COVID-19 Update: Beer and Wine Deliveries and To-Go Orders for Oregon Businesses

***This Stoel Rives Client Alert has been updated with new guidance issued by the Oregon Liquor Control Commission (“OLCC”) on March 19th, 2020.

On March 17, 2020, Governor Kate Brown issued Executive Order 20-07, which included measures to flatten the curve of coronavirus transmission in Oregon, including an order limiting restaurants, bars, tasting rooms, and other establishments that offer food or beverages for sale to carry-out and delivery only with no on-site consumption permitted. These measures took effect on March 17, 2020 and will last until April 14, 2020 unless extended. The OLCC took swift action in response to the Governor’s order announcing in a news release on March 19, 2020 that it would be temporarily relaxing certain requirements for same-day delivery of malt beverages (beer), wine, and cider.. In this alert, Stoel Rives’ beverage attorneys summarize the OLCC’s recent emergency actions and how Oregon businesses can sell beer and wine to-go now and going forward.

To-Go and Delivery Sales for Off-Premises Retailers

Holders of Oregon’s Off-Premises Sales or “O” liquor license – typically grocery stores, convenience stores, bottle shops, delis, and other markets – already have to-go sales privileges. With the OLCC’s new temporary emergency rules, O license holders can now also offer curbside service for customers who prefer not to enter the premises. Curbside delivery includes delivery to a location that is within 100 feet of the boundary of your licensed premises. For now, if you hold an O license, your business can sell the following items to-go and at curbside:

• Sealed containers of malt beverages, wine, and cider.
• Sealed containers of malt beverages that can hold up to 2 ¼ gallons.
• Growlers supplied by the customer of malt beverages, wine, and cider.

In addition, O license holders automatically have the privilege to make next-day delivery of malt beverages, wine, and cider ordered by a customer, and with a new temporary rule expected to be adopted over the weekend, O licensees will also have automatic temporary approval to make same-day deliveries to Oregon residents. Continue reading for considerations to keep in mind when making same or next-day deliveries.

To-Go Sales for On-Premises Retailers

The OLCC is also offering a direct route for on-premises retailers to make to-go sales and same-day deliveries of sealed containers and/or growlers of malt beverages, wine, and cider. Starting today, holders of an Oregon Full On-Premises Sales (“F-COM”) or Limited On-Premises Sales (“L”) liquor license – typically restaurants, bars, taverns, and hotels – can submit an Off-Premises Sales Liquor License Application, Entity Questionnaires, and a Same-Day Delivery Approval Form to olcc.covid19_alcoholtemp@oregon.gov with the following subject, “Request for 90-day authority to operate off-premises sales license” and can expect to receive automatic temporary authority to make to-go sales and same-day deliveries, effective immediately and for a period of up to 30 days. The relevant application forms to complete can be found at COVID-19: FAST-TRACK TEMPORARY AUTHORITY TO OPERATE - OFF-PREMISES SALES.

Within that 30-day period, OLCC staff will review the application documents you submitted to confirm you are eligible for the Off-Premises Sales License and will work with you to complete all the steps for processing the final license. The OLCC will not be requiring upfront payment for temporary to-go sales and same-day delivery approval, but payment will be required in order to issue the final Off-Premises Sales License.

It’s important to keep in mind that all off-premises sales and deliveries of alcohol beverages must still comply with the alcohol delivery requirements discussed below. If you need assistance complying with Oregon’s alcohol delivery requirements, contact a Stoel Rives beverage attorney for a consultation.

To-Go Sales for Breweries and Wineries

Similar to O licensees, Breweries (“BRW” or “BRWNC”) and Brewery-Public Houses (“BP”), in Oregon, are already approved to make the following to-go sales:

• Sealed containers of malt beverages, wine, and cider.
• Growlers supplied by the customer of malt beverages, wine, and cider.
• Kegs of malt beverages.

Licensed Wineries (“WY” or “WYNC”) can sell sealed containers and growlers supplied by the customer of malt beverages, wine, and cider to-go, but cannot sell kegs. Under OLCC’s new temporary emergency rules, breweries, brew-pubs, and wineries are now allowed to offer curbside service for customers who prefer not to enter the premises, and it is expected that a new temporary rule will afford breweries, brew-pubs, and wineries automatic temporary approval to make same-day deliveries to Oregon residents.

Similar to the O license discussed above, breweries, brewpubs, and wineries are also automatically afforded the privilege to make next-day deliveries of the malt beverages, wine, and cider to customers.

Next or Same-Day Alcohol Delivery Requirements

If your business already has permanent or temporary approval to make next or same-day deliveries or you’re deciding whether to apply for approval to make deliveries to Oregon residents, we encourage you to keep the following in mind and call a Stoel Rives beverage attorney if you have questions :

• The OLCC imposes specific hours during which same-day deliveries are allowed and volume limits on the amount of beer, wine, and/or cider that can be delivered to a customer. The agency is temporarily allowing beer, wine, and/or cider to be delivered until 2:30 a.m. For more details on these requirements, visit the OLCC’s website.
• Alcohol must be factory sealed in bottles, cans or other like packaging.
• Deliveries may only be made to a home or business that has a permanent street address.
• Licensees must retain alcohol delivery records for a minimum of 18 months.
• The delivery person must verify the age of the person accepting delivery before handing over alcohol and cannot deliver to any person who shows signs of intoxication.
• The delivery person must obtain the signature of the customer that receives the delivery of beer, wine, or cider.
• Additional rules apply if you will be using a for-hire carrier to make deliveries on your behalf.
• If you’re using an e-commerce or mobile app business to fulfill customer orders, keep in mind that you, as the licensee, must receive and control all money related to the sale of alcohol.

A Note on Spirits

Liquor stores that sell spirits remain open for business in Oregon. Retail sales agents and distillery retail outlet agents should keep in mind that shipping requests by phone, internet, etc. are prohibited. Additionally, spirits may not be delivered directly to customers by a retail agent. In-person purchases may, however, be shipped to Oregon residents that are at least 21 years of age but must use an approved for-hire carrier.

Social Distancing Protocols

For businesses that choose to offer to-go or delivery serves, Governor Brown is requiring adherence to social distancing protocols of at least three feet between customers ordering, waiting, or in line, consistent with guidance from the Oregon Health Authority.

If you have any questions about alcohol sales or deliveries in Oregon, please contact us.