Updates to Products Subject To California’s Bottle Bill
On October 13, 2023, Governor Gavin Newsom signed California Senate Bill 353, which made a significant change to products that will be subject to the California Beverage Container Recycling and Litter Reduction Act (known as the Bottle Bill).
Now, only products filled and labeled after January 1, 2024 will be subject to the CRV labeling requirements of the Bottle Bill. Any products (whether domestic or imported) that were filled and labeled prior to that time will be exempt. This legislative fix did not make any changes to the change the reporting or payment requirements of the Bottle Bill.
Please see below for a full summary of the Bottle Bill and contact DP&F with any questions.
With the passage of Senate Bill No. 1013, beginning on January 1, 2024, wine and spirits will be included in California’s state container deposit system established by the California Beverage Container Recycling and Litter Reduction Act (known as the “Bottle Bill”). As such, wineries and distilleries will now be required to comply with the Bottle Bill’s CA Redemption Value (CRV) payment and reporting obligations beginning January 1, 2024, and CRV labeling requirements for all wine and spirits filled and labeled after January 1, 2024 and sold after July 1, 2025. Beer and certain other non-alcoholic beverages were already previously covered by the Bottle Bill.
Importantly, because all wines and spirits (that were not filled and labeled after January 1, 2024) sold in California after July 1, 2025 must be labeled with some type of approved CRV statement, producers should start including this information on their bottles and/or labels as soon as possible for all products to be offered for sale on or after January 1, 2025.
Below we have included a brief summary of the rules applicable to wines and spirits under Bottle Bill, the new registration and payment obligations, and labeling changes required to comply with the new laws.
TYPES OF BEVERAGES:
The Bottle Bill applies to beer, malt beverages, wine, spirits, wine and spirit coolers (regardless of ABV), and certain other non-alcoholic beverages intended for sale in California. Section 14504 and 14560.
CA REDEMPTION VALUES (CRV): Section 14560
- For bottles smaller than 750 mL (less than 24 fluid ounces), the CRV is 5 cents/bottle.
- For bottles 750 mL or larger (24 fluid ounces or more), the CRV is 10 cents/bottle.
- For boxes, bladders, pouches, or similar containers (regardless of size), the CRV is 25 cents/container.
REGISTRATION & PAYMENT OBLIGATIONS BEGINNING JANUARY 1, 2024:
- All wineries and distilleries should register with CalRecycle as soon as possible to prepare for payment and reporting requirements beginning 1/1/2024 (information regarding registration can be found here).
- All producers and importers of wine and distilled spirits should register as a Beverage Manufacturer. Brand owners that contract with producers for the manufacture of wine or distilled spirits are not considered Beverage Manufacturers.
- Any wineries and distilleries that sell wine or spirits in California Direct to Consumer or Direct to a Retailer (for wine) should also register as a Distributor.
2. Report and pay the applicable CRV to CalRecycle.
- CRV is due and payable for every beverage container (other than a refillable beverage container) sold or transferred to a dealer or consumer in CA. There is an exception for products served in a tasting rooms, discussed below. 1.5% holdback for administrative fee is permitted.
- Report due last day of month following the month of sales, even if no sales or transfers. First report for January 2024 is February 29, 2024.
- The winery or distillery may pass on the CRV cost to consumers (as the consumers can return the bottles to a recycling center for the redemption). Section 14560
3. Report and pay the applicable Processing Fee.
- The processing fee is paid on all containers a winery or distillery sells or transfers in CA, whether to wholesalers, retailers, or consumers. Section 14575(g)
- Report and payment due 10th day of 2nd month following the month of sales, even if no sales or transfers. First report and payment for January 2024 is due March 10, 2024.
- The processing fee is variable depending on container material (size does not matter) and changes each calendar year, but is currently 0.452 cents/glass bottle. The Wine Institute has noted that the hope is for the processing fee to be reduced to zero.
LABELING OBLIGATIONS FOR ALL WINES AND SPIRITS SOLD AFTER JULY 1, 2025:
- All wines and distilled spirits containers sold in California that were filled and labeled before January 1, 2024 are exempt from and not subject to the labeling requirements of the Bottle Bill. No new labels or statements will have to be added to these products.
- All wines and distilled spirits containers sold in California after July 1, 2025 (except those containers filled and labeled before January 1, 2024) must be labeled with: “CA Redemption Value,” “California Redemption Value,” “CA Cash Refund,” “California Cash Refund,” or “CA CRV”.
- The CRV statement must be clearly, prominently, and indelibly marked and can be added on the actual label or by sticker (not on aluminum cans), stamp, embossment, or other similar method. Labeling size and location requirements are set forth below: CCR 2200(b).
- For glass and plastic, the CRV statement must be on the container body label or secondary label with:
- Option 1: Along the bottom edge of the container body label in minimum lettering size at least 3/16 inch in height.
- Option 2: On or in a secondary label minimum lettering size at least 3/16 inch in height.
- Option 3: On a container body label or secondary label with contrasting colors with legible lettering size at least 1/8 inch in height.
- For aluminum, the CRV statement must be on the top lid:
- for tops greater than 2 inches in diameter, the CRV statement must be 3/16” in height; and
- for tops 2 inches or less in diameter, the CRV statement must be 1/8” in height.
- Requirements for box, bladder, and pouch containers to be determined.
4. Senate Bill No. 1013 also revised Section 14561(d) of the Bottle Bill to allow for CRV labeling by the inclusion of a scan code or quick response (QR) code on the container. This new language is currently under review by CalRecycle.
EXCEPTION FOR TASTING ROOM SALES:
If any wines or spirits are sold for on-site consumption in a tasting room, then those products are exempt from the Bottle Bill’s requirements.