Greenspoon Marder Hospitality, Alcohol & Leisure Blog: Spirit of the Times

Jun 16, 2021

Effective July 1, 2021 new legislation takes effect that redefines and extends additional privileges to craft-distilleries in Florida. Of great importance is the extension of on premise sales privileges by the drink in face to face transactions with consumers, a right in varying degrees, which has been previously granted to craft brewers and wineries in this state, but heretofore denied to distilleries. The interesting distinction however is that this vendor right is granted to the distillery under its distillers license (“DD”) with no exception granted to hold a vendors license (as brewers and wineries do). That is to say, by the drink is permitted under the manufacturing license creating another exception to Tied House restrictions in this state.

To delve into the specifics a bit, the new legislation allows for “by the drink sales” or vendor privileges under two separate craft distillery categories.

The first allows licensees that operate within a “destination entertainment venue” (“DEV”) to hold certain vendor privileges. A DEV is defined in the bill as a venue located in a community development area which (inter alia):

Is owned by any person licensed as a craft distillery located within the venue
It is served by multimodal transportation options
It must be located within a contiguous area of at least 15 acres that contains indoor and outdoor event venues with a capacity of 150 and 1000 people, respectively

Most importantly and among other things, it allows for the sale of distilled spirits produced by other manufacturers for on premise consumption by the drink that are purchased through a Florida licensed distributor. In addition the distiller may sell any of its branded products which it produces for on premise consumption by the drink. It is important to note that this privilege is an exemption from holding a Quota license-that is to say no vendor’s license is issued to the craft distiller-the right is granted under the DD license within the DEV.

The other craft distillery classification is identified in Florida Statue 565.03 and the definition remains more or less the same since the inception of the concept of “craft distillery.” However, there have been significant and beneficial revisions. Craft distillers operating outside a DEV (that is most craft distilleries in this state) may now serve branded product it produces for on premise consumption by the drink in its souvenir shop. Also, the previous limitation of six bottle sales to each consumer for off premise consumption has been eliminated. Craft distillers may now sell as many bottles as they desire from the shop as long as it is within the production capacity guidelines which have also been revised. Craft distilleries may now produce up to 250,000 gallons per calendar year before losing the craft designation and up to 75,000 gallons per calendar year may be sold direct to consumer from the souvenir shop (and the rest sold to licensed Florida distributors). These new on premise privileges will allow for new streams of revenue for Florida craft distillers and will hopefully add to consumer popularity and increased presence of them in this state.

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