Governor Gavin Newsom has signed several bills that bring notable changes for California alcohol producers, wholesalers, and retailers heading into 2026. Among the most consequential of these bills are Assembly Bill (“AB”) 1246, AB 720, and AB 2991.
AB 1246 extends and expands direct-to-consumer shipping privileges for both in-state and out-of-state craft distillers and increases the on-site sales limit, offering small producers greater flexibility in reaching customers. AB 720 creates a new Estate Tasting Event Permit, allowing wineries to host tastings at vineyard properties they own or control, and provides temporary regulatory relief on California Redemption Value (“CRV”) labeling requirements for wine and spirits containers. Lastly, AB 2991, signed into law at the end of 2024, but set to take effect January 1, 2026, requires electronic funds transfers (“EFT”) for payments between alcohol retailers and wholesalers.
- AB 1246 – Distilled Spirits Direct Shipper Permit:
AB 1246, signed into law October 3rd, introduces a Distilled Spirits Direct Shipper Permit to be issued by the California Alcoholic Beverage Control (“ABC”). The Distilled Spirits Direct Shipper Permit becomes effective January 1, 2026, and will allow CA craft distilleries and qualifying out-of-state distilleries to ship up to 2.25 liters of distilled spirits per day, per consumer, directly to California consumers.
Distilled Spirits Direct Shipper Permit Requirements
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- Eligibility: Only in-state and out-of-state distilleries producing a maximum of 150,000 gallons annually will qualify for this license.
- License fee: $30.00 per year.
- Shipping limit: No more than 2.25 liters of distilled spirits per consumer per day.
- Labeling: Containers must be conspicuously labeled with the statement: “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY.”
- Delivery: Signature of an individual 21 years or older is required upon delivery.
In addition to the expansion of DtC spirits shipping, AB 1246 raises the per-consumer on-site sales limit for a CA craft distiller licensee from 2.25 liters to 4.5 liters of pre-packaged distilled spirits per day, and authorizes both winegrower and craft distiller licensees to possess and transport brandy for aging purposes. Note the bill is currently set to sunset January 1, 2027. The revised law will be codified at Cal. Bus & Prof. Code § 23504.5.
- AB 720 – Winegrowers’ Estate Tasting Event Permit and CRV labeling extension:
AB 720 establishes a new Estate Tasting Event Permit for winegrower licensees (Type 02). The permit authorizes winegrowers to exercise their tasting room privileges at either:
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- Property adjacent to the licensed premises and owned/controlled by the licensee, or
- A non-adjacent vineyard owned/controlled by the licensee.
With the new permit, winegrowers will have more flexibility to host pop-up events or estate-based tasting experiences. Similar to the ABC’s Catering Authorizations, the Estate Tasting Event Permit will be limited to 36 events per licensee in one calendar year, and additional local permits or approvals may be required.
AB 720 also extends key deadlines for application of the California CRV labeling program to wine and distilled spirits containers: (1) it delays the date by which labels on these containers must contain deposit information to July 1, 2026, and (2) it extends the labeling exemption to containers filled and labeled before July 1, 2025. The bill also permits manufacturers to etch redemption values on containers and to use new styles of machine-readable indicia, e.g., QR codes.
The Estate Tasting Event Permit law will be codified at Cal. Bus & Prof. Code § 23399.03. The revised recycling program deadlines will be codified at Cal. Pub. Res. Code § 14561.
- AB 2991 – Retailer purchases must be via EFT:
Finally, AB 2991 will go into effect January 1, 2026. As of that date, payments from a retailer licensee to a wholesaler licensee for the delivery of beer, wine, or distilled spirits must be made by EFT, except under limited extenuating circumstances. Wholesaler licensees generally must select the third-party payment processor to facilitate the EFT. However, if the retailer does not agree with the wholesaler’s choice of processor and was using a different payment processor as of July 1, 2025, the parties shall use the retailer’s processor. Additionally, retailers and wholesalers must be responsible for their own service fees related to third-party payment processing.
The law provides limited exceptions where cash, check, or money order payments are permitted, including:
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- EFT fails due to insufficient funds.
- If the retailer holds a temporary or interim operating permit from the ABC.
- During a temporary service interruption of the payment processor.
- Within the first 30 days following the issuance of a retailer license.
The EFT requirement applies only to payments from retailers to wholesalers. It does not govern payments made directly from retailers to wineries or breweries.
In July 2025, the ABC issued an Industry Advisory, which provides additional guidance on AB 2991. The EFT law is codified at Cal. Bus. & Prof. Code § 25509.1.
For more information on these bills or other CA alcohol legislation, contact an attorney at Strike Kerr & Johns.