Vermont

The  Division of Liquor Control (DLC) issues licenses to private wholesalers in Vermont to deliver beer and wine products to on-premise and off-premise retailers. Vermont is a control state for spirits.

Please Note Title 7, V.S.A. §2(39) defines vinous beverages as not more than 16% alcohol by volume:

“Vinous beverages” means all fermented beverages of any name or description manufactured or obtained for sale from the natural sugar content of fruits or other agricultural product, containing sugar, the alcoholic content of which is not less than one percent nor more than 16 percent by volume at 60 degrees Fahrenheit.

State law allows local jurisdictions to hold public referendums and/or approve local laws or regulations on alcohol sales.

Laws & Rules:

• Department of Liquor Control Regulations
• Alcohol Beverage Statutes, Title 7
• Department of Liquor and Lottery Regulation Update, May 18, 2023

Required:  Yes

Name:  Certificate of Approval for Vinous Beverages

Fee:  $985

Expiration:  April 30th of each year

A Certificate of Approval for Manufacturer or Distributor is required to sell vinous beverages to wholesale dealers.  Applications and renewals must be submitted through the Online Portal launched in 2022. Paper applications are no longer accepted.

Resources:

• Apply Online – Online Portal Information 
• Compliance Alert: Vermont Online Licensing Portal & Changes for Filing DTC Report Due Jan. 15 (Dec. 15, 2022)

Required:  No

Vermont does not require brand or label registration.

Franchise Law:  Yes

Exclusive Territories: Required

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

Once a territory is designated, the territory is exclusive and no dueling is permitted. It is not, however, mandatory for certificate of approval holders and manufacturers to designate a sales territory to a wholesaler.

Notwithstanding the terms, provisions, or conditions of any agreement or franchise, no certificate of approval holder or manufacturer shall cancel, terminate, or refuse to continue a franchise, or cause a wholesale dealer to relinquish a franchise, unless good cause is shown to exist.
With very limited exception, a certificate of approval holder or manufacturer is required to provide the wholesaler with at least 120 days’ written notice of any intent to terminate an agreement. The notice shall state the causes and reasons for the intended termination. The franchisee (wholesaler) is allowed 120 days to rectify any claimed deficiency. The Superior Court, upon petition and after due notice to both parties and the opportunity to be heard, shall decide whether good cause exists.

A wholesaler must give at least 90 days’ written notice to the certificate of approval holder or manufacturer prior to the sale or transfer of it’s interest in a franchise. The notice must state the name of the proposed transferee, along with full details outlining the qualifications of the proposed transferee. In the event the certificate of approval holder or manufacturer wishes to resist the sale they must then petition the Superior Court for a hearing no later than 60 days prior to the date of the proposed sale or transfer. The petition must include the reasons for resisting the sale.

Citations:

• 7 V.S.A. Chapter 023 Beer and Wine Franchises
• 7 V.S.A. § 705 Exclusive Territories

Required:  No

Due to legislation that became effective in 2015, it is no longer required that a seller or distributor report the sale of malt or vinous beverages to a Vermont distributor.

Available:  Yes

Fee:  $70

Expiration:  April 30th of each year

A Solicitor’s License is required to solicit orders for and promote the sale of malt and vinous beverages (7 V.S.A. § 275).

Effective July 1, 2019, a solicitor’s license is also required for a person who, for himself or herself or as agent, takes or solicits orders for the sale of spirits or fortified wines. If a sales representative is currently licensed to solicit orders for beer or wine, their ability to solicit spirit sales would be included into the existing license. When that license is renewed it will include solicitation activities for all three versions of beverage alcohol.

Applications and renewals must be submitted through the Online Portal launched in 2022. Paper applications are no longer accepted.

Resources:

• APPLY ONLINE –Online Portal Information 
• Compliance Alert: Vermont Online Licensing Portal & Changes for Filing DTC Report Due Jan. 15 (Dec. 15, 2022)

Allowed:  Yes

License:  Direct to Retailer Shipping License for Vinous Beverages Required

License Fee:  $250

License Expiration:  April 30th of each year

Label Registration:  Not Required

Excise Tax:  Monthly by the 25th (Some licensees may be eligible to file quarterly.)

Shipment Report:  Annually by Jan. 15th

A manufacturer or rectifier of vinous beverages that is licensed in state or out of state and holds valid state and federal permits and operates a winery in the United States may apply for a retail shipping license by filing with the Department of Liquor Control an application in a form required by the Commissioner accompanied by a copy of its in-state or out-of-state license and $250 annual fee.

A retail shipping license holder, including the holder’s affiliates, franchises, and subsidiaries, may sell up to 5,000 gallons of vinous beverages per year directly to first- or second-class retailer licensees and deliver the beverages by common carrier, the manufacturer’s or rectifier’s own vehicle, or the vehicle of an employee of a manufacturer or rectifier, provided that the beverages are sold on invoice, and no more than 100 gallons per month are sold to any single licensee.

Annual shipment reports must be filed with the Department of Liquor Control and excise taxes must be paid directly to the Commissioner of Taxes. Excise tax returns are due on the 25th of each month. Sales records must be maintained for a minimum of five years from the date of shipping.

Applications and renewals must be submitted through the Online Portal launched in 2022. Paper applications are no longer accepted.

Resources:

• APPLY ONLINE –Online Portal Information 
• Direct Ship to Retail Guidelines
• FILE ONLINE – DLC Direct Ship Vinous to Retailers Annual Reporting Form
• Malt and Vinous Beverage Tax Filing Instructions
• Department of Taxes: Reporting Malt and Vinous Beverages Sold Direct to Retailers
• Malt and Vinous Beverage Taxes Overview
• 7 V.S.A. § 278 Vinous beverage retail shipping license

• Division of Liquor Control FAQs
• “Things of Value” Guidance Bulletin
• Wholesaler Trade Practice Review
• 2019 Legislative change to Vermont’s liquor excise tax