state delay their required submission date for a month or two, until business can return to more normal volumes.

Bars & Restaurants

Allow Delivery — On-premise beer, wine and liquor licensees (bars and restaurants) should be allowed to deliver packaged beer, wine, and liquor to customers who purchase it through phone-in, online, or walk-in ordering. The product must be delivered in the original sealed container. This would blanket authorize curbside delivery, pass-through window delivery, or delivery to any address the licensee would want to cover. This would allow the use of third parties, such as Uber Eats, to handle the delivery. This measure would also authorize the licensee to collect payment at the place of delivery. Must deliver to an adult with a mandatory ID check.

Allow cider and wine growlers — On-premise wine licensees should be allowed to fill containers at their bar with bulk wine or cider and sell it to their customers for carryout in a sealed growler (jug)..

Temporarily Allow Cocktails To-Go — For the duration of the COVID-19 crisis, allow private club licensees to sell liquor by the drink to go. Mimic the growler law and require all containers to be sealed/taped, dated, and labeled. No more than 3oz of straight liquor or two mixed drinks per customer. Customers must be present and witness drinks being made and packaged in order to comply with current liquor by the drink laws.

Grocery Stores & Bottle Shops

Allow Shipping — Off-premise beer and wine licensees (taverns, grocery & convenience stores, etc.) should be allowed to offer shipping of product to customers anywhere in the state with the use of an authorized shipping service that requires an adult’s signature at the time of delivery, such as the alcohol shipping service offered by FedEx.

Allow Delivery — An off-premise beer and wine licensed retailer should be able to offer local delivery of beer and wine. They can now deliver food to the customer’s home, but the customer must drive to the store to pick up beer and wine. This needs to change.

Allow Sharing Among Stores: An off-premise beer and wine licensed retailer should be authorized to purchase beer and wine from and sell beer and wine to another beer and wine licensed retailer anywhere in the state. This would help retailers right now who are stuck with a lot of perishable inventory.

Breweries and Brewery Taprooms

Allow Shipping — Any licensed brewery should be authorized to ship its products to any adult resident anywhere in the state with the use of an authorized shipping service that requires an adult’s signature at the time of delivery, such as the alcohol shipping service offered by FedEx.

Allow Delivery — Any licensed brewpub should be allowed to make local deliveries of beer to customers who purchase it through phone-in, online, or walk-in ordering. This would blanket authorize curbside delivery or delivery to any address the brewpub would want to cover. This would allow the use of third parties, such as Uber Eats, to handle the delivery. This measure would also authorize the licensee to collect payment at the place of delivery.

Reform label approval process — Beer label approval process would be put online and the label registration fee would be eliminated. Breweries would simply fill out an online form with required information. The brewer must attach a scanned copy or digital photo of the label to the form for submission. Once the form and label photo are submitted and received to the WVABCA, the product is considered duly registered in the state and sales may begin immediately.

Allow breweries to have multiple locations — Remove the current limit of one license location per brewery and allow any WV brewery licensee to have multiple brewery locations if they so choose, with each one licensed separately.

Allow Mobile License — Allow WV brewery licensees to acquire a low-cost add-on permit that authorizes them to operate a mobile sales unit (similar to a food truck, but for beer) that is allowed to sell and and dispense beer by-the-glass at any location in the state that would allow it to operate there (typically at public fairs and festivals or on private property).

Allow by-the-glass sales without brewpub license — Any WV brewery licensee that does not choose to operate a restaurant (brewpub) should still be authorized to sell and serve their beer by-the-glass at their brewery taproom. Brewpub licenses should be reserved for those establishments that choose to operate brewery restaurants.

Allow multiple licenses to share one facility — Allowing multiple brewery licensees to share the same brewery facility would encourage business incubation and more gypsy brewers, which would then lead to an increase in new brewery business start-ups.

Distilleries

Allow limited direct sales to private clubs — Any WV mini-distillery or regular distillery should be allowed to direct sell its products to licensed private clubs, locally within it’s home county and within some fixed-mile radius of its location.

Give tax relief on market zone payments — Either remove the 10% market zone tax that WV distilleries have to pay on the product they sell at their distillery tasting room stores or provide a tax credit for it against the state gallonage tax on distilled spirits.

Wineries & Cideries

Allow Delivery — Any licensed winery should be allowed to deliver its wine in sealed containers to customers who purchase it through phone-in, online, or walk-in ordering. This would blanket authorize, but not require, curbside delivery or by-vehicle delivery to any address within their area that the winery chooses to serve.

Allow Sales at Farmers Markets — Any WV farm winery/cidery should be able to set up a sales table or booth at any registered farmers market with a very simple, low cost state permit and without the farmers market having to obtain any alcohol sales permit itself.

Fairs & Festivals

Allow direct importation of non-registered beer — Any WV beer festival permit should come with the authorization that allows it to bring in and sell beers brands from out-of-state breweries that are not already sold in WV. This sales authorization would be only be good for the days of the festival and would only require payment of the beer barrel tax on any untaxed beer brought into the state. Festival must file a simple report listing beers, amounts imported, and pay the beer barrel tax. No other additional fees related to this activity should be charged to the festival.

Allow brewery and winery booths — Any government recognized/authorized fair or festival, that is not primarily a beer festival, should be authorized to allow WV brewery booths (for those breweries having a mobile unit permit) without the fair or festival itself having to obtain a beer festival license. (WV farm wineries have this ability now.)

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Brilliant Stream will add more items to the list as additional reform measures are developed. We appreciate the help of Jeff McKay, proprietor of Huntington’s Summit Beer Station, in the development of several of the measures described in this article.