Comments of the Virginia Beer Wholesalers Association and Virginia Wine Wholesalers Association in Support of VABC Circular Letter 26-01

The Virginia Beer Wholesalers Association (“VBWA”) and Virginia Wine Wholesalers Association (“VWWA”) generally support Proposed Circular Letter 26-01. Although the VBWA and VWWA remained neutral on the passage of Senate Bill 424, it is undeniable that the legislation provides for a doubling of the volume of spirits that the Board’s distillery agents may sell or serve to any single consumer during a given day. Consequently, VBWA and VWWA believe that they, and all members of the beverage alcohol industry, should support measures designed to mitigate the risks of overconsumption.

It has long been understood that the potentially harmful effects of alcohol are mitigated by eating substantial food before or at the time the alcohol is being consumed. This is the basic premise that underlies the Commonwealth’s policy of tying the privilege of selling alcohol to the requirement of selling food. Moreover, that same policy requires that wherever more potent spirits are sold and consumed more substantial food be made available – which is why mixed beverage restaurants must sell “meals” and “entrees” and not just “food” or snacks.  See, e.g., Va. Code §§ 4.1-100, 4.1-206.3; 3VAC5-50-110. Accordingly, VBWA and VWWA applaud the legislation’s initiative to require that distilleries provide prepared food, or ensure ready access to prepared food, wherever spirits are to be sold and consumed – including at the distillery agent’s licensed premises.  

VBWA and VWWA remain concerned, however, that the proposed guidance letter still leaves too much unanswered as to who bears the ultimate responsibility for ensuring substantial food is made available whenever spirits are served. A mixed beverage restaurant licensee has complete control over its menu and its kitchen’s hours of operation. A distillery agent should have the same control over a third-party “food truck” supporting on-premises spirits consumption, whether at an remote event or at the distillery agent’s premises. The guidance should make it clear that the distillery agent is responsible for the availability and adequacy of the food prepared and served by such third-party providers, which may require some form of contractual assurance be provided to ABC beforehand. If the distillery agent prefers to prepare and sell the food itself, then a menu of food items should be provided to ABC for prior approval, much as any restaurant must do when applying for a license.

The responsible sale of alcoholic beverages is a core principle of both VBWA and VWWA.  They, and their members, remain vigilant against the negative societal effects of overconsumption. As to this point, the regulatory interests of ABC and the business interests of all members of the alcoholic beverage industry are indistinguishable and should remain so. 

On behalf of VBWA & VWWA, thank you.

Kevin McNally, Counsel