Written by Buying wine at a grocery store in Tennessee has only been an option for a few years, but its impact has been enormous. Until 2014, the only place to buy wine was at retail package stores (liquor stores). The Wine in Grocery Stores (WIGS) bill changed this and created a license to sell wine at grocery stores and convenience stores” the Retail Food Store License
This Retail Food Store License has two main requirements. First, the store must derive at least 20% of its sales from sales-taxable food and food ingredients. This can be a critical difference if you are operating a c-store and gas station, versus a traditional grocery store. Businesses such as small delis and bodegas may be eligible for the license if they meet this requirement. Your business’ margins and structure may make it worthwhile to pursue a Retail Food Store License, as the margins on wine sales can be significant and your selection can provide a special experience for customers.
The second requirement for a Retail Food Store License is you must have at least 1200 square feet of retail space. This includes customer shopping areas, and excludes any behind-the-counter areas, back rooms and offices, etc. We have not seen the Tennessee Alcoholic Beverage Commission display flexibility with this requirement.
If you already operate a c-store, a Retail Food Store license can be a great investment for your business and increase gross sales and margin. Additionally, unlike Retail Package Store Licenses, there is no two store cap on ownership, and there are no prohibitions on holding a Retail Package Store License and a Retail Food Store License. Like a Retail Package Store, you will also need to obtain a Certificate of Compliance from your local jurisdiction.
Because wine sales at large grocery store chains like Publix and Kroger are so limited, this license can create a unique niche for your customers and increase product selection beyond just beer and malt-based seltzers. This is especially true with the growth of RTD wine products such as canned spritzes.
Belcher Sykes Harrington is a premier alcoholic beverage and hospitality firm in Tennessee and throughout the Southeast. We provide focused, regulatory and business counsel to alcohol and hospitality clients.
By: Ryan A.T. Mercurio
Last modified: July 25, 2024
