Liquor Manufacturer Licenses: Lounge, Tasting Room or Both?

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If you’re a liquor manufacturer in BC or Alberta (winery, brewery or distillery) you may be wondering what kind of liquor license(s) you require. We’re frequently asked whether a manufacturer license allows you to run a tasting room and lounge on the manufacturing premises. The answer is “Yes” and “No”.

Definitions

Manufacturer’s Tasting Room: a tasting room allows your business to provide liquor tasting samples which are consumed on-premises in a dedicated sampling area, or during guided tours of your facility.

Manufacture’s Lounge: a lounge is dedicated indoor area or patio area where you may serve alcohol made on-site for customers to consume.

Rules and regulations for liquor manufacture licenses vary from province to province, so we’ve outlined the basics of tasting room vs. lounge licensing in BC and Alberta, because we provide most of our liquor license application consultation services for businesses in those provinces.

BC Liquor Manufacturer License, Lounges and Tasting Rooms

Wineries, breweries and distilleries in BC must have a Manufacturer license.

Tasting room license

The BC liquor manufacturer license also allows your business to have a “dedicated sampling area” (tasting room), provide guided tours, and serve liquor samples to guests on tours.

Lounge license

With an amendment to your manufacturing license called an “endorsement”, you may serve liquor by the glass or bottle to be consumed on-site in a dedicated lounge area inside and/or on a patio. Lounges must serve food and require local government approvals before the LCRB will grant an approval. With a lounge endorsement, a BC liquor manufacturer may serve any kind of alcohol, but the cost of purchasing other manufacture’s products for the lounge must not exceed 20% of the total cost of liquor sold in the lounge in any quarter. In other words, at least 80% of lounge sales must be products that you manufacture on site.

Other manufacturing license endorsements include on-site retail store, picnic area, or special event area. BC liquor manufacturers operating a lounge must maintain what’s called a “liquor register” – a record of all purchases including receipts and invoices. The liquor register must be kept on site and made available for inspection at any time.

A BC liquor manufacturer’s lounge may apply to operate from 9 a.m. to 4 a.m. the following day. Hours approvals are dependent upon the municipality rules and guidelines.

See the BC liquor manufacturer license han db ook (PDF).

Alberta Liquor Manufacturer License, Lounges and Tasting Rooms

In Alberta, distillers, vintners and brewers must have an Alberta liquor manufacturer license known as a “Class E license”.

Tasting room license

Any holder of a Class E liquor manufacturer’s license may operate a tasting room or provide tastings during tours. Tasting records must be provided to AGLC upon request

Lounge license

In Alberta, a Class A license is required for manufacturers to sell their products for consumption in an on-premises lounge and/or adjoining patio. A manufacturer with a Class A license must not operate like other Class A license holders (restaurants, bars, taprooms). Only liquor manufactured under the Class E license may be sold in the manufacturer’s lounge. Records of all lounge sales must be maintained and accessible to AGLC inspectors at any time.

See the Alberta liquor licensee han dbook (PDF).

Get Help from a Professional Liquor Manufacturer License Consultant

Alberta and BC liquor manufacturer licensing rules and regulations are complex. Our liquor license consultants can help you apply for a liquor manufacturer license and then help you keep your license in good standing. Contact us to book a consultation.

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Rebecca Hardin

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