Craft Distillers can continue direct to consumer sales thanks to AB 920.

On September 29, 2022 AB 920 was signed into law allowing holders of a type 74 Craft Distillers license to continue to sell their products direct to consumers through online sales.

The California Department of Alcoholic Beverage Control (ABC) developed a craft distillers (type 74) license to encourage the growth of smaller distilleries within the State. A holder of a type 74 license can produce, manufacturer and rectify distilled spirits. A traditional distillers license does not allow for any direct to consumer sales and requires that the distiller sell through a licensed distribution company. Importantly, this license type allows direct to consumer sales at the distillery which allows craft distillers an opportunity to share their products with a larger audience. Often distributors cannot accept the small orders a craft distiller would be able to fill.

Like so many industries, the craft distilling world was greatly impacted by the Covid-19 virus and the governmental shutdowns that accompanied it. With the shuttering of their storefronts craft distillers could no longer make direct to consumer sales, which essentially meant they couldn’t make any sales. The State legislature stepped in and modified the rights of a craft distillers license to allow direct to consumer sales online. Unfortunately, this change expired March 2022 which inspired AB 920.

With the signing of AB 920 the holder of a craft distillers license is now temporarily authorized to directly ship distilled spirits manufactured or produced by the licensee at its premises to California consumers with a few simple restrictions which were already in place. This is great news for California’s growing craft distillers who can continue to reach a wider audience within the state.

If you have questions about a type 74 license, or any ABC license please contact us today to set up a consultation.