Taking Advantage of the New Law Allowing Service of Beer and Wine by Salons & Barbershops

As of January 1, 2017, California beauty salons and barber shops in good standing with the State Board of Barbering and Cosmetology are permitted to serve their customers, where local zoning permits,  no more than 12 ounces of beer or 6 ounces of wine by the glass for no charge.

Many of our winery, brewery and retail clients have asked whether they are permitted to sell wines and beer directly to salons and barber shops under this new rule.  Because salons and barber shops do not hold alcohol beverage licenses, they are treated like consumers under the California ABC Act and are only permitted to purchase wine and beer directly from persons who can legally sell to consumers, such as licensed retailers or licensees with retail privileges.

Licensed wineries and breweries in California luckily do have retail privileges, and thus they have the right to sell their products directly to consumers in California.  As such, they can sell wine and beer directly to salons and barbershops in the state, just as they would to a consumer.  Similarly, retail licensees with off-sale privileges may sell wine and beer to qualified salons or barbershops.  Note, however, that  licensees holding a type 17/20 license combination may only sell wine (and not beer) to consumers, including salons and barbershops.

For all such sales to salons and barbershops, licensees must ensure that they charge and collect sales tax and report such sales and taxes to the California State Board of Equalization.

For any questions, please contact Bahaneh Hobel.