Insights
Publications

New California Law Expands Winery Privileges

7/18/2008 Articles

Governor Schwarzenegger signed into law new provisions that allow wineries to sell wine by the glass and allow customers to buy and consume wine by the bottle at wineries.  There are some twists to the new rules.  The loosened rules apply only to the primary licensed premise and do not apply to tasting rooms operated under a duplicate California winegrower's license, commonly known as a "Dup 02".

The new law allows a winery to do the following at its primary licensed premise:

  • Give or sell tastes of wine to consumers;
  • Sell wine by the glass to consumers;
  • Sell wine by the bottle for consumption in a picnic area or any other area that is part of the licensed premise;
  • Allow consumers to cork and take home any wine in a bottle that has not been consumed.

The rules only apply to activity on the winery's licensed premise.  Often, picnic areas are not included in the premise description for a winery's federal permit and state license.  It would be prudent to check your winery's premise description to ensure it includes picnic areas or other areas where you would like to allow customers to consume wine by the glass or bottle.  If the picnic area is not part of the licensed premise, the winery needs to expand its premise by informing both ABC and TTB of the change.

As a result of the changes, visitors to wine country will have the opportunity to drink larger quantities of wine.  Wineries should consider enhancing training of tasting room personnel to understand how to recognize when a customer is over served and take steps to prevent over service.  Wineries also should consider how to monitor picnic areas and other places where customers may be drinking bottles of wine.

The modifications make clear distinctions between tasting rooms at wineries and tasting rooms at Dup 02 locations.  Dup 02 tasting rooms may only give "tastes" of wine to visitors.  ABC officials have described a "taste" as an amount less than a glass and have defined a taste as a one ounce pour in other contexts.  While it may not be exactly clear as to what a "taste" is, it is clear that a taste is not a glass of wine.

The law known as the "picnic bill" goes into effect January 2009.  It is codified as Business & Professions Code section 23358.  Changes also were made to Business and Professions Code section 23390.

Firm Highlights

Publication

A Summary of New Laws Coming for California Employers in 2024

In 2023, California has adopted several new employment laws either introducing new employee protections or codifying existing practices into state law. With these changes, employers will need to examine and adjust some of their...

Read More
Publication

Steps for the Long-term Success of Your Brand & Business

Family wineries face certain common issues when it comes to succession planning, and there are steps you can take to help ensure the longevity and success of your brand and business. Step 1 &ndash...

Read More
Publication

Regulatory Changes Underway To Address Dwindling California Property Insurance Market

We keep hearing about how difficult it is for our clients to get property insurance these days, both for homes and businesses in Northern California’s wildfire-prone areas. Which, of course, is most of Northern...

Read More
Publication

Life Is Too Short for Bad Wine Distribution Agreements: 10 Key Considerations

If you are like most wine brands, DTC through your tasting room, club, and website can only take you so far. Success usually means accessing the general on- and off-premise markets, and accessing those...

Read More
Publication

Add Value to Your Winery by Monetizing Land Use Entitlements

With today’s emphasis on increasing the bottom line of winery businesses, winery owners often overlook a simple strategy for increasing their revenue and the value of their investment: the land use entitlements process. Wineries...

Read More
Publication

Insurance Market Crushes Wineries and Wine Country Homeowners

We keep hearing about how difficult it is for winery and vineyard owners to get property insurance these days, both for their homes and their wine businesses in California’s wildfire-prone areas. Those who have...

Read More
Publication

Building a Wine Brand With Dana Sexton Vivier

Today's guest will share her experience buying, building, and developing wine businesses. Currently the chief financial officer of Far Niente Wines, which also owns the Nickel & Nickel, Bella Union, and EnRoute wine labels...

Read More
News

Farella 2024 Partner Elevations: Cynthia Castillo and Greg LeSaint

Northern California legal powerhouse Farella Braun + Martel is pleased to announce the election of two lawyers to partnership effective Jan. 1: Cynthia Castillo and Greg LeSaint. “We are thrilled to elevate Cynthia and...

Read More
Publication

Charitable Planning With Guest Stephanie Hood: Navigating Complex Rules and Traps for the Unwary

Welcome to  EO Radio Show - Your Nonprofit Legal Resource . This week, I am delighted to have Stephanie Hood return as my guest. Stephanie is my colleague at Farella Braun + Martel and...

Read More
Publication

Reporting Dispute Claims Within Closely Held Wineries

Many wineries operate as closely held companies, meaning they’re owned by an individual or small group of shareholders, who are often members of the same family. Disputes regarding ownership interests can arise, particularly when directors...

Read More