Virginia

In 2018 Virginia ABC transitioned from an agency into an authority. Transitioning from a traditional government agency to an authority creates a hybrid business/public-sector entity which has greater flexibility in setting its own policies, specifically in the areas of human resources and procurement. Some of the organizational structure changes include creating a CEO position and converting the current full-time three-person board to a part-time five-person board similar to a private sector Board of Directors.

Beer and wine are handled through private distributors who generally deliver products to the retailers. Retail-to-retail or retail-to-restaurant distribution is not allowed, as the seller would be acting as a wholesaler, which is not allowed.

Virginia has control spirits at wholesale and retail. Spirits are only sold in state operated ABC stores. Spirits, mixers and a selection of Virginia wines are shipped statewide from the Central Warehouse in Richmond. Virginia ABC ships to its stores and licensee restaurants purchase from the store of their choosing. Virginia ABC operates on a bailment system, where the agency is not charged for the product until it is shipped out of the warehouse.

Laws & Rules:

• ABC Regulations
• ABC Act (Title 4.1)
• ABC Act (Updates)
• Virginia ABC-Related Legislation Effective Starting July 1, 2021.

Required:  Yes

Name:  Wine Importer Industry License

Fee:  $460, plus $195 one-time application fee for initial license

Expiration:  1 year from issue date

A wine importer license authorizes the licensee to sell and deliver or ship wine in closed containers to licensed wholesalers within the Commonwealth and to persons outside the Commonwealth for resale outside the Commonwealth.  Effective Jan. 1, 2022, the annual fee for a wine importer’s license is $460.  The nonrefundable application fee for an initial license increased from $65 to $195 on July 1, 2018.

Resources:

• Wine Importer License Application

Required:  Yes

Fee:  $30

Approval:  2-3 weeks

Expiration:  Does Not Expire

Revision Required:  Tax Class, COLA change

Must be submitted online or mail. Attach cover letter, a copy of the Federal COLA, a copy of label and the Franchise Designation Form. A gift package containing wine or beer for which label approval has been granted may be sold without additional approval by the board.

Resources:

• Beer & Wine Registration Requirements for Labels and Franchise
• Product Label Approval Online
• Online Product Registration User Guide
• Franchise Designation Form rev. 06/2022

Franchise Law:  Yes

Exclusive Territories:  Required

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

A winery must have good cause to amend or terminate an agreement with a wholesaler. Good cause does not include the sale or purchase of the winery.

Good cause includes revocation of a wholesaler’s license, bankruptcy or failure of a wholesaler to substantially comply without reasonable justification with any reasonable requirement imposed by the winery.

The winery may not unreasonably hold or delay consent to the transfer of a wholesaler’s business.

A winery must provide the wholesaler with a written notice explaining the reasons for termination. The wholesaler has 60 days to respond with a plan to correct its behavior.

A winery may not grant the right to sell a specific brand to more than one wholesaler in the same sales territory. Also referred to as “dualing”.

Resources:

• Wine Franchise Act §4.1.-400 et seq. , Code of Virginia
• Franchise Designation Form rev. 06/2022

Reporting: No

Suppliers are not required to report sales or shipments of wine to wholesalers.

Available:  Yes

Fee:  $350 

Expiration:  June 30th of each year

A solicitor salesman—wine and beer permit authorizes the permit holder to represent an out-of-state wholesaler or manufacturer to sell or solicit the sale of beer and wine in Virginia.

Note that a solicitor tasting permit authorizes the permit holder to conduct tastings on behalf of a manufacturer or wholesaler.

Resources:

• Solicitor Salesman Permit Application
• Solicitor Salesman Permit Requirements 
• 3VAC5-30-50
• How to Apply for a Solicitor Tasting Permit

Allowed: No

Virginia law does not allow in-state or out-of-state wineries to self-distribute.

• Circular Letters
• Circular Letter 19-02 Tasting Events at Retail License Establishments (Sept. 2019)
• Circular Letter 15-03 Advertising Using Social Media (June 2015)
• Wholesale Licensee Bulletin (Dec. 2017)
• Industry Resources: Beer, Wine and Cider
• Coupon Guidelines for Manufacturers
• Contest and Sweepstakes Guidelines for Manufacturers
• Beer, Wine and Cider FAQs
• Licensing FAQs