The offering of wine by a licensed wholesaler to consumers and alcoholic beverage licensees is permitted if the offering complies with the following requirements:

1. (1) The tasting is held in a public place open to and customarily used by the general public and licensed for the sale of wine;
2. (2) All alcohol excise and sales taxes are paid on any alcoholic beverage before it is distributed at the tasting;
3. (3) All beverages offered for tasting are purchased by a licensed wholesaler from the licensee upon whose premises the tasting is held at a price not less than cost and freight to the licensee; and

4. (4) The offering is made at no charge to the consumer.

   If the licensee upon whose premises the tasting is held does not wish to place the wines provided for the tasting in the inventory for resale, then any wines shipped to that licensee for the purpose of the tasting may be returned to the wholesaler who originally provided the wines. The furnishing of incidentals such as crackers, cheese, and fruit to be used by the participants to distinguish wines is permitted. However, the furnishing of other food items or tangible personal property is prohibited as an inducement to purchase alcoholic beverages.

Source: 7 SDR 75, effective February 8, 1981; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 31 SDR 214, effective July 6, 2005; 45 SDR 83, effective December 18, 2018.

General Authority: SDCL 35-10-1(3)(4).

Law Implemented: SDCL 35-4-52 , 35-10-1(3)(4).

Prior versions effective: 2005-07-06.