One of the most frequently asked questions in the industry is: Do I need a TTB permit as a wine brand owner? The answer depends on the nature of your business model and operations.
Many wine brand owners work with producers or contract wineries to create and bottle their products. Typically, a formal agreement is established where the winery produces a finished wine product using bulk ingredients selected by the brand owner. While the winery is responsible for production, the brand owner often retains ownership of the intellectual property, including the brand name, logo, artwork, and packaging.
This type of arrangement is commonly referred to as:
- Contract production
- Contract bottling
- Co-packing
- Custom crush
Does a Wine Brand Owner Need a TTB Permit?
If a brand owner purchases the finished, bottled wine product from the contract producer / co-packer / bottler / custom crush facility, then the brand owner will need a TTB federal basic permit.
A common misconception is that if a wine brand owner does not physically take possession of or hold title to the finished product, they do not need a federal TTB basic permit. However, this is not always the case.
Even if a brand owner company does not physically handle the wine, if your business model involves activities that may generally be associated with wholesaling. This may include the following:
- Determining which dealers will be sold the wine;
- Controlling and paying for the marketing or advertising; and/or
- Setting the price at market for the product.
See TTB’s Wine FAQs here. The specific requirements will depend on how your brand operates within the three-tier system.
If you’re uncertain whether your business needs a TTB permit, consulting with an alcohol beverage attorney can help ensure compliance with federal regulations.
What Does a TTB Wholesaler Permit Allow?
A TTB wholesaler permit authorizes a business to purchase and resell alcohol at wholesale—either to other wholesalers or, where permitted by state law, directly to retailers. This requirement is established under the Federal Alcohol Administration Act (27 U.S.C. 203(c)(1)) and TTB regulations (27 CFR 1.22).
Advertising Considerations
Advertising plays a key role in TTB’s determination of wholesaler activities. TTB regulations cover advertising, including social media promotions—so brand owners should ensure compliance with TTB rules and policies when marketing their products.
To determine whether your wine brand needs a TTB wholesaler permit, it’s best to review your business operations carefully and consult with a professional to ensure compliance.
How Can Lindsey Zahn P.C. Assist Your Wine Business with a TTB Permit Application?
At Lindsey Zahn P.C., we assist wine businesses in navigating the TTB permit application process with precision and efficiency. With extensive experience handling federal alcohol beverage permits, we are well-versed in the complexities of TTB regulations and application requirements.
Our firm can help identify potential issues before submission to avoid unnecessary delays and ensure a smooth approval process. Additionally, we provide guidance on regulatory compliance, helping your business stay in full compliance with alcohol beverage laws.
If your wine company is seeking assistance with a TTB permit application or has regulatory concerns, contact Lindsey Zahn P.C. today for a consultation to discuss how we can support your business: : info@zahnlawpc.com or (929) ZAHNLAW (929-924-6529).