As the craft beer industry continues to thrive in California, laws surrounding retail advertising glassware remain an important yet often misunderstood area for both beer manufacturers and on-sale retail licensees. With recent updates extending key provisions, here’s everything you need to know to stay compliant through 2025.

Understanding the Legal Framework

Retail advertising glassware laws are governed by Section 25600.05 of California’s Business and Professions Code. Originally enacted on January 1, 2020, this legislation carved out a specific exception to the state’s general prohibition against gifts or premiums in connection with alcohol sales. Thanks to AB 2971, passed in 2022, these provisions now remain in effect until January 1, 2026.

What the Law Allows

The law permits licensed beer manufacturers and certain other certificate holders to provide up to five cases of retail advertising glassware annually, per licensed retail location. These cases must:

• Contain no more than 24 pieces of glassware per case.
• Feature conspicuous advertising for the manufacturer’s beer.
• Be designed for serving beer, with a maximum liquid volume of 23 ounces per glass.

An on-sale retail licensee may accept up to ten cases of such glassware annually, sourced from multiple manufacturers, as long as they adhere to specific conditions.

Key Compliance Requirements

For Beer Manufacturers

• Direct Distribution: Glassware must be delivered directly to the retailer’s licensed premises by the manufacturer. Wholesalers cannot assist in underwriting or transporting the glassware.
• Reporting Obligations: Manufacturers must submit detailed records to the Department of Alcoholic Beverage Control (ABC) within 30 days of each delivery. This includes specifics such as the recipient’s license number, the number and type of glasses, and their markings.
• Record Retention: Records must be kept for three years and be available for ABC review.

For Retail Licensees

• Usage Restrictions: Glassware received cannot be sold, given away, or returned for cash, credit, or replacement.
• Purchase Independence: Retailers cannot base beer purchases on the receipt of glassware.
• Record Keeping: Retailers must retain records of received glassware for three years at the licensed premises and produce them upon request.

Avoiding Pitfalls

Compliance with this law requires careful adherence to the limits and reporting requirements. Missteps, such as exceeding the 10-case limit or failing to report deliveries, could result in penalties. Both manufacturers and retailers should establish robust tracking systems to monitor glassware distribution and acceptance.

Looking Ahead

With the sunset date extended to 2026, businesses have ample time to adapt to these regulations. However, it’s crucial to monitor for further legislative changes that could impact these provisions.

By understanding the nuances of Section 25600.05 and maintaining clear records, beer manufacturers and retailers can leverage retail advertising glassware to enhance their brands while staying on the right side of the law.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult an attorney or the Department of Alcoholic Beverage Control for specific guidance.