When the clock strikes midnight on New Year’s Eve, some fairly significant changes will take effect in California for wineries. SB 1013, which passed last year, expands the definition of “beverage” to include wine and distilled spirits, effective 1/1/24. CalRecycle recently held a webinar where they walked attendees through the changes in detail. In this post, we summarize the changes specifically for wineries that are shipping direct-to-consumer. Currently, there is no exemption for wines or spirits labeled before July 1, 2025. While the Wine Institute is working on legislation to create an exemption for wines labeled before January 1, 2024, wineries and distilleries should start including the required labeling on all applicable containers as soon as possible.
The definitions of “manufacturer” and “distributor” within the BCRP are different than the definitions of the same terms under the California Department of Alcoholic Beverage Control (ABC) regulations. In the webinar, CalRecycle clarified that Beverage Manufacturers are anyone who does any of the following:
Distributors are anyone who does any of the following:
So, both out-of-state wineries and in-state wineries will qualify as distributors for their DTC sales to California residents. Out-of-state DTC wineries will also be manufacturers, and in-state wineries will also be manufacturers for their DTC sales to California residents, unless they do not do their own bottling. However, wineries that use 3rd party bottlers will need to complete paperwork in coordination with their bottler to transfer the beverage manufacturer responsibilities back to the winery. The registration form for wineries to register as beverage manufacturers and distributors for wine shipped to consumers is available.
CalRecycle encouraged wineries to complete the registration process well in advance of the January 1 deadline. After completing the form, which asks several questions about your business and the types of activities that you do, CalRecycle will determine whether your business will qualify as a distributor, manufacturer, or both, and will assign reporting identification numbers accordingly for reporting and paying CRV and/or processing fees. Producers must register with the state agency administering the program, CalRecycle (there’s an online form at the Cal Recycle site), to ensure compliance with the new Bottle Bill regulations.
Rates are not yet available for 2024, but the 2023 rates can be found here. The CRV can be, but doesn’t have to be charged to the consumer. CRV fees, which are paid by distributors, are:
Processing fees, which are paid by manufacturers, are listed in the table here. The glass rate is $.00452 for 2023.
Wine and distilled spirits containers must be labeled by July 1, 2025 with one of the five CRV message options below:
The CRV message can be added before July 1, 2025 but not to wine and spirits products before Jan 1, 2024. Adding one of these CRV messages would be considered an allowable revision by TTB (see #12 in the table on this page), so a new Certificate of Label Approval (COLA) would not be required if the only change to the label is adding the CRV message.