More Breweries for Nashville?

Pending Metro Nashville legislation will greatly increase potential locations for breweries in Music City. Currently, breweries must be on land zoned for industrial use.

Industrial areas are usually located in remote areas, away from retail centers and houses. Who wants a horse rendering plant making glue near their shop or house?

But breweries are different. Although classified as an industrial use, breweries like Yazoo and Jackalope work well in retail commercial districts. Part of the Gulch is zoned for manufacturing, but popular commercial areas in East Nashville and Hillsboro Village prohibit breweries, because they are classified as industrial plants - as if they made glue from horses.

Fat Bottom Brewery ran into this issue when working on its new brewery in the old Fluffo Mattress site on Gallatin Pike. Scott Davis, the local Metro council member, introduced legislation to fix the problem for future brewers.

Davis' legislation allows "nano-breweries" that produce less than 1,250 barrels of beer per month to be located in most commercial zones. Davis' legislation has some simple rules that require breweries to be sensitive to neighborhood concerns. The proposed ordinance and the specific restrictions are at this link.

We think the nano brewery legislation is great for Nashville and its budding suds-stewing scene. If you support local beer brewing in Nashville, e-mail your local council member. You can find your local council member on the map at this link. Click on the e-mail link and let our representatives know Nashville loves beer.

Boom Boom, Out Go the Lights for Tennessee Tax Man

The Tennessee Department of Revenue was closed this afternoon, September 4, 2012. We understand that power suddenly failed, following a loud boom in the basement of the Andrew Jackson Building.

Reminds us of the Pat Travers Band rocking one hit wonder: "Boom Boom, Out Go the Lights."

Time to rejoice?

Not if you are a restaurant or bar owner trying to obtain tax clearance for a new or renewed Tennessee liquor license. The ABC will not be able to clear licenses until power is restored and tax officials catch up. Expect delays.

We hear that Revenue offices will likely be closed Wednesday. There was no estimate for when power would be restored.

Just another day in paradise for licensing in Tennessee.

Let us know how this affects your business by leaving comments so we can keep everyone posted.

Old McDonald Sells Wine in Dry Tennessee Counties

Russellville Tennessee made history at the Tennessee ABC this summer with approval of the first Farm Winery License.

Russellville is an unincorporated community in Hamblen County, Tennessee, located along U.S. Route 11E, midway between Whitesburg and Morristown, and north of Knoxville. We suspect that the town is as dry as the day is long.

In it's infinite wisdom, in the 2012 Session, the Tennessee General Assembly legalized the sale of wine made from grapes grown on  farms, even in dry counties.

Old McDonald grows the grapes and contracts with a winery to make wine. He can then offer tastings of the wine at the farm and sell bottles of wine to tourists, and to locals.

Unlike traditional retail package stores, we see no restrictions on sales on Sunday, popular holidays like July 4, or late at night, after liquor stores are legally required to be closed. Of course, in a dry area, competition is limited only to beer.

The applicant, Katie Martin, has contracted with Hillside Winery in Sevierville to produce the wine on behalf of The Grape Barn at Nolichucky Vineyard.

Wildcats Not Buying Wine in Volunteer Groceries

Media hype seized upon the recent Kentucky case that ruled in favor of wine in grocery stores. The front-page headline of The Tennessean trumpeted: "Wine-in-grocerires effort gets boost from Kentucky Ruling."

Not so - from a legal perspective. Tennessee and Kentucky law are vastly different. It's an apples and oranges comparison.

Kentucky law allows drug stores to sell liquor anywhere inside the store. Grocery stores have to have a separate store, where access by minors is controlled.

A Kentucky licensing friend, Dan Meyer, was quoted as explaining that "the law dealing with the sale of wine and liquor in pharmacies and grocery stores dates to Prohibition, when prescriptions could be obtained to buy alcohol at drug stores." The sales were restricted in grocery stores, he said, because the thought was that minors are often in grocery stores and should not be exposed to booze.

Judge Heyburn noted that in modern times, drug stores and grocery stores sell similar goods and both are frequented by minors. The judge found that Kentucky failed to justify “why a grocery-selling drugstore like Walgreens may sell wine and liquor, but a pharmaceutical-selling grocery store like Kroger cannot. The Louisville Times Courier has more details.

We understand why the judge found that Kentucky's law was invalid. 1930's drugstores are completely different from today's Walgreens and CVS, which cater to the same audience as grocery stores - including minors. Personally, both my kids are drawn to Walgreens and CVS for impulse purchases of holiday items, toys and candy.

  

Tennessee liquor laws do not allow drugstores or grocery stores to sell liquor. Tennessee requires that liquor store owners be Tennessee residents. Liquor stores can only sell liquor, cash checks and sell lottery tickets. Only one liquor store can be owned by one person or shareholders.

In Tennessee, a pharmacy, as well as a grocery store, does not qualify for a liquor license.

There may be legal issues with Tennessee's retail liquor store laws, but the problems that lead to the failure of the Kentucky law are not relevant to Tennessee.

Tennessee Whiskey Trail

Recent changes to Tennessee's distilling laws have rekindled interest in a cherished industry that was almost wiped out by Prohibition: whiskey making. 


Before whiskey making was outlawed, dozens of popular distilleries flourished in Tennessee. In the late 1800's, whiskey was a huge business for Tennessee. Demand for corn, oak for barrels and cash for expansion of successful distilleries like Charles Nelson's Greenbrier Distillery was a leading industry for Tennessee. 


After Prohibition, only Jack Daniels and George Dickel carried on the tradition. Until recently.


Important changes to Tennessee law, which previously limited the location of Tennessee distilleries, has sparked interest in Tennessee's whiskey legacy. Whiskey entrepreneurs are now free to resurrect the age-old tradition and legally make and sell Tennessee Whiskey.


Tennessee's whiskey heritage is a potentially serious attraction for national and international tourists.  Jack Daniels is one of the most famous brands in the world and a huge tourist attraction. We look forward to the proliferation of Tennessee artisan distilleries as an important step toward growing Tennessee as a destination for tourists interested in whiskey.


The Tennessee Whiskey Trail features old and new Tennessee distilleries. Visit these entrepreneurs and help resurrect Tennessee's proud history. 

2012 Tennessee Liquor Legislation Recap

Our annual summary of new Tennessee liquor laws is at this link.

If you would like to added to our mailing list, please email me here with your email address and your business type (package store, bar, distillery). We generally send two to four emails a year, and we promise not to spam you.

Metro Nashville Fixing Liquor Privilege Tax?

Many restauranteurs and bar owners have been badgered by Nashville for payment of two or three years of past due fees for a "liquor by the ounce permit." We have been following the issue and advising owners to hold invoices until a couple of legal questions are resolved.

As expected, Metro has changed the way the liquor tax is collected. Several folks have received letters like the following:

We have been in contact with the Metro Collections Office about the legality of collecting back taxes and the tax rate assessed. We continue to advise licensees to hold invoices pending discussions. Although some tax is definitely due, the amount may be significantly less than originally invoiced by Metro.

Stay tuned.