Legalities of Contract Brewing
I've been contemplating the feasibility of starting up a contract brewing company. I have some questions regarding the distribution aspect of this process and any input would be greatly appreciated (most likely starting company in California):
I have connections to potentially put the brewed beer in most bars in the area. From my understanding due to the 3 tier system, the "brewing" company would not be able to distribute the beer that is produced. Is this understanding correct? If so, to get around this, could I create a separate "distribution" entity that would distribute the beer to all the various vendors? Are there any other significant barriers that would prohibit me from doing this? I appreciate your input!
I understand this. As I mentioned above, I'm most likely starting this in California. Is anyone familiar with this state's rules relating to my question?
As far as I know, you can hold both a type 23 and a type 17. There may be technicalities involved, including "selling" to yourself, but your ABC office should be the source of info on this.