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The Oregon Distillery License Privileges Have Been Changed

The Oregon Distillery License Privileges Have Been Changed

House Bill 2567 passed the Oregon Legislature earlier this year and became effective June 25, 2015.

Inter-distillery Sales Allowed.  Oregon distillery licensees may purchase from, and sell distilled liquor to, another distillery licensee in containers having a capacity greater than one gallon for blending and manufacturing purposes. The provision that allowed distillery licensees to purchase alcoholic beverages for blending and manufacturing purposes from the Liquor Control Commission is removed. A distillery licensee must hold a valid distilled spirits basic permit from the Federal Alcohol and Tobacco Tax and Trade Bureau for the licensed premises.

Tasting Privileges Clarified and Expanded.  Tastings may be of the distilled liquor alone or with a mix of other liquids. If any of the other liquids are distilled liquors, they must be distilled liquors on the list of products approved by the commission for retail sale in Oregon and must be purchased by the licensee at the retail price established by the commission.  Oregon distilleries can now offer tastings of spirits manufactured in Oregon by another distillery. Sales by the drink are not authorized by Oregon’s distillery license.  More than one distillery licensee may use the same premises at the same time for conducting tastings if the premises are a primary production location shared by the licensees (i.e. “alternating proprietors”) or the licenses are owned by the same entity. A distillery retail outlet agent may make sales of approved distilled liquor at locations where tasting is allowed as specified.

Special Event Privileges Clarified and Expanded.  Oregon distillery licensees may obtain special events distillery licenses for events for a period of up to five days.  Special event distillery licensees are limited to hosting such events at the same location to not more than 6 days during a calendar year.  Such licensees may offer tastings or make sales by the drink of distilled liquor that the licensee manufactured in Oregon provided that the spirit is on the list of products approved by the OLCC for retail sale in Oregon.  If the distillery licensee has been appointed as a distillery retail outlet agent, the special event distillery licensee may sell distilled spirits in factory-sealed containers to go at the retail price set by the OLCC for the month of sale.