Key Considerations for Selling Alcohol to Bars, Restaurants, and Event Venues
The prospect of having your wine on a trendy bistro’s menu or your beer on tap at the local bar is thrilling. But when it comes to selling alcohol to on-premise locations, that excitement needs to be tempered with a healthy respect for the rules. Trust me, nothing can quash your expansion dreams faster than a compliance misstep.
The good news is that by understanding a few key compliance, sales, and promotional considerations, you can avoid trouble and build lasting relationships with your on-premise accounts. Let's look at the core things you need to know so you can grow your brand with confidence and keep the drinks flowing – legally and deliciously.
License Verification: Only Sell Alcohol to On-Premise Locations With the Correct License
Before you celebrate that big bar or restaurant order, make sure you’re dealing with a properly licensed establishment. In practice, that means asking for a copy of their liquor license or license number and cross-checking it against the state’s online database if one exists. Most states, including California, Illinois, Indiana, Texas, Florida, and New York. make it easy to verify a license, and this quick step gives you peace of mind.
Skipping alcohol license verification is simply not worth the risk. If you accidentally sell to an unlicensed venue or even one with an expired license, both you and the buyer could face hefty fines. Or, worse, you might even jeopardize your own license as a producer.
I’ve heard horror stories of small breweries that unknowingly delivered kegs to a bar that had lost its license, only to get tangled up in legal trouble. It’s a nightmare scenario that’s easily avoided by double-checking every time.
Always verify licenses upfront and keep a record of that confirmation in case of TTB audit's or inspections. It’s a straightforward habit that protects your business and keeps your expansion plans on solid legal ground.
Navigating State-Level Regulations for On-Premise Sales
State-level rules determine whether you can sell alcohol to on-premise locations. Let me break down a few key states that often come up in my work:
California: Many wineries and craft breweries in California have opportunities for direct sales to local bars and restaurants, provided they have appropriate permits. For instance, California's Type 17 Beer and Wine Wholesaler license lets you bypass traditional distributors, but strict reporting requirements and storage rules apply.
New York: If your winery qualifies for a farm license, alcohol distribution to bars and restaurants is permitted in New York without a third-party distributor. However, quantities and reporting obligations are tightly controlled.
Florida: The Sunshine State sticks firmly to the traditional three-tier system of manufacturers, distributors, and retailers. Unfortunately, this means that selling alcohol to event venues, bars, or restaurants isn't permitted. You'll absolutely need to partner with a licensed distributor.
Texas: Texas uses a hybrid approach. Small breweries (producing under 125,000 barrels annually) have some self-distribution flexibility but must get a separate permit. Larger producers, wineries, and distilleries generally must work through distributors.
Each state has distinct rules around delivery methods, allowable quantities, required reporting, and payment terms. Never assume compliance is uniform. Before entering a new market, I strongly recommend visiting the state's official alcohol regulatory agency website or speaking with a compliance professional who knows local on-premise alcohol regulations inside and out. Staying informed will help you avoid costly fines and enable you to focus confidently on growing your brand.
Sampling and Promotional Restrictions for On-Premise Locations
Promoting your drinks at the venue is important for sales, but you have to navigate some strict rules. Two areas to watch closely:
Samples and discounts for accounts: Giving a bar or restaurant manager a small free sample of your product is usually allowed, just stick to legal limits and document it. But gifting full cases or giving one venue a special discount crosses the line in most places. Tied-house laws require you to treat all licensed accounts equally, so you can’t give one bar a better deal than others. Keep it fair and by the book when providing anything of value to on-premise buyers.
Consumer promotions at venues: Special events or happy-hour deals featuring your brand can be great for exposure, but they must play by the rules. Many states cap how alcohol is discounted to patrons, for example, banning happy hour or late-night price cuts. If you host a tasting or sponsor a night at a bar, make sure the venue controls all sales so every drink is accounted for and secure any required permits. Be creative, but make sure every promotion is legal so neither you nor the venue gets in trouble.
Building Strong Relationships with On-Premise Buyers
Landing a placement in a bar or restaurant is great, but keeping it there long-term is even better. That comes down to relationships. From my experience, the stronger your partnership with an on-premise buyer, the more success you’ll enjoy.
Here are a few ways to build those relationships:
Consistency and reliability: Deliver on time, every time, with all the right paperwork. Nothing builds trust more than being dependable, and nothing hurts it more than leaving a bar’s taps dry because of a late delivery or missing invoice. Show your buyers that working with you is smooth and hassle-free.
Education and support: Share your expertise with their staff. A bartender who knows the story behind your product can describe the notes in your whiskey will sell more of it. If it’s allowed in your area, offer a small staff tasting or training session. An educated, enthusiastic team is more likely to recommend your brand to customers.
Responsive communication: Stay in touch and be proactive after the sale. If your IPA isn’t selling well at a pub, offer to swap it out for another brew or help the bar come up with a promotion to move it. And if a venue has a big event coming up, work with them on how your drinks can play a part (perhaps a special cocktail or pairing). Showing that you’re invested in their success makes you more than just a vendor – it makes you a valued partner.
Streamlining Compliance with Technology and Tools
Keeping track of all these compliance requirements by hand can be overwhelming. Fortunately, technology can simplify things, saving you time and reducing errors. For example:
Automatic license verification: Software can instantly confirm a bar or restaurant’s license status and alert you if a license expires. This way, you always know you’re only selling to properly licensed businesses.
State-by-state tracking: Good compliance tools track each state’s rules and deadlines. Many will auto-generate required reports and tax filings for each state and remind you when something is due.
Smart reminders and records: Even simple tools like calendar alerts and cloud storage help ensure you never miss a renewal deadline and keep all your important documents organized and accessible.
Working smarter with tech helps you cut down on mistakes and free yourself from mountains of paperwork. That means more time to focus on crafting your product and building sales, with compliance taken care of in the background.
Expand with Confidence by Prioritizing Compliance
Selling alcohol to on-premise locations is a thrilling opportunity, but the only way to do it sustainably is by making compliance your foundation.
The bottom line is that compliance isn’t just red tape, it’s what enables you to grow with confidence. Producers who prioritize doing it right end up building the strongest, most trusted partnerships in the industry. And you don’t have to navigate this journey alone.
At BBG, we pride ourselves on being a trusted partner for small producers ready to scale up. We help businesses like yours navigate the compliance maze so you can focus on crafting great beverages and forging great connections with distributors and retailers. Get in touch today.
Author: Nicole Elizabeth
Nicole Elizabeth is a seasoned expert in Alcoholic Beverage Compliance with over a decade of experience in the wine industry. As the Compliance Team Lead at BBG, she advises wineries on navigating complex regulatory landscapes. Nicole’s previous roles as an Alcohol Beverage Paralegal at Dickenson Peatman & Fogarty and Compliance Specialist at Rodney Strong Vineyards have given her deep expertise in licensing, reporting, and compliance issues. With a background in Wine Studies and Marketing from Sonoma State University, Nicole brings a comprehensive understanding of both the regulatory and business aspects of the wine industry.
