Making the Most out of a Producer’s Licence

The basic Producer’s Licence authorises a licensee to sell their own product either on licensed premises at any time for consumption off the premises or at any time through direct sales transactions.  “Direct sales transactions” means when liquor is sold by mail, telephone, internet orders or other electronic communication.

However those holding a Producer’s Licence should note that there is much more available under such a licence than those basic conditions listed above.

Planning approval permitting, a Producer’s licensee can apply to the Liquor and Gambling Commissioner to have the following endorsements added to their licence:

  • To sell or supply their own liquor as sample for consumption on the licensed premises or for the purposes of comparison with another liquor of the same type;
  • To sell any liquor, not just the licensee’s own product, at any time for consumption in a designated dining area with or ancillary to a meal; or
  • To sell the licensee’s product at any time for consumption on the licensed premises.  This extends to a glass or bottle of the licensee’s product rather than just a sample.

Multiple Licensed Premises

A Producer’s licensee can be authorised to have up to two licensed premises approved under a single licence.  One premises must be at the licensee’s “production premises”, but the other can be elsewhere.  So, for example, a licensee with a production premises may choose to have a retail outlet in a nearby town.  While there are some restrictions on the locality of the second premises for example, in the case of a producer of wine, the second outlet must be within the same wine region the ability to have a second separate venue creates additional sales and advertising opportunities.

Producer’s Event Endorsement

A Producer’s licensee may also apply to the Commissioner to sell or supply their product at a site during an event specified in a “Producer’s Event Endorsement”.  This endorsement allows the licensee to sell their liquor for consumption on or off the specific site.  This has been used by numerous licensees in order to be involved in farmer’s markets, Sunday markets, regional events and other specific events.

For endorsement, the licensee must have production premises and the Commissioner cannot be of the opinion that the endorsement should be covered by another licence category.

Joint Cellar Door

Another option for Producer’s licensees is to enter into an agreement whereby multiple licensees operate at the same premises, which is known as a collective outlet.  This is often used in conjunction with the authorisation mentioned above, whereby licensees having two licensed premises.  In many instances producer’s will have a “shared” second premises at a collective cellar door in the main street of a nearby town. This allows smaller producers (or parties with marketing advantage) to share the costs of the second cooperative cellar door and still reap the benefits of that second venue.

If you have a Producer’s Licence and would like any further information on how to amend your Licence and/or apply for any of the above endorsements, or you are looking to apply for a Producer’s Licence, please contact one of our practitioners below.

For more information, please contact:
Sandy Donaldson

Sandy Donaldson
Director
p.  +61 8 8124 1954
e.  Email me

This communication provides general information which is current as at the time of production. The information contained in this communication does not constitute advice and should not be relied upon as such. Professional advice should be sought prior to any action being taken in reliance on any of the information. Should you wish to discuss any matter raised in this report, or what it means for you, your business or your clients' businesses, please feel free to contact us.

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