Mini-distillery, as defined by West Virginia statutes §60-1-5b means an establishment where in any year no more than twenty thousand gallons of alcoholic liquor is manufactured with no less than twenty-five percent of raw agricultural products being produced by the owner of the mini-distillery on the premises of that establishment, and no more than twenty-five percent of raw agricultural products originating from any source outside this state: Provided, That the maximum allotted production amounts shall not exceed the annual incremental production limitations provided for pursuant to section three-a of this article: Provided, however, That a distillery licensed and operating as of the effective date of this section that applies for designation by the Commissioner as a mini-distillery is eligible to be licensed as a mini-distillery without compliance with the requirements for the percentage use of on-premises grown and in-state raw agricultural products.
A person who is licensed to manufacture alcoholic liquors in this state may sell liquors in this state only to the West Virginia Alcohol Beverage Control Commissioner and may sell alcoholic liquors for off-premises consumption when sold at retail at the mini-distillery at the licensed premises as provided by West Virginia Code §60-4-3a which reads:
§60-4-3a. Distillery and mini-distillery license to manufacture and sell.
(a) Sales of liquor. -- An operator of a distillery or a mini-distillery may offer liquor for retail sale to customers from the distillery or the mini-distillery for consumption off premises only. Except for free complimentary samples offered pursuant to section one, article six of this chapter, customers are prohibited from consuming any liquor on the premises of the distillery or the mini-distillery.
(b) Retail sales. -- Every licensed distillery or mini-distillery shall comply with the provisions of sections nine, eleven, thirteen, sixteen, seventeen, eighteen, nineteen, twenty-two, twenty-three, twenty-four, twenty-five and twenty-six, article three-a of this chapter and the provisions of articles three and four of this chapter applicable to liquor retailers and distillers.
(c) Payment of taxes and fees. -- The distillery or mini-distillery shall pay all taxes and fees required of licensed retailers and meet applicable licensing provisions as required by this chapter and by rule of the commissioner.
(d) Payments to market zone retailers. -- Each distillery or mini-distillery shall submit to the commissioner ten percent of the gross sales price or each retail liquor sale for the value of all sales at the distillery or the mini-distillery each month. This collection shall be distributed by the commissioner, at least quarterly, to each market zone retailer located in the distillery or mini-distillery's market zone, proportionate to each market zone retailer's annual gross prior years pretax value sales.
(e) Limitations on licensees. -- No distillery or mini-distillery may sell more than three thousand gallons of product at the distillery or mini-distillery location the initial two years of licensure. The distillery or mini-distillery may increase sales at the distillery or mini-distillery location by two thousand gallons following the initial 24-month period of licensure and may increase sales at the distillery or mini-distillery location each subsequent 24-month period by two thousand gallons, not to exceed ten thousand gallons a year of total sales at the distillery or mini-distillery location. No licensed mini-distillery may produce more than twenty thousand gallons per calendar year at the mini-distillery location. No more than one distillery or mini-distillery license may be issued to a single person or entity and no person may hold both a distillery and a mini-distillery license.
A mini-distillery licensee must register as a Liquor Vendor with the Commissioner. All alcoholic liquor sold in the state must enter the bailment system of supply with adherence to all bailment practices and processes.
A mini-distillery must purchase all alcoholic liquor that is to be sold at retail at the licensed premise from the Commissioner at the same retail price as other licensed retailers. A retail order form is submitted to the Order Department for processing. No alcoholic liquor may be sold or moved from the bonded area to the retail area until product release confirmation has been received from the West Virginia Alcohol Beverage Control Administration.
A mini-distillery licensee may serve complimentary samples of its alcoholic liquor in moderate quantities for tasting on the mini-distillery premises.
A mini-distillery licensee must report monthly to the Commissioner the total gallons of alcoholic liquor produced at the licensed premise. Additionally, the mini-distillery licensee must report monthly to the Commissioner the total retail sales of alcoholic liquor sold at the licensed premise and pay the ten-percent fee.
The privileges, duties and responsibilities for the manufacture, sale or distribution of liquor in West Virginia is detailed in Legislative Rule CSR 175 Series 1, 2, 5 and 6 and authorized by West Virginia Code §60.
Related Forms and Packets:
Mini-Distillery License Packet
Distillery-Mini Distillery Report of Production, Inventory and Sales
Distillery-Mini Distillery Retail Order Form
Vendor Registration Packet
Liquor / Wine Representative Packet
NABCA Price Quote
Bailment Authorization Form
Company eVendor Agreement
Hold Harmless Agreement