Key Takeaways:
- Ohio issues three tiers of liquor permits to accommodate different businesses and establishments. A person/business can have only one permit per tier at a time for either manufacturing, wholesale distribution, or retail businesses.
- While the types of licenses are rather specific, the licensing process can be complex and competitive, with the ODLC only issuing a certain number of permits, typically through a lottery system.
- Liquor licenses in Ohio must be renewed annually, and the deadlines are dependent on where in Ohio the business is located.
Liquor permits in Ohio are issued and regulated by the Ohio Division of Liquor Control (the ODLC), which operates under the Ohio Department of Commerce. Liquor licenses allow individuals and businesses to legally produce, ship, and/or sell alcoholic beverages, including beer, wine, and spirits, within the state of Ohio. Ohio issues three tiers of liquor permits to accommodate different businesses and establishments. A person/business can have only one permit per tier at a time for either manufacturing, wholesale distribution, or retail businesses.
Type A Licenses
Type A licenses are required for the manufacture of alcohol in Ohio.
- Type A-1 licenses allow a qualifying manufacturer to produce and sell beer.
- Type A-2 licenses allow a qualifying manufacturer to produce and sell wine.
- Type A-3 licenses allow a qualifying manufacturer to produce, import, and sell spirituous liquor. Type A-4 and A-5 licenses allow a manufacturer to produce and sell prepared and bottled blended drinks and alcoholic ice cream.
Type B Licenses
Type B licenses are reserved for the distribution of alcohol in the state of Ohio. Type B licenses also allow alcoholic sales to consumers via mail order as do type S liquor licenses.
Type C, D, E, G, and I Licenses
Type C, D, E, G, and I licenses are the most familiar licenses, with each pertaining to retail sales. Type C licenses are reserved for carryout beer and wine purchases, such as a purchase from a gas station, where the alcohol is not consumed on premises. Type D licenses permit on-premise consumption, such as at a bar. Certain type D, E, G, and I licenses pertain to specific businesses, such as casinos, airports, historical river boats, railroads or airlines, and drug stores.
Type F Permits
Type F permits are temporary permits reserved for qualifying organizations. Certain type F permits have stringent restrictions such as a three day permit for a showcase of Ohio craft beers or Ohio wines (type F-11 or F-4) or to sell beer or wine at special functions that are not for profit, which is valid for up to 90 days (type F-12). Other temporary permits include sales at “qualified golf events” (type F-7) or permits for educational purposes (type F-3).
Licensing Process and Renewal
While the types of licenses are rather specific, the licensing process can be complex and competitive, with the ODLC only issuing a certain number of permits, typically through a lottery system. As a result, demand usually exceeds supply, which creates a transfer market. License applicants are also subject to background investigations and strict criteria related to financial qualifications and locations.
Liquor licenses in Ohio must be renewed annually, and the deadlines are dependent on where in Ohio the business is located. The cost of a license varies depending on the type and location but can be expensive. Failure to renew on time may result in fines or the loss of the license.
Liquor laws and regulations change over time, so it is essential to check with the ODLC or consult with Kyle Stroup (216.736.7231; KDS@kjk.com) or Jeff Vaisa (JRV@kjk.com; 216.736.7287) or another member of KJK’s Restaurant & Hospitality practice group.