How does Kentucky’s vintage spirit law work for selling antique bourbons?
In what appears to be the first enforcement since changes were made to allow the sale of collectible vintage bourbon, Kentucky’s Department of Alcoholic Beverage Control is investigating a retailer selling coveted rare spirits.
Officials with the state ABC raided two Justins’ House of Bourbon locations Tuesday, one in Lexington and the other in Louisville.
The state said the ABC acted on complaints alleging violations regarding acquisition, transport, possession and sale of products regulated under Kentucky’s novel vintage spirits law. The investigation is ongoing and the business said it was cooperating with officials.
In most states, an individual can’t legally sell alcohol to another individual, which is why eBay and other online retailers don’t allow it. Kentucky’s vintage spirits law, which allows sales to licensed retailers, is a rare exception.
But what is the letter of the law when it comes to selling vintage, antique spirits, known as “dusties,” in the Bluegrass State?
Kentucky’s vintage bourbon law
Under House Bill 100, passed by the state legislature in 2017 and cranked into action the following year, licensed retailers can purchase spirits from unlicensed individuals – like collectors – and sell those products to the public in adherence with state regulations.
The bill was sponsored by eight Republicans and two Democrats and signed by then-Gov. Matt Bevin.
Accordingly under the law, a “vintage distilled spirit seller” is unlicensed by the state for the sale of alcohol, at least 21 years old and:
- An administrator, executor, receiver or other fiduciary who receives and sells vintage distilled spirits
- A creditor who receives or takes possession of the products in payment for debt
- A public officer or court official who levies on them under order or process
- Other individuals who do not sell alcohol and have sold on an “occasional basis in an amount of twenty-four (24) vintage distilled spirits packages or less in the preceding twelve (12) months.”
Those who can purchase from unlicensed sellers and turn that product around for public sale are licensed retailers purchasing on licensed premises, and the products must be marked with a “conspicuous sticker, not readily removable, on the bottle or container of any purchased vintage distilled spirits package stating ‘Vintage Distilled Spirit.’”
The product cannot be owned by a distillery and must be in its original, unopened container. It also cannot be available for purchase otherwise from a licensed wholesaler, according to the text of the bill.
The retailer who purchases the vintage spirit must also notify the Kentucky ABC of the purchase and provide information about the seller.
The Herald-Leader has requested more information from the state on participation in retail activities under the law.
Kentucky bourbon secondary market
The law is seemingly unique, allowing the Bluegrass State to cultivate a retail market for highly-sought after and exclusive products as a secondary market, as noted by trade publication VinePair.
Vintage bottles such as Pre-Prohibition whiskeys or rare aged spirits from defunct distillers can command thousands of dollars from collectors.
Bourbon is a multi-billion dollar industry in Kentucky and the state has leveraged high interest in the industry by offering tax breaks to stimulate growth.
The Kentucky Distillers’ Association reports in 2021, companies filled 2.6 million bourbon barrels in the state, with a total inventory of more than $5.2 billion.
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This story was originally published January 19, 2023 at 3:13 PM.