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Off-site Tasting Bill Introduced for Distillers

By Cari Noga, Michigan Grapevine | April 2, 2009

Yesterday, State Sen. Jason Allen, R-Traverse City, introduced SB 427, which would amend the small distiller license created in 2008 to allow small distillers to conduct tastings of and - significantly, I believe - sell their brandies and spirits at tasting facilities separate from the distillery. A $100 fee would apply, and the distiller would need written permission from the state Liquor Control Commission.

The bill is supported by many Michigan wineries that also manufacture spirits. The Round Barn Winery, Brewery and Distillery in Baroda has two satellite tasting rooms. In a press release, Round Barn said the legislation makes economic sense for Michigan, given the higher tax rates that exist for spirits compared to wine.

"If The Round Barn is allowed to generate these additional sales in its two satellite tasting rooms, then they increase their annual sales and ultimately increase the amount of tax dollars the state collects at the end of the year," the release said. "New jobs could also be created in the areas of production, distribution, sales and marketing of the spirits at these tasting rooms. If the bill passes, it becomes a win-win for both the distilleries and the state." Black Star Farms in Suttons Bay, which has three tasting rooms, has also supported the legislation, as has Grand Traverse Distillery, located in an industrial park southeast of Traverse City.

While the bill was in the works, speculation was that it might encounter some opposition from Class C license holders - bars and restaurants - who pay into six figures for their liquor licenses and might chafe at a paltry $100 fee. The counterargument is that small distillers can only sell their own products, not a whole wall like you'd see at a bar.

I think one of the most significant things about this bill is that it could become a foot in the door for paid wine tastings without the requirement of accompanying food, which some in the wine industry also want badly. As Round Barn notes in its press release, many small distilleries were started by wineries. If SB 427 passes and they can sell one product for consumption on-site, there's the precedent for more to follow.

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