Understanding California ABC License Categories
California ABC licenses generally fall into two main categories: non-retail licenses and retail licenses. Understanding the difference begins with identifying who will purchase the alcoholic beverages and where they will be consumed.
Wholesale Licenses
Wholesale licenses are non-retail licenses intended for businesses that sell alcoholic beverages to other licensed businesses for resale, not directly to the general public. Common examples include the Type 17 Beer and Wine Wholesaler license and the Type 18 Distilled Spirits Wholesaler license.
To operate as a bona fide wholesaler, the licensee must generally conduct a legitimate wholesale business and sell to retailers. These licenses are commonly used by distributors supplying restaurants, bars, liquor stores, grocery stores, and other licensed establishments.
On-Sale Licenses
An on-sale license allows a business to sell alcoholic beverages primarily for consumption at the licensed premises. These licenses are typically held by restaurants, bars, nightclubs, and similar hospitality businesses.
Common examples include:
- Type 41: Beer and wine at a bona fide eating place
- Type 47: Beer, wine, and distilled spirits at a bona fide eating place
- Type 48: Beer, wine, and distilled spirits at a bar or nightclub
The exact privileges, food requirements, and rules concerning minors depend on the license type. Some on-sale licenses also provide limited privileges for selling alcoholic beverages for off-premises consumption.
Off-Sale Licenses
An off-sale license allows alcoholic beverages to be sold to consumers for consumption somewhere other than the licensed premises. These licenses are commonly held by liquor stores, grocery stores, convenience stores, and specialty markets.
The two most common types are:
- Type 20: Beer and wine for off-premises consumption
- Type 21: Beer, wine, and distilled spirits for off-premises consumption
Unlike a wholesale license, an off-sale license is a retail license because the business sells directly to the consumer.
Choosing the Right California ABC License
The correct license depends on the proposed business model, the alcoholic beverages being sold, the intended customers, and where the beverages will be consumed. Because each license carries its own privileges and restrictions, buyers should confirm that a license is appropriate for their operation before entering into a purchase or transfer agreement.
An experienced California ABC license broker can help buyers and sellers identify the proper license type, evaluate availability and market value, and navigate the transfer process.
