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by srothstein
Sun Dec 04, 2016 11:23 pm
Forum: 2017 Legislative Wish List
Topic: This is extra wishful...51% changes
Replies: 28
Views: 3397

Re: This is extra wishful...51% changes

ScottDLS wrote:I have never seen a wine or liquor store that "sells" anything for on premises consumption. I've been in many with blue signs that offer samples. Are any stores that offer samples required to get an on premises license?
No on-premise license needed for samples since they are not being "sold". I am not aware of a liquor store that sells for both on and off premise consumption, but a lot of beer licenses are that way, as are a lot of winery licenses. One problem Texas has is that our business model for drinking is still based on 1935 economics and technology. We need to redo it and hotels, wineries, and beer pubs have really twisted the laws up.

We use a basic three tier model, which means that there is a manufacturer who must sell to a wholesaler who sells to a retailer who sells to the public. Hotels with bars in them, room service, and mini-bars required a rethinking of the retail end, but basically fit in the three tier model. Brew pubs are a whole other animal though since they manufacture and retail, and now are trying to get into some limited wholesaling too. Wineries generally also do all three at one location, including retailing for on and off premises consumption.

I am not up on the latest rulings and how TABC is trying to keep up. They are at least trying, because when I was there they were refusing to put the gun sign information on the public database because it reveals proprietary information (how much of the sales is from alcohol). I pointed out back in 2007 or so that the license application did not match the law and a beer joint could be selling enough for off-premises to drop it below the 51%. I was not able to win that argument at the time. Maybe someone else can have better luck than me. And I guess I should check the license application to be sure it is not already corrected.
by srothstein
Fri Dec 02, 2016 5:55 pm
Forum: 2017 Legislative Wish List
Topic: This is extra wishful...51% changes
Replies: 28
Views: 3397

Re: This is extra wishful...51% changes

twomillenium wrote:To have a 51% sign, the wine store would need to make at least 51% of their sales on the CONSUMPTION of alcohol. I don't know of any wine stores that do this, maybe it was a wine bar.
The problem with this is that the TABC application doesn't ask the question that way and the law says the TABC determination. The application just asks for the percentage of sales from alcoholic beverages and then checks to see if the license is for on-premise consumption. Many places that sell for on and off premise consumption have no realistic way to determine the split between the two.

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