Youngstown Daily Legal News

Bill would allow state liquor stores to sell tasting samples

TIFFANY L. PARKS
Special to the Legal News
Published: March 11, 2014

Officials from MillerCoors, Anheuser-Busch, the Ohio Spirits Association and the Ohio Grocers Association are calling on lawmakers to support a bill that would adjust state law governing the sale of liquor tasting samples.

The proposed legislation, Senate Bill 173, would allow the sale of tasting samples of liquor at an agency store by a trade marketing professional, broker or solicitor.

This bill, sponsored by Sen. Jim Hughes, R-Columbus, would require a trade marketing professional, broker or solicitor to provide written notice at least 10 days prior to the sale to the Ohio Department of Commerce Division of Liquor Control about the date and time of the sampling and the type and brand of spirituous liquor to be sampled at the agency store.

SB 173, which was amended before being unanimously passed by the Senate in December, states that for the purposes of offering for sale tasting samples of spirituous liquor, a trade marketing professional, broker or solicitor must purchase the liquor from the agency store at its current retail price.

The measure, which recently had its third hearing before the House Policy and Legislative Oversight committee, would permit 10 spirituous liquor sample events in a month.

No more than two events could occur on the same day and same day events would have to be at least one hour apart.

In proponent testimony for the bill, Jacob Evans, OSA general counsel, said the association believes enacting SB 173 would continue efforts to “level the playing field as it relates to the tasting of alcoholic beverages.”

Evans also said the proposal provides a true economic benefit to the state.

“The sale of spirituous liquor is solely under the purview of the division of liquor control and its agents,” he said.

“Two and a half years ago, the General Assembly created the opportunity for spirituous liquor to be tasted at state liquor agency stores. These tastings are mirrored after off-premise beer and wine tastings that have been allowed for several years, and on-premise tastings of beer, wine and spirituous liquor.”

Evans noted that Ohio is the sole wholesaler of spirituous liquor and the product is sold in fewer than 500 locations across the state.

“The changes that we are seeking are to ensure that the state is able to responsibly generate revenue for job creation in Ohio,” he said, adding that spirituous liquor profits are transferred to JobsOhio.

“Tastings are essential to the successful sale of this product as it gives consumers the opportunity to try many of the brand or line extensions or products they may not be familiar.”

Joe Ewig, OGA director of government relations/communications, highlighted that the association supported the original concept of allowing spirituous liquor to be tasted at state liquor agency stores during the last budget cycle in the previous General Assembly.

“The language that was adopted was similar to existing law which allowed off-premise beer and wine tastings and on-premise tastings of beer, wine and spirituous liquor, thus bringing all three in line,” he said.

“We would like to further expand this opportunity by creating more tasting opportunities and making it more practical for Ohio’s retailers.”

Like Evans, Ewig touched on the possible financial impact of the bill.

“(It) ultimately will lead to greater sales volume meaning more revenue for state coffers to help aid with job creation,” he said.

“Additionally, we support the inclusion of amendment language added in Senate Agriculture committee that will allow tasting samples of beer, wine or mixed beverages be offered without a charge to consumers on our member’s store premises who have the appropriate D-8 tasting permit,” he said.

“This language will streamline the current sampling process by allowing the brewer or third-party entity to conduct the event which will save our grocers valuable time.”

By passing SB 173, Terrence O’Donnell, counsel for MillerCoors, said manufacturers, suppliers and brokers of beer, wine and mixed beverages would have the opportunity to more “proactively market to potential consumers in a responsible manner.”

Scott Corbitt, director of state affairs for Anheuser-Busch, applauded the bill’s provisions.

“SB 173 would streamline beer sampling events that take place at off-premise locations. Current law allows for those off-premise locations which hold a D-8 tasting permit to conduct sampling sessions for beer using the staff of the permit holder or the permit holder contracting with an outside group to conduct the sampling event,” he said.

“Very few D-8 permit holders have the staff or the ability to conduct sampling events.”

Corbitt joined Ewig in noting that the amended bill would allow a brewer or its designated third party to conduct a sampling event and provide samples of beer at no cost to customers age 21 and older.

“During a time of unprecedented innovation and new products in the beer industry, it is vitally important for all three tiers in the beer industry to give the consumers an opportunity to sample those new products before making a purchase,” he said.

The bill has not been scheduled for additional hearings.

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