1. (1) Definitions. In this section, all terms have the same meaning as provided in s. 125.21, Stats.
2. (2) Written contracts. Upon request of the division, a producer, contract producer, recipe producer, guest producer, host producer, out-of-state recipe supplier, producer-licensee, or licensor shall provide to the division the written contract or agreement for any contract production agreement, alternating proprietorship, or licensing agreement.

3. (3) Out-of-state recipe suppliers.

   1. (a) A producer may enter into a contract production agreement with an out-of-state recipe supplier that does not hold a Wisconsin production permit only if all the finished alcohol beverages are shipped directly from the producer to a location outside of this state.

      Example 1: Winery DEF, an out-of-state recipe supplier, contracts with Wisconsin Winery TUV to bottle wine for Winery DEF. All finished wine will be shipped directly from Wisconsin Winery TUV to Winery DEF’s out-of-state location, with no product remaining in Wisconsin. In this example, Wisconsin Winery TUV must file the tax return required under ch. 139, Stats., for the wine bottled pursuant to the contract production agreement to show the wine produced, but no excise tax is due since all product is shipped out of state. Winery DEF is not required to hold a Wisconsin production permit.

   2. (b) An out-of-state recipe supplier that contracts with a producer where alcohol beverages produced under the contract are warehoused in this state or sold from this state directly to a wholesaler or producer in this state, shall obtain the Wisconsin production permit that authorizes the production of that alcohol beverage to engage in these activities.

      Example 2: Out-of-state Distiller GHI contracts with Wisconsin Rectifier QRS to purify and blend a new intoxicating liquor according to Distiller GHI’s specifications. Per the contract, Distiller GHI will warehouse the alcohol beverages in Wisconsin prior to selling some to a permitted Wisconsin wholesaler before the remainder is sold out-of-state. Distiller GHI must obtain a rectifier’s permit as a recipe supplier, and an alcohol beverage warehouse permit for the storage location. Distiller GHI, as the recipe producer, must report all contractual production, including production destined for another state, through the rectifier’s permit by filing the tax return and paying the excise tax due under ch. 139, Stats., for the alcohol beverages produced and distributed in Wisconsin.

4. (4) Contract production agreements. A producer is not required to obtain a separate production permit, nor pay an additional permit fee, for each contract production agreement insofar as all producers hold the appropriate production permit.
5. (5) Alternating proprietorships. In the case of an alternating proprietorship, a guest producer shall obtain a separate production permit, and pay a separate permit fee, for each alternating proprietorship the guest producer enters.

History

History: EmR2419: emerg. cr., eff. 12-14-24; CR 25-050: cr. Register December 2025 No. 840, eff. 1-1-26.