Washington liquor laws generally prohibit breweries, wineries, distilleries, and specified other licensees from giving liquor to any person without charge. However, certain liquor licenses and permits issued by the Liquor and Cannabis Board (LCB) authorize the licensee or permit holder to offer tastings, samples, or complimentary liquor to a customer or guest.
A current LCB rule provides that specialty shops, wineries, breweries, and craft distilleries acting as a retail licensee, providing free tastings to the public, are prohibited from using any term that implies the product is free in their advertising for such events. The current LCB rule also provides that beer, wine, or spiritous liquor may not be advertised, offered for sale, or sold by retail licensees at less than acquisition costs.
The following specific statutory advertising restrictions, or limited authorizations for advertising, apply to the licensees and permit holders engaging in these activities:
Liquor licensees and liquor permit holders who are currently authorized to offer free tastings or samples of beer, wine, spirits, or other liquor without charge to the public, or to provide complimentary beer, wine, spirits, or other liquor to customers or guests, are granted authorization to advertise to the public that, as applicable, the licensee offers tastings or sampling for free without charge, or provides complimentary beer, wine, spirits, or other liquor to customers or guests.
Any such advertising may not be targeted to or appeal principally to youth.
The following liquor licensees and permit holders are identified as the intended licensees affected by the bill: domestic breweries; microbreweries; domestic wineries; distilleries, craft distilleries, and their licensed tasting rooms; grocery stores with a tasting endorsement; beer and wine specialty shops; spirits retailers who participate in the responsible vendor program; combination spirits, beer, and wine license holders who hold a grocery store tasting endorsement or who participate in the responsible vendor program; interstate common carriers; hotels; motels; day spas; bed and breakfast lodging facilities; short-term rental operators; and all liquor licensees authorized to serve beer on tap or wine for consumption on the premises.
The following restrictions and more limited authorizations are removed:
It is specified that nothing in the bill is intended to: (1) affect or alter any time, place, or manner restriction that applies generally to all liquor advertising and that is imposed by the LCB in rule; (2) authorize a liquor licensee or liquor permit holder to offer, serve, or provide a type or amount of beer, wine, spirits, or other liquor for free without charge that the licensee is not already authorized to offer, serve, or provide to a person for free without charge; or (3) restrict any advertising that was expressly authorized in Washington liquor statutes as they existed on January 1, 2024.
A technical change is made to strike an obsolete reference to a temporary license fee waiver for the hotel license, which is no longer in effect.
(In support) The bill helps modernize laws to help wineries and other licensees in their operations. Under current law, a winery may provide free or complimentary samples. This is a critical way for the over 1,100 wineries in Washington to responsibly interact with a visitor at the winery, enable visitors to experience the winery's wine, possibly purchase wine to take home, and hopefully choose that winery's wine or another Washington wine the next time they make a purchase. However, currently wineries may not advertise or promote the opportunity of visitors to taste a free or complimentary wine. This bill changes that restriction and removes what can be a confusing conflict in the law about what is permissible and what is restricted with advertising and promotion. Licensees are confident they can professionally and tastefully handle this proposal for permissible advertising. Licensees do not want to be penalized for advertising something that is perfectly legal to conduct. This bill changes no restrictions on how sampling may be conducted. Complimentary wine tasting often decreases overall consumption on the premises; when people pay for a tasting, they tend to consume more. This bill is a safe and responsible approach. Licensees still pay use tax on complimentary samples. The nature of the intended advertising is innocuous. For example, a winery wanted to offer and advertise complimentary tastings for veterans on Veterans Day, but could be penalized for that. The burden of proof is low for issuing violations. Oftentimes, penalties can escalate quickly, even getting to a point where licenses can be revoked because of a phrase that was uttered on social media or marketing materials that may have been out of the licensee's control for a period of time. Licensees do not want to be penalized.
(Opposed) None.
Benjamin Williams; and Josh McDonald, Washington Wine Institute.