msaltzman@klnevada.com 702-362-7800

In the recent 2017 Session, the Nevada Legislature enacted two bills that present changes and new opportunities for Nevada’s alcohol industry. These bills include Senate Bill 199 and Assembly Bill 431.

“Estate Distilleries”

Nevada law currently allows for the operation of craft distilleries, which are establishments authorized to manufacture and sell distilled spirits made from agricultural raw materials. These craft distilleries may sell up to 10,000 cases per year to a liquor wholesaler in Nevada, and may manufacture an additional 40,000 cases per year for exportation to another state.

Senate Bill 199 creates an “estate distillery” category and outlines the scope of their operation. Like craft distilleries, an “estate distillery” is now authorized to manufacture and sell distilled spirits made from agricultural raw materials as long as 85% of the agricultural raw materials are be grown within Nevada.

This “estate distillery” classification comes with several benefits. The new law allows distilleries to sell up to 75,000 cases per year to a liquor wholesaler in Nevada, and may manufacture another 400,000 cases per year for exportation to another state. At the same time, however, Senate Bill 199 limits an estate distillery’s retail sales for off-premise consumption to 7,500 cases per year.

Increase in amount of craft beer manufacturing

In addition to Senate Bill 199, the Nevada Legislature also enacted Assembly Bill 431 which amends Nevada law governing brew pubs, breweries, craft distilleries, and wineries. This new law allows brew pubs to increase their production from 15,000 barrels per year to 40,000 barrels per year but reduces the quantity of beer that may be sold at retail from 15,000 barrels per year to 5,000 barrels per year (up to 1,000 of which may be sold in kegs).

This new Nevada law now authorizes Nevada wineries to operate under an “alternating proprietorship” model so that up to four proprietors (i.e. wineries) may operate under the same roof.