Alcohol Beverages and Cannabis

Wineries are part of the first tier in Wisconsin’s three-tier structure for regulating the alcohol beverages industry. As part of that structure, state law generally requires that alcohol beverages be manufactured by an authorized producer, such as a winery, before they may be distributed by an authorized wholesaler and sold by a retailer to consumers, though the statutes allow certain exceptions to this system. This information memorandum discusses winery permits, which are issued by the Division of Alcohol Beverages (DAB), a division of the Department of Revenue (DOR).

In Wisconsin, a person must generally have a retail license to sell alcohol to a consumer (retail sales) unless a specific exception applies. A retailer must obtain separate licenses to make retail sales of fermented malt beverages (beer and beer-based wine coolers, “beer”), and intoxicating liquor (distilled spirits, wine, and alcoholic cider, “liquor”). Retail licenses are issued by the city, village, or town (municipality) where the retailer’s premises is located. In limited circumstances, the Department of Revenue’s Division of Alcohol Beverages (DAB) may issue retail permits authorizing specific entities to make retail sales of beer or liquor. Retail licenses are issued for a specific geographic area described in the retail license application, referred to as the licensed premises (or permitted premises if issued by DAB). This issue brief provides an overview of the retail sales activities authorized by each type of retail license.

Brewers and brewpubs are part of the first tier in Wisconsin’s three-tier structure for regulating the alcohol beverages industry. As part of that structure, state law generally requires that alcohol beverages be produced by an authorized manufacturer, such as a permitted brewer or brewpub, before they may be distributed by an authorized wholesaler and sold by a retailer to consumers, with certain exceptions. A person must obtain a brewer’s or brewpub permit from the Division of Alcohol Beverages, a division of the Department of Revenue, to manufacture fermented malt beverages in Wisconsin.

This information memorandum discusses state law regarding wholesalers and their interactions with the other tiers in Wisconsin’s three-tier system, including changes made with the enactment of 2023 Wisconsin Act 73 that take effect on May 1, 2024. It does not discuss the Brand Compensation or Fair Dealership Laws, which provide wholesalers with certain rights regarding the brands of beer or liquor that they distribute and are discussed in a separate issue brief.

Among other provisions, 2023 Wisconsin Act 73 expands the ability of permitted brewers, manufacturers, rectifiers, and wineries (“producers”) to make retail sales of alcohol beverages and establishes regulations that are consistent for each type of permit. These changes are effective on May 1, 2024.

2023 Wisconsin Act 73 make numerous changes relating to the regulation of alcohol beverages under ch. 125, Stats. The act also includes a number of provisions related to the enforcement of laws by the Department of Revenue.

Wisconsin’s Brand Compensation and Fair Dealership Laws provide fermented malt beverage (beer) and intoxicating liquor (distilled spirits and wine, “liquor”) wholesalers respectively, with certain rights regarding the brands of beer or liquor that they distribute. These laws are part of Wisconsin’s three-tier system of regulating alcohol beverages and generally require a brewer, brewpub, out-of-state shipper, or distilled spirits manufacturer or rectifier to compensate a wholesaler for terminating an agreement to distribute a brand of beer or distilled spirits.