Colorado law requires permits for distillers selling wholesale-bought drinks

Distillers may seek local approval, then state approval, to serve alcohol bought from Colorado-licensed wholesalers. The permission covers licensed Colorado distilleries and their approved sales rooms. Each location needs a separate local permit, and state approval is also required. Drinks sold under these permits must be consumed on site. The separate cocktail rule below covers sales rooms without these permits. Distillers must offer sandwiches and light snacks, but full meals are not required. Wholesale-bought drinks cannot exceed 50% of the manufacturer’s gross annual alcohol sales revenue, measured before expenses. The law takes effect after the 90-day period following final adjournment—August 12, 2026, if adjournment was May 13. A timely referendum petition delays challenged provisions until voters approve them and the governor officially declares the vote.

Distillers without these permits for a sales room may use alcoholic mixers in cocktails made with their own liquor. This rule covers sales rooms without the local and state permits for selling wholesale-bought drinks. The mixer must be combined with liquor made by the distiller. The distiller cannot sell an alcoholic mixer by itself under this provision.

Distillers pay an annual local permit fee and locally set application fees for permits to sell wholesale-bought drinks. These charges cover local permits for selling wholesale-bought alcohol at a manufacturer’s licensed premises. The annual fee is $500 per permit, paid in advance. Local authorities set application fees to cover actual and necessary expenses, up to $1,000 initially, $100 for renewal, or $500 for an expired permit. Local permits last one year after issuance. State permits expire when the local permit expires or one year after state issuance, whichever comes first. Either permit may be suspended or revoked.