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SB 111

Alcoholic Beverages - As enacted, authorizes a licensee that holds more than a 50 percent ownership interest in a manufacturer and a winery that are located on the same deeded property to offer product tastings and make retail sales for consumption on or off of such premises of its wine or spirits manufactured on such deeded property at a location on the overlapping premises other than on the bonded premises of the manufacturer or winery. - Amends TCA Title 57.

114th Regular Session (2025-2026) Introduced by Adam Lowe

Tennessee law now lets vertically integrated alcohol producers conduct tastings and retail sales of wines and spirits at shared premises, reducing licensing complexity for owners of both wineries and distilleries on the same property.

Pub. Ch. 358
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Bill Summary · SB 111

Legislative bill overview

SB 111 allows a single owner who controls both a manufacturer and a winery on the same property to conduct product tastings and retail sales at a shared location, rather than requiring separate facilities for each operation. The bill specifically permits sales for both on-premises consumption (like a tasting room) and off-premises consumption (like retail bottles to-go) of wine or spirits produced on that property.

Why is this important

This change reduces regulatory burden and operational costs for vertically integrated alcohol producers in Tennessee, potentially making it more economically viable for small to mid-sized producers to operate multiple production licenses. It also creates a consumer benefit by allowing visitors to sample and purchase multiple product types in one location, which can increase foot traffic and sales for qualifying businesses.

Potential points of contention

  • Competitive disadvantage concerns: Smaller producers who own only one facility type (manufacturer OR winery, but not both) may face competitive disadvantages compared to larger consolidated operations benefiting from this exemption
  • Tax and regulatory oversight: Consolidating sales at overlapping premises could complicate tax collection and inventory tracking for alcohol control authorities accustomed to monitoring separate bonded facilities
  • Market concentration: The requirement for "more than 50 percent ownership" in both entities could incentivize consolidation and reduce the number of independent alcohol producers in the marketplace

Compiled from official sources — confirm details with the bill’s official record.

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