Liquor Control answers BYOB questions
By John Flynn,
Liquor License Bureau Chief, Liquor Control Division
Over the past two months, the Liquor Control Division has answered questions from bar, restaurant and casino owners about customers bringing their own alcohol, either to that establishment or to a competitor's place of business.
I thought this would be an excellent opportunity to let the rest of the alcohol beverage industry know how we are answering these questions.
Question: I heard we can't charge a “corkage fee” for my customers who bring their own bottle into my place. Why not?
Whether or not a corkage fee is allowed is actually a secondary issue. A licensee may not allow beer or wine from someone other than a licensed brewery, licensed winery, licensed beer wholesaler, or licensed wine distributor on their licensed premises.
This is a violation of 16-3-301, MCA, and ARM 42.13.301. The statute and rule require that all alcoholic beverages purchased or acquired by the licensee, received, accepted or stored on the premises of the licensee, must be purchased from a licensed wholesaler, distributor, brewery, winery or agency liquor store by the licensee. When alcoholic beverages are brought onto the licensed premises by someone other than the licensee, there is a violation.
This includes customers who bring their own bottle whether or not they are charged a “corkage fee.” So the prohibition is the alcoholic beverages being brought to the licensed premises from any source other than one specifically permitted by statute (i.e., for beer and wine, from a licensed brewery, winery, distributor or wholesaler; for liquor, from a state agency store).
Question: Is it legal to sell beer, wine, or liquor in a full bottle from the “package store” at the member's retail rate and then allow customers to pour their own drinks … or for the business to pour individual drinks from the customer's purchased bottle?
The price the licensee charges the customer for package liquor must be at least equal to the posted price that was paid to the state agency store by the licensee, not taking into consideration the unbroken case lot discount the licensee may have obtained from the agency store.
As for taking the purchased alcohol from the package store and allowing customers to pour their own drinks, consumption must only be in the consumption areas described on the on-premises licensee's approved floor plan.
If the “package store” is actually operated under a separate license, then alcohol cannot be purchased there and brought onto the on-premises licensee's area.
If the “package store” and on-premises consumption areas are all operated under the same license, and the customer is going to purchase the beverage for on-premises consumption, it needs to be provided by the licensee to the consumer in individual serving sizes.
So, a bottle of beer would be fine, although the customer can't go get it himself off the shelf and then go back to his table and drink it. That is self-service, and is unlawful.
For a multiple-serving bottle of wine or liquor, the licensee would need to pour it for the customer one serving at a time. To do otherwise would be self-service; this is a violation of ARM 42.12.122.