Know Your Retail Wine Sellers' Shipping Rights

06 February 2012 Publication

There has been some confusion regarding which Texas Alcoholic Beverage Commission permitted retailers have the ability to ship wine to consumers. In response, the licensing director of the TABC recently issued a bulletin explaining which alcohol retailer permits allow for the delivery, shipment or transportation of wine throughout the state of Texas to an ultimate consumer for off-premises consumption.

In summary:

  1. A Winery Permit (a "G" permit) holder has statutory authority to deliver, ship or transport wine throughout the entire state to the ultimate consumer, not to exceed 35,000 gallons annually.
  2. An Out-Of-State Wine Direct Shippers Permit (a "DS" permit) holder may sell and deliver wine (up to 35,000 gallons annually) that is produced and/or bottled at the permitted location to ultimate consumers throughout Texas by utilizing a common carrier permittee.
  3. The holder of a Wine Only Package Store Permit (a "Q" permit) or a Package Store Permit (a "P" permit) may deliver wine under the authority of a Local Cartage Permit (an "E" permit) only within the county or the city or town or within two miles of its corporate limits in response to a bona fide customer order. Statewide delivery and/or shipments are prohibited for either permit type.
  4. The holder of a Mixed Beverage Permit (a "MB" permit) or a Private Club Permit (a "N" permit) may only transport or deliver wine if they have a Beverage Cartage Permit (a "PE" permit), and then only from the place of purchase to their licensed premises.
  5. Any other retail permits authorized to sell wine to the ultimate consumer (including a Wine and Beer Retailer's Permit (a "BG" permit), a Wine and Beer Retailer's Off-Premises Permit (a "BQ" permit), and an Airline Beverage Permit (an "AB" permit) are prohibited from making deliveries or shipments of wine within the state.

The TABC further stated that beginning Feb. 15, 2012, any holder of a BG or BQ permit that makes any shipment of wine through use of a Common Carrier Permit holder will be considered by the TABC to have undertaken an actionable offense under the terms of the Texas Alcoholic Beverage Code.

Please contact Gardere Attorneys Dewey A. Brackin (dbrackin@gardere.com or 512.542.7025) or Marcus Schwartz Jr. (mschwartz@gardere.com or 512.542.7012) if you have questions or would like more information about this alert.

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