This week, a bill passed the Washington legislature that will allow a craft distillery to sell more of its product to customers visiting its distillery.

House Bill 1149 has been sent to Governor Inslee to sign in to law, amending RCW 66.24.145 to allow a craft distillery to sell a maximum of three liters of spirits of its own production per person per day for off-premise consumption. The prior limit was two liters per person per day. Importantly, craft distilleries that opt to sell spirits from their premises must be aware that they are required to comply with the applicable laws that relate to retail liquor licensees, such as responsible alcohol sales, as well as the state and federal requirements that apply to distilleries.

Craft distilleries are distinguished from larger distilleries most notably by the amount of spirits produced—a maximum of 60,000 proof gallons per year (WAC 314-28-050)—and the requirement that a minimum of 50% of Washington-grown raw materials be used for production (WAC 314-28-060). The craft distillery industry has experienced steadfast growth since the Washington State Liquor Control Board implemented the license less than three years ago. The passage of 1149 is a clear indication of the need for refinement of the laws that regulate this growing industry. Craft distilleries have the potential to gain a stronger presence in the liquor market as more people look to them directly for unique, local spirits.

Photo of Susan Johnson Susan Johnson

Susan M. Johnson focuses her practice on issues facing the food, beverage and hospitality industries. She counsels beer, wine and spirits producers; retail store, restaurant and hotel chains; sports and entertainment facilities; cruise ship lines; and contract food service management companies on liquor…

Susan M. Johnson focuses her practice on issues facing the food, beverage and hospitality industries. She counsels beer, wine and spirits producers; retail store, restaurant and hotel chains; sports and entertainment facilities; cruise ship lines; and contract food service management companies on liquor licensing, sales, distribution, advertising, administrative violation defense and regulatory matters related to changes in corporate ownership and governance. Susan also works directly with industry associations, in-house counsel and other law firms on complex transactions, litigation consultation and legislative initiatives involving alcoholic beverage issues. Susan is co-chair of the Stoel Rives Food, Beverage & Hospitality group. Since 2014, she has been listed by Chambers USA as one of “America’s Leading Lawyers for Business” (Nationwide) in the Food & Beverages: Alcohol practice area.

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