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Celebrating Bourbon Heritage Month by Understanding the Law
For a full month every year, America celebrates the country’s native spirit. It would take over 200 years from the invention of bourbon for the alcohol to be granted its own month, but the wait was certainly worth it. As we celebrate a true native of our state this September, it’s important for retailers to understand the Vintage Spirits law in Kentucky.
Obtaining a license to sell alcohol in our state requires a bit of knowledge in the area of business law. For this reason, many bar owners and others in the industry defer to an attorney when dealing with liquor laws in Kentucky. However, it’s still important for entrepreneurs to understand the laws that apply to their industry.
If you’re hoping to take advantage of our state’s Vintage Liquor law, there are a few things you should know.
How Does the Law Work?
One near constant in American law is that it’s illegal to sell spirits without a license. The Vintage Spirits law changed this by allowing licensed retailers to purchase alcohol directly from private citizens. However, it’s not as if they can just go purchase a 12-pack of Budweiser from someone — and considering the high availability of that beer, why would they want to?
Instead, the law allows the purchase of spirits as long as they’re still in the original packaging, not owned by a distillery, and cannot otherwise be purchased from a licensed wholesaler in our state. When the law first passed, many people thought it would apply to decades-old bottles of liquor that had been safely stored and later discovered by dedicated “treasure” hunters.
However, this is far from the case. An in-depth reading of the law shows that much more recent releases may qualify as “vintage” under the alcohol friendly statute. For instance, imagine a rare bottling that sold out before making it into retail locations. Since it meets the requirements of “vintage” under the law, a retailer could purchase it from an unlicensed individual.
Potential Issues Retailers Might Encounter
This Bourbon Heritage Month will no doubt be filled with retailers selling vintage, antique, and rare spirits from their establishments. However, there is some vagueness behind Kentucky’s law regarding vintage spirits. Retailers very often encounter issues — or at least have questions — involving what alcohols fall into the vintage category.
Similarly, retailers are frequently confused regarding what constitutes being “available through a wholesaler” under the law. If a spirit can be purchased from a licensed wholesaler in the state, it likely doesn’t qualify. However, there is some vagueness regarding who might be regarded as a wholesaler. Additionally, what happens if the alcohol turns out to be fake?
Unfortunately, there are a lot of questions that retailers are unable to answer. While the law has greatly expanded bourbon tourism in our state — which will no doubt kick into high gear as Bourbon Heritage Month is upon us — it’s also created potential pitfalls for antique and rare bourbon retailers who don’t fully understand the law.
How to Stay on the Right Side of the Law
The best way to celebrate Bourbon Heritage Month is to stay on the right side of Kentucky’s Vintage Spirits law. First, retailers should make sure they’re properly licensed and registered to both sell alcohol and participate in the vintage spirits program. It’s also important to verify seller identity, document transaction details, and authenticate spirits.
Unfortunately, this is far from the only tedious set of requirements that retailers have to follow. However, the extra work is certainly worth it when you consider the economic boon provided by the law — along with the improvement to brand reputation that comes with offering rare and antique liquors. Therefore, always stick to the following steps:
- Maintain accurate records and inventory management
- Clearly label and display vintage spiriates separately from other products to avoid confusion
- Ensure all sales of vintage spirits occur in-store and go directly to consumers. Selling online and shipping are not allowed
- Prepare for inspections and always cooperate with inspectors
- Train all staff members involved in the purchase, handling, and sale of vintage spirits
- Engage in ethical business practices in order to protect your good reputation
- Seek professional guidance to stay on the right side of the law
Clearly, maintaining legality under Kentucky’s Vintage Spirits law is no easy task. This is why so many liquor retailers opt to work with attorneys who understand this statute and others like it. From having a legal professional register for the program on your behalf to maintaining appropriate documentation, you can save a lot of time by working with an attorney.
Understanding Compliance and Enforcement
Plenty of people were excited about the Vintage Spirits statute being signed into law. As retailers delved more into the language used in the legislation, they became even more excited since the law applies to more than just vintage alcohol. While there may be some gray area and uncertainty under the law, it’s important not to try to push the limits of statutory requirements. That’s because state authorities are serious about compliance.
In fact, the Kentucky ABC conducts inspections to ensure compliance with appropriate regulations. They may even inspect inventory and records at licensed retail locations. If you’re found to be in violation of the Vintage Spirits law in Kentucky—even during Bourbon Heritage Month—you could face serious fines and the suspension or revocation of your license. Put simply, compliance with Kentucky spirits laws is of absolute importance.
At the Law Offices of Shannon C. Smith, PLLC, our dedicated team of attorneys has extensive experience assisting alcohol businesses with compliance. Contact us at 859-414-0543 for a free case evaluation.
