Many licensees who hold a California liquor license allowing them to make retail alcohol sales do not realize that they must purchase their alcohol from a wholesale licensee.
In a simplified example, the owner of a liquor store who runs out of a specific brand of alcohol can not make a quick trip to the nearest grocery store or other retailer to purchase product that will then be resold. Doing so is a violation of California liquor license statutes and it could result in a fine of up to $3,000 and a 15 day license suspension.
Retailers must also take note that large warehouse stores such as Costco and Sam’s Club, while they give the appearance of being a wholesale distributor, only hold retail licenses and therefore one can not purchase alcoholic beverages at these establishments for the purpose of resale.
The video below provides more information but if you have specific questions, please contact our office directly for assistance. (855) 774-9200