IMPORTANT REMINDER FOR WHOLESALERS

ABC Rule 15C .0602(a) requires all wholesalers to confirm each retail account’s permit status every time a sale is made to that account.  This requirement also extends to breweries and wineries that self-distribute under their wholesaler permits, meaning that these businesses must confirm their own retail permit status every time a sale is made to their respective retail taprooms. 

This recently became an issue because the North Carolina Alcoholic Beverage Control Commission (“ABC”) canceled thousands of retail permits on July 29, 2022 for failure to pay renewal fees.  Many of our retail clients are learning that their retail permit was canceled when their wholesaler notifies them it has been canceled. 

It is especially important to always check the retailer’s permit status because the failure to do so could result in a notice of violation from the ABC.  Alcohol Law Enforcement can determine a violation occurred by reviewing the retailer’s business records, which each retailer is required to maintain.  These violations are cumulative, meaning that the punishment becomes more severe with each subsequent violation, and fines are usually a minimum of $1,000.  Therefore, it is extremely important to establish a business-wide policy that each wholesaler’s employee, prior to completing a sale to a given retail account, first confirm whether that retailer’s ABC permits are current and active for the location where the sale is being made.  This can be easily accomplished on ABC’s website: https://abc.nc.gov/Search/Permit.

For More:  Scott K. Burger

Updated: September 30, 2022