Wine

June 05.2009

CA: ABC Issues Industry Advisory on Outsourcing Marketing, Compliance and Logistics

Today, CA ABC issued an advisory to respond generally to the explosion of service providers that enable wineries to outsource one or more components of their D2C and D2T channels. http://www.abc.ca.gov/trade/Advisory-Third%20Party.pdf Activities Requiring Licenses: The Department describes when third party providers require a license. In CA a license is required when a business sells (transfers title), solicits a sale or delivers alcohol pursuant to an order. (B&P Code 23025) If interpreted according to its plain language, the definition of sale would require the following types of businesses to obtain licenses to sell wine: delivery companies, credit card companies that offer...

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June 04.2009

Alternating Proprietors Beware: TTB Scrutiny of AP Agreements

TTB now limits how APs can get the job done. Last year, TTB issued Advisory 2008-4. Even if you read this industry guidance for alternating proprietorsand submit an AP agreement following its guidance, your agreement may be rejected. As we all know, an AP agreement must demonstrate that the alternator is really making wine, is truly in control, and is responsible for production, record keeping and taxes. Often an AP will contract with a consultant, labor provider or even the host winery to have some work done, such as a pumpover, cleaning out a line, or moving a barrel. The...

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