News Blog / Monthly Archives: September 2017

Understand Texas’ Three-Tier System for Alcoholic Distribution with the Help of a Liquor License Consultant in Dallas, TX

In response to the end of the Prohibition Era, the state of Texas adopted a three-tier system to regulate alcohol distribution and sales. This three-tier system clearly defines the roles of the three separate entities of the industry—the breweries, distributors and retailers—while also creating a path for the efficient collection of taxes by the state. With the help of a liquor license consultant in Dallas, TX, you can better understand the individual tiers of the system, and how they each play their role to keep the marketplace fair and safe for all.

Tier 1 – Breweries, wineries and distilleries

Manufacturers that produce alcoholic beverages are in the first tier of the system. This group is responsible for crafting a quality product and packaging the product for safe transportation. These manufacturers enter into contracts to have their product picked up and delivered by licensed independent distributors, which is the second and arguably most pivotal tier in the system.

Tier 2 – Licensed distributors and wholesalers

It is the distribution tier that plays a key role in ensuring that the entire system works. The distribution warehouse stocks and stores the packages that are to eventually be delivered to retailers, and they are responsible for the marketing of the product to the different retailers as well. Distributors are also in charge of collecting and remitting the state excise tax. These distributors and wholesalers are then responsible for the final delivery to the vendor.

Tier 3 – Retailers

The retailers are the last stop in the three-tier system before the product reaches the end consumer. Retailers must have the shelf space required to stock the products, and must also maintain enough storage space for deliveries from distributors and wholesalers. The retail group is also responsible for the collection of the sales and/or mixed beverage tax enacted by the state that is to be charged to their patrons.

These three tiers were created to draw distinct lines between the several moving components that are a part of the alcohol industry, which in turn adds stability and fairness to the post-Prohibition marketplace. The system has worked well, and has helped to reduce the extreme marketing and sales ploys that dominated the pre-Prohibition era. This system has also helped to stave off anti-competitive practices that result from “tied-house” collaborations between established breweries and retailers, which make it harder for new up-and-coming breweries to break into the industry and get their footing.

If you would like to learn more about how the three-tier system works, and how it relates to your specific business, contact us at LaBarba Permit Service. Over the past 52 years we have developed a great working relationship with both the Texas Alcoholic Beverage Commission and the retailers from all over the state for whom we have secured licensing. If you are in need of a premier liquor license consultant in Dallas, TX, give us a call today. We look forward to assisting you in making sure your business is fully compliant with every aspect of Texas liquor laws!

Rosé (& More) All Day: Millennials Are Reshaping the Wine Market

Let’s talk wine for a minute. It’s so much more than a last-minute hostess gift! And as it turns out, those trendy Millennials might not just be reading Wine Spectator in attempt to impress their curmudgeonly fathers-in-law. Wine is cool again, didn’t you know?

No, not this.

At least, that’s the takeaway from a recent Wine Market Council report, which shows that Millennials are about to outpace Boomers in wine consumption. The old guard still drinks more per sitting, but the young guns are quickly catching up.

In typical Millennial fashion, this generation of drinkers doesn’t play favorites with their vintages. They’re open to all varieties, and not constrained by traditional regional stereotypes. This openness to experimentation has driven diversification and quality improvements across the entire market. Interestingly, Millennials are actually less likely to buy wines from California (historically Americans’ favorite) than their older counterparts.

And let us not neglect to mention the rise of rosé! French exports have shown consistent, double-digit growth for more than a decade. I mean, come on – it’s Millennial pink and everything!

Yes, this.

So if you’re in the business of wining & dining, keep an open mind as you stock your cellar – your customers just might be getting more adventurous.

Whether you want to jump on the #yeswayrosé bandwagon, or just ride the craft beer wave, you’re going to need to get a Texas liquor license – so contact us today!

SOURCE: Las Vegas Sun.

Understand the Implications of Texas’ New “Beer Bill” with the Help of a Licensing Agency in Dallas, TX

Any time a law that affects the legislation of alcohol licensing is updated, breweries immediately begin trying to figure out if the changes will have a direct impact on their business. Unfortunately, as is the nature of verbose regulations and legislation, the language can sometimes be hard to understand, and it might still be unclear just what the changes mean for you and your brewery. With the help of a licensing agency in Dallas, TX, you can learn what the changes in the new bill mean, and subsequently what they will mean for your business.

Examining the effects of the new bill

Earlier this year, the Texas Senate passed legislation that is intended to draw a more distinct line between craft breweries and the larger brewery companies. According to House Bill 3287, more commonly referred to as the “beer bill,” any independent brewery that produces more than 225,000 barrels independently per year would be placed in the Texas Alcoholic Beverage Code’s three-tier system, which would impact their ability to sell beer on their premises. Additionally, if a small brewery is a part of a merger or acquisition with a larger brewery, they would no longer be deemed a small business, and would fall under the three-tier system if their combined output was more than 175,000 barrels. Brewers that make less than the 225,000 barrels are still allowed to sell 5,000 barrels annually in their taprooms, but this number does represent a potential cap in sales for business owners.

For most small breweries, though, this bill will have a very limited effect in the short term. For the most part, only about 3 percent of breweries across the nation produce more than 15,000 barrels, and very few small brewery taprooms have sales that exceed 5,000 barrels. The state has said that the bill is actually intended to protect the small independent companies from the large brewers, as this law would make the larger conglomerates hesitant about an acquisition at the very least.

Alcohol and food sales

Another change that will go into effect on September 1 when the law passes is the increase in the threshold of alcohol sales allowed with a food and beverage certificate. Before the updated law, at least 50 percent of gross receipts had to be attributed to food sales, leaving only 50 percent for alcohol sales. Now, gross receipts from food sales will be a part of a 60/40 split in favor of increased alcohol sales, allowing owners that already have this designation to do more with their food and beverage certification.

Although only a few changes were made, it could be difficult to understand the new legislation and its thresholds and how the updated law will affect your business. That is exactly why our team at LaBarba Permit Service is at your service—to help you understand all of the complicated legislation, as well as how to make sure that your business is in compliance and has obtained all of the necessary permitting. Give our licensing agency in Dallas, TX a call today to make sure you are as informed as possible on how the changes will affect you, and to make sure that your brewery is in good standing both now and in the future.

LaBarba Permit Service: Cutting Red Tape Since 1965℠