Distribution and Sale Laws/Regulations

[BBdude]

Hi All,

First time poster, long-time lurker. I did some searching, but couldn't find what I was looking for. Since this is, in my opinion, a beginner question, I thought this was the right place for it.

Does anyone have information on the laws governing the sale and distribution of beer in the great state of PA? I've searched the general laws on the various PA.gov sites, but a few specific questions:

- Say I won a beer tasting competition and the local bar down the road wanted to either (a) buy a few sixtels from me, or (b) I offered the local bar a sixtel or two to put on tap at no cost (save for them returning my sixtel). Is a permit for this type of transaction required (sans any tax requirements for recording the sale)?
- If the above scenario is generally okay without any permits, is there any FDA rules I must comply with?
- Any other regulations I should be aware when sharing/selling sixtels out of my garage?

Just curious about the legalese governing our fine craft. Thanks in advance.

 

[Yooper]

Selling or bartering homebrew is illegal in all circumstances.

To sell any at all requires being licensed as a brewery.

 

[edroberts]

The American Homebrewers Association has a link to homebrew statutes for each state. It may be of help for you.

www.homebrewersassociation.org/homebrewing-rights/statutes/

That said, illegal to sell unless you are licensed.

 

[Yooper]

Here's a brief explanation of homebrewing laws in PA:

Pa. Stat. tit. 47, §4-492
It shall be unlawful--
(1) Manufacturing Without License. Except as provided herein, for any person, to manufacture malt or brewed beverages, unless such person holds a valid manufacturer's license for such purpose issued by the board. Malt or brewed beverages may be produced by any person without a license if such malt or brewed beverages are produced not for sale and total production does not exceed 200 gallons per calendar year. Malt or brewed beverages produced in accordance with this paragraph may be used at organized affairs, exhibitions, competitions, contests, tastings or judging provided it is not sold or offered for sale.

 

[Sammy86]

i.e. You can't sell Homebrew period.

 

[okiedog]

In order to sell or trade beer, you must have a license and pay federal taxes on it to the TTB and your State alcoholic beverage control. There are hefty penalties for selling beer illegally. As for giving beer to a Pub or any other retail business (liquor store, etc), they have restrictions on sources of alcohol for taxable accountability. Not to discourage anyone from going "pro", but you wouldn't believe all the paperwork you need to file with the TTB! http://www.ttb.gov/beer/index.shtml

 

[madscientist451]

I'm also in PA and have toyed with the idea of opening a Nano brewery.
To answer your specific questions, you have a license to sell alcoholic beverages in PA. A licensed establishment can only obtain the alcoholic products they sell from other state licenced business. So a bar can't buy kegs from a Nano brewery just over the state line for example, or a homebrewer , no matter where they are. Your brewery has to pass state and federal inspections just like you were producing food items.
I don't know for sure, but I suspect there are regulations about giving beer away for free, except to guests at your house. A brewery in PA also has to be connected to a municipal water supply. No private wells are allowed.
Its too bad they didn't put brewing as a business in the US Constitution. The founding fathers probably never envisioned the control state and local governments want to have over the citizens.
Drop me a line if you want to discuss opening a nano brewery in PA.
Meanwhile, relax and enjoy your beer, Cheers!

 

[BBdude]

Thanks, all. This is really great stuff.

So if I gave a sixtel to a local bar and they sold it to patrons and I received no compensation / gifts in return, would I be within the confines of the law? Based on what's been posted, it seems I would be.

EDIT: Appears I'm wrong ... all of us posting at once

 

[Yooper]

Thanks, all. This is really great stuff.

So if I gave a sixtel to a local bar and they sold it to patrons and I received no compensation / gifts in return, would I be within the confines of the law? Based on what's been posted, it seems I would be.

No. You would be breaking the law, and the bar who sold it to patrons would be committing a felony. It is absolutely illegal for him to serve (even for free) homebrew, and if he's caught he will lose his liquor license as well as face federal tax evasion charges and the like.

 

[madscientist451]

I did a little digging around and it looks like you can give away alcohol for free in PA, however it doesn't say anything about homebrew.

I found the excerpt below at this website:

http://www.lcbapps.lcb.state.pa.us/...y.asp?opinion_year=2011&opinion_sequence=202:



If an unlicensed restaurant wanted to host a dinner and provide wines from one (1) wine company or one (1) limited winery, the wine could be provided for free. An unlicensed establishment is permitted to give away free alcohol. The Liquor Code does not limit the amount or type of alcohol that an unlicensed establishment may give away. However, there cannot be any payment or purchase required or associated with the offer of free alcohol at unlicensed premises. Put differently, the alcohol must truly be free and cannot be predicated upon the purchase of a meal, an admission ticket, donation or payment of any other fee, i.e., anyone, not just a paying customer, could ask for and receive the complimentary drink. Otherwise, the unlicensed establishment could be charged with selling alcohol without a license in violation of sections 491(1) and 494 of the Liquor Code. [47 P.S. §§ 4-491(1), 4-494]. If the establishment in question requires the purchase of anything to obtain a free drink, it would be in violation of the Liquor Code.

 

[Bobby_M]

Section 492(1) of the Liquor Code allows individuals without a
manufacturer’s license to produce up to two hundred (200) gallons of malt
or brewed beverages for personal use, which may be used at organized
affairs, exhibitions, competitions, contests, tastings or judgings, provided it
is not sold or offered for sale. [47 P.S. § 4-492(1)].

I think this is pretty clear. Personal use and it cannot be offered for sale. There's no splitting hairs between who's actually doing the selling.

 

[Natdavis777]

A possibility is that a local brewery holds a homebrew competition, and the winner will have their recipe brewed at the brewery. My friend did this @ The Ram whilst he was the head brewer. He held homebrew competitions with certain guidelines each year (one year is was a session IPA, another had to use 20% rye) and whomever won got to brew their recipe with Andrew (through The Ram) and it was put on tap. Not sure how PA guidelines are on that statue, but I live in the last state that prohibits alcohol sales on Sundays and we are able to do that so....

 

[watermelon83]

Couldn't the bar offer his beer at a tasting? Or as a tasting offering on a longer term basis? I realize neither he nor they can charge, which will probably drain the keg in short order, but still.

 

[beergolf]

A possibility is that a local brewery holds a homebrew competition, and the winner will have their recipe brewed at the brewery. My friend did this @ The Ram whilst he was the head brewer. He held homebrew competitions with certain guidelines each year (one year is was a session IPA, another had to use 20% rye) and whomever won got to brew their recipe with Andrew (through The Ram) and it was put on tap. Not sure how PA guidelines are on that statue, but I live in the last state that prohibits alcohol sales on Sundays and we are able to do that so....

That is totally different. A licensed brewery is brewing the beer, just using the winners recipe. Perfectly legal. A home brewer cannot in any way sell beer.

This idea seems to pop up on a regular basis and then the armchair lawyers try to come up with ways to bypass the law.

Home brew is just that. Home brew and it cannot be sold.

 

[Natdavis777]

That is totally different. A licensed brewery is brewing the beer, just using the winners recipe. Perfectly legal. A home brewer cannot in any way sell beer.

This idea seems to pop up on a regular basis and then the armchair lawyers try to come up with ways to bypass the law.

Home brew is just that. Home brew and it cannot be sold.

Im not trying to be an arm chair lawyer nor bypass the law. Just trying to provide a way for the OP to get his beer to the public by legal means....

 

[Sammy86]

To answer your specific questions, you have a license to sell alcoholic beverages in PA. A licensed establishment can only obtain the alcoholic products they sell from other state licenced business. So a bar can't buy kegs from a Nano brewery just over the state line for example, or a homebrewer , no matter where they are. Your brewery has to pass state and federal inspections just like you were producing food items.

So in PA, only PA distributors can sell to PA businesses? What happens if the distributor doesn't carry the delicious beers of the mid west and west coast? You guys have any access to it?

 

[Brew_Dude41]

So in PA, only PA distributors can sell to PA businesses? What happens if the distributor doesn't carry the delicious beers of the mid west and west coast? You guys have any access to it?

Having grown up in PA I can tell you it is actually worse than it sounds. In Pa, you have to go to distributors to buy your beer, and then a separate state store for your wine and liquor. There is no going to the gas station or supermarket to get a six pack, and when you went to the distributor, everything was in cases. It was only 6 or 7 years ago but there was not alot getting in, but there was plenty of local options. Because everying was in cases, if you wanted a sixer of something--just to give it a try--you needed to find a bar that had what you were looking for, and pay their mark up.
Now that may have loosened up over the past few years, but you couldn't get any alcholol on Sundays unless you were at a resturant.

 

[beerenstein]

You guys are so lucky. We can only brew up to 15 gallons per yearly quarter in Alabama. ..

 

[okiedog]

Now that it's legal to homebrew beer there, you Alabama homebrewers need to push to get that ridculous limit changed.

 

[okiedog]

As for giving away homebrew in PA, you need to contact your state alcohol control board directly. They can tell you exactly what you can and cannot do regarding homebrew.

 

[beerenstein]

Now that it's legal to homebrew beer there, you Alabama homebrewers need to push to get that ridculous limit changed.

I agree. Though, it may be too early to start a huge movement. Just happy to legally brew now, lol. Besides, I brewed that 15 gallons half a year ago. It's just been fermenting that long. This other 10 gallons was started last quarter. Lol.

 

[darkhollow]

I'm also in PA and have toyed with the idea of opening a Nano brewery.
To answer your specific questions, you have a license to sell alcoholic beverages in PA. A licensed establishment can only obtain the alcoholic products they sell from other state licenced business. So a bar can't buy kegs from a Nano brewery just over the state line for example, or a homebrewer , no matter where they are. Your brewery has to pass state and federal inspections just like you were producing food items.
I don't know for sure, but I suspect there are regulations about giving beer away for free, except to guests at your house. A brewery in PA also has to be connected to a municipal water supply. No private wells are allowed.
Its too bad they didn't put brewing as a business in the US Constitution. The founding fathers probably never envisioned the control state and local governments want to have over the citizens.
Drop me a line if you want to discuss opening a nano brewery in PA.
Meanwhile, relax and enjoy your beer, Cheers!

Sorry for posting to such an old thread. I was shocked learning about private wells restriction. Especially in locations like Bedford PA where would you find municipal water supply!? Is it still applied? My farm is in Bedford PA, it has such nice water spring, and I'm thinking to get a license and start nano-brewery. But my spring is the only source of water around here.

 

[madscientist451]

In Maryland, you can get a "farm brewery" license, but unless its been changed, PA still says you need to have municipal water. I don't believe wineries have the same restriction. Also, in PA you have dry townships, where theoretically the township can block a winery or brewery but its OK for the state monopoly liquor store to locate there.
Many things about breweries in PA have been changing in the last few years, there's a chance the water supply issue has been changed as well.

 

[darkhollow]

In Maryland, you can get a "farm brewery" license, but unless its been changed, PA still says you need to have municipal water. I don't believe wineries have the same restriction. Also, in PA you have dry townships, where theoretically the township can block a winery or brewery but its OK for the state monopoly liquor store to locate there.
Many things about breweries in PA have been changing in the last few years, there's a chance the water supply issue has been changed as well.

I hope they easied the rules. There is Olde Bedford Brewing which I believe has the farm. Not sure if they brew in it or in the bar. So, did you give up the idea of opening a nano brewery in Bedford PA? I'm from Bedford as well and thinking to start the process of getting a license. Any suggestions? Maybe you know some local lawyers who could help?

 

[madscientist451]

Yeah, Old Bedford brewing has been running for a few years out of an old strip mall.
Right now, opening a brewery won't work for my current/future plans, but you never know, sometimes things change....