We reported recently that the Kentucky Private Barrel Selection (PBS) program was at risk of being shut down. The Kentucky ABC discovered that the current process of sampling, selling and fulfilling of single barrels of bourbon fell outside of the law. The ABC was not looking to shut down the process but they requested that Kentucky spirits makers work with law makers to codify the process.
UPDATE: The bill has passed the House and Senate and is now on Kentucky Gov. Andy Beshear’s desk for consideration. The final step!
“The ABC is not against the sale of single barrels or private barrel selects,” said Kentucky Distillers’ Association – KDA President Eric Gregory. “They just want to make sure that it is legally sound. They have worked with us on the bill and we appreciate their help.”
The sale of bourbon single barrels is great for the states tourism and of course helps with overall sales of the state’s amber spirits with contributes $8.9 billion to the states economy.
House Majority Whip Chad McCoy proposed HB 500 to help remedy this issue. Today, House Bill 500 passed the Kentucky House on a vote of 75-17. The passage included the following amendments.
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House Floor Amendment 1
- Retain original provisions;
- require a distillery to make at least 70% of its annual private selection packages available for purchase by wholesalers;
- limit souvenir packages sold exclusively to distillery visitors to three liters per person per day; (Right now, visitors to a Kentucky distillery can purchase up to 9 liters per person per day of anything in the gift shop.)
- allow a vintage distilled spirits seller to sell up to 24 vintage distilled spirits packages in a 12 month period;
- establish reporting standards for licensees who purchase vintage distilled spirits;
- calculate the wholesale price of distillery sales at 70% of the retail price if an actual wholesale price is unavailable.
House Floor Amendment 2
- Amend KRS 241.010 to define “vintage distilled spirits seller”; restrict a limited non quota package license holder to sales of only private selection packages;
- require a distillery to make at least 70% of its annual private selection packages available for purchase by wholesalers;
- limit souvenir packages sold exclusively to distillery visitors to three liters per person per day;
- allow a vintage distilled spirits seller to sell up to 24 vintage distilled spirits packages in a 12 month period;
- establish reporting standards for licensees who purchase vintage distilled spirits;
- amend KRS 243.240 to allow a quota retail package license holder to sell packages and provide samples of distilled spirits and wine at fairs and festivals in wet territory;
- limit sales to those fairs and festivals held in the same county as the license holder’s licensed premises;
- calculate the wholesale price of distillery sales at 70% of the retail price if an actual wholesale price is unavailable.
The bill now moves on to the Senate for further consideration.
How Can I Support Single Barrel Sales of Bourbon in Kentucky?
Go to this site and send an email to state representatives. The three key initiatives of this bill includes the following.
HB 500 will:
- Authorize private barrel selections and allow consumers and non-profits to buy limited private selection barrels directly from distillery visitor centers.
- Let consumers buy limited exclusive bottles that will only be available at distillery gift shops. This will draw repeat visitors to the Commonwealth and answer the question so many distillery tourists ask: “What can I buy here that I can’t get anywhere else?”
- Allow distilleries to open one satellite tasting room each, enhancing downtowns and local communities around the state that might not have access to a full distillery experience.
Your help is needed now! Please call or email your Kentucky state Senator today and ask them to pass HB 500.
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