Arkansas

The Alcoholic Beverage Control Division regulates, supervises and controls the manufacture, distribution and sale of all alcoholic beverages and the issuance of permits, and the regulation of alcohol beverages.  The Alcoholic Beverage Control Administration Division receives applications, processes those applications and, depending upon whether the qualifications are met as established by law and by regulation, the permit may be issued to the applicant.

Definitions:

“Vinous Liquor” means the fermented juices of fruits, except native wine, containing more than five percent (5%) and not more than twenty-one percent (21%) of alcohol by weight. (A.C.A. § 3-1-102)

“Light Wine” means the fermented juice of grapes or other small fruits, including berries, and having an alcoholic content not in excess of five percent (5%) by weight (A.C.A. § 3-5-202)

Laws & Rules:

• ABC Rules & Regulations
• Arkansas Code Title 3 Alcoholic Beverages
• Wine Tax Rates 
• ABC Proposed Rules

Required: Yes

Name: Supplier’s Permit

Fee: $50

Expiration: June 30th of each year

Any out of state supplier of vinous liquor must apply for a Suppliers Permit and pay the initial application fee of $50 prior to selling to an Arkansas wholesaler. Along with the permit application, wineries must also submit a copy of their resident state permit and federal basic permit.

Resources:

• Supplier’s Permit Application & Instructions

Required: Yes

Fee: $15, plus $5 processing fee

Approval: 7 days

Expiration: June 30th of each year

Revision Required: COLA change

The holder of a supplier permit must register any brands and labels online through PRO and submit the following documents: “Manufacturer’s Request for Brand Registration or Change of Wholesaler,” a copy of each COLA, color copy of each label and authorization letter if not the owner. The supplier should fill out the top portion of the state form, and then send it to their Arkansas wholesaler to complete and submit to the state.

Resources:

• Arkansas Brand Registration (online)

Franchise Law: Yes

Exclusive Territories: Required – Exclusive as to entire state

Please review the law in its entirety and consult legal counsel prior to taking any action.

Arkansas does not allow more than one distributor per brand for wine.

Every supplier of spirituous and vinous beverages must complete the brand label registration process and designate one distributor to be the exclusive distributor for such brand or label within the state. Once approved the designated distributor may not be changed or terminated except for good cause.

The Director shall determine good cause after a hearing pursuant to the provisions set out in the Regulation.

Business reasons which may be considered in determining good cause for authorizing a change of wholesalers include:

• A wholesaler’s bankruptcy or serious financial instability, including its consistent failure to pay its debts as they fall due or its failure to meet or maintain any objective standards of capitalization expressly agreed to between the wholesaler and the distiller, manufacturer, importer, or producer, provided such standards are determined by the director to be commercially reasonable;
• A wholesaler’s repeated violations of any provision of federal or state law or regulations, whether or not such violations resulted in official action;
• A wholesaler’s failure to maintain reasonable sales volume of the brand, taking into consideration such factors as the extent of the distiller’s, manufacturer’s, importer’s, or producer’s advertising and promotion of the particular brand, prevailing economic conditions affecting sales generally, or the extent of the wholesaler’s efforts, or lack thereof, to promote a particular brand;
• Any other relevant factors.

Note that some of the rules applicable to the wholesale distribution of wine are not applicable to light wine (not more than 5% alcohol by weight).  The wholesale distribution rules for beer and malt products also apply to light wine.

Resources:

• A.C.A. § 3-2-401 through § 3-2-412 Distribution
• Reg., Title 2, Subtitle C, Sec. 2.16

Required: Yes

Name: Invoice Report

Due Date: Monthly, by the 15th

Every supplier must file a monthly shipment report with the Miscellaneous Tax Section of the Department of Finance and Administration.

Available: No

A salesperson’s license is not required.

License: Allowed

License Fee: $100

Excise Tax: Required

Small farm wineries (wineries producing no more than 250,000 gallons annually) may obtain a “Small Farm Winery” license and sell directly to grocery stores in the State of Arkansas.

Resources:

• Title 2 Subtitle 1 Small Farm Winery Provisions

• Product Displays and Unlawful Inducements Memo (Sept. 11, 2020)
• Director’s Policy Memos
• Alcoholic Beverage Control News
• Alcohol Beverage Tax Descriptions