The winery industry has steadily grown in the last five years, with Statistica projecting a 5.85% growth between 2023-2027. According to the National Association of American Wineries, the industry employs 1.84 million Americans and contributes $276.07 billion to the nation’s GDP.
Due to its significant role in the country’s economy and potential health risks, players in the sector operate in a highly regulated environment. Before getting a green light to run, you need the California Department of Alcohol Beverage Control ‘’ABC’’ licensing.
More importantly, it pays to protect your investment from unforeseen risks by acquiring winery business insurance from a trusted insurance provider.
Various Catalog of Licensing and Permitting Options
The California Department of Alcohol and Beverage provides many licensing options.
Here are a few options that are most relevant to California wineries and related businesses:
Type 85 Limited Off-Sale Wine License
Type 85 is a recent licensing introduction to keep up with the shifting consumer preferences. It, therefore, provides a regulatory framework for licensees who desire to conduct business online, by telephone, or through direct mail.
ABC labels type 85 license as ‘’Off-sale Retail’’.
The type 85 license allows businesses to make sales—online, via phone, or direct mail— from a premise not open to the public and without a wholesaler license.
Type 17 and Type 20 License Combination
Type 17 represents beer and wine wholesalers, while Type 20 represents Off-sale beer and wine. The combined licensing targets businesses without production facilities but are interested in being granted a right to produce wine.
The 17/20 licensing grants businesses the ability to make wine using someone else’s license and the subsequent ability to sell the wine to wholesalers, retailers, and consumers. If you are a small producer, the 17/20 license helps you avoid costs and liability for owning and operating a bonded, licensed winery.
Type 02 ‘’Winery’’ or ‘’Wine Grower’’ License
The type 02 license applies to ‘’wine growers’’ licensed after September 17, 1975. The licensing framework defines a ‘’wine grower’’ as a person with facilities and equipment that converts grapes, berries, and other fruit and is engaged in wine production.
The 02 license is, historically, the most central license for wineries in California. In addition, the Federal Alcohol and Tobacco Tax and Trade Bureau (TTB) permits a wine grower to use the facilities and equipment of another winegrower to produce wine.
Winery Insurance
Producing excellent wine takes time, care, considerable investment, and creativity. That’s why you need winery insurance to protect your production from the garden to the shelf. Winery insurance protects you from exposure to extreme weather, leakage, wine spoilage, liability claims, and chemical drift.
Protect Your Investment With Winery Insurance
Water could damage facilities and equipment in a major flood incident, leading to massive losses. A significant loss could be the end of the road for a small player, highlighting the need for winery insurance.
At Panorama Insurance Agency, we work with multiple insurers to provide a tailor-made package that meets your business needs.
Contact us online or call us at 818.600.9179 for a free quote.
