Crystal Stump (founder and CEO of ABC Consulting and former special ABC Agent from the Alcohol Beverage Control Authority) explains how you can sell specialty wine baskets.
Pour yourself a drink; you’re going to need it!
Who doesn’t like a gift basket? Wine is a great gift for weddings, graduations, birthdays, Valentine’s Day or Just Because. The problem is that a lot of people are out there making these adorable gift baskets that include alcohol, when they aren’t properly licensed. I don’t want to be a Debbie Downer or the Bearer of Bad News, but creating and selling a pretty basket and popping in a few beers or a bottle of wine (when you aren’t properly licensed) is illegal. You can get arrested for this. I am going to explain to you how to do it, legally, the right way.
Selling gift baskets is a great niche (especially during gift-giving season) for you to compete in, but you need to stay compliant and operate within the law. So, if you are going to put together baskets that include alcohol, you’re going to need the proper licensing.
License Type – the only license that exists, in Virginia, for this type of service is called an Internet Wine License (or an Internet Beer License). This license has only existed for a couple of years and prohibits you from having a storefront – you must be strictly online – but you can add the delivery permit to that license privilege, which will allow you to hand-deliver those gift baskets that you create. These baskets can be decorated, include cards and gifts, beer, wine and whatever else you add to your offerings.
Application Process – the Internet Wine license is just a standard retail permanent license. You do have to go through the entire application process, which takes about 45 days. If you don’t have to know how to get a license in Virginia or are unfamiliar with the Virginia Alcohol Licensing process, this link will explain that process. Today’s video is just about the license type (Internet Wine License) and the fact that it exists.
Permission – another important aspect of the gift basket sale is in order to sell alcohol in the baskets, online, you must get brand permission to sell and represent that product. If you don’t have the brand-owner’s permission, you cannot sell those beers and wines. And you need to have enough inventory (of each brand that you are selling) to make a good business.
Reporting – you need to report, monthly, to the ABC Authority (the total sales and where it ships). This license allows you to ship that basket with the products that you have permission to sell/represent. If you add the delivery permit you can hand-deliver the baskets, as well.
Storage – as I said, you don’t have to have a storefront, but you are going to have to have a space for your alcohol inventory – to store that beer or wine. ABC Authority will approve you to store this in a storage unit or even in your house (keep it in mind that it has to be in a specified room, has to be secured and it has to be open to ABC agents…so if you don’t want ABC Agents inspecting your house, maybe your house isn’t the best place to store your inventory). Most people opt to rent a storage unit or industrial space for the inventory for this license type.
Recordkeeping – I am going to remind you that you cannot have that product shipped directly from the winery (or the brewery) to your customer – you need to have the alcohol delivered to you, account for it, and record when it is sold and where it is shipped. The VA ABC Authority is very strict about recordkeeping. Lack of good recordkeeping is a quick way to lose your license and recordkeeping is a service that ABC Consulting does. We do all the monthly reporting for our clients. If you are interested in ABC Consulting doing your monthly reporting for you, we can do that.
If you have more questions about Gift Basket requirements or would like to learn more about the Internet Wine License, reach out or leave a comment. Questions about compliance or laws or changes in Virginia? We welcome them. Let’s talk: 800-785-0161 Meanwhile, have a great day; thank you for watching; cheers!
ABC Consulting was created in 2009 after my retirement from the VA Department of Alcoholic Beverage Control Enforcement Division. Since then, ABC Consulting has grown into a successful team of former VA ABC Special Agents, working for alcohol licensees across Virginia and other states. We also have former Alcohol Tobacco Tax and Trade (known as TTB) agents and inspectors and our team works alongside you and your business for seamless licensing, compliance and training.
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I am trying to educate the ABC community with these videos. There is a lot of misinformation and a lot of missing information and that is what these videos (and my company) try to do – educate and inform about alcohol compliance. So, back to wedding venues!
I often get calls about someone wanting to serve alcohol at their event venue or are looking into opening a wedding venue and are not really sure if they are going to able to serve alcohol. This video will go into the details of what it means to be a venue and how you can serve alcohol at your venue.
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