                                 CODE OF VIRGINIA

LIMITATION ON MANUFACTURERS, BOTTLERS, AND WHOLESALERS; EXEMPTIONS (§ 4.1-215)

A. 1.  Unless exempted pursuant to subsection B, no retail license for the sale
of alcoholic beverages shall be granted to any (i) manufacturer, bottler, or
wholesaler of alcoholic beverages, whether licensed in the Commonwealth or not;
(ii) officer or director of any such manufacturer, bottler, or wholesaler; (iii)
partnership or corporation, where any partner or stockholder is an officer or
director of any such manufacturer, bottler, or wholesaler; (iv) corporation
which is a subsidiary of a corporation which owns or has interest in another
subsidiary corporation which is a manufacturer, bottler, or wholesaler of
alcoholic beverages; or (v) manufacturer, bottler, or wholesaler of alcoholic
beverages who has a financial interest in a corporation which has a retail
license as a result of a holding company, which owns or has an interest in such
manufacturer, bottler, or wholesaler of alcoholic beverages. Nor shall such
licenses be granted in any instances where such manufacturer, bottler, or
wholesaler and such retailer are under common control, by stock ownership or
otherwise.

   2. Notwithstanding any other provision of this subtitle, a manufacturer of
   wine or malt beverages, or two or more of such manufacturers together, whether
   licensed in the Commonwealth or not, may obtain a banquet license as provided
   in &#xA7; 4.1-206.3 upon application to the Board, provided that the event for
   which a banquet license is obtained is (i) at a place approved by the Board
   and (ii) conducted for the purposes of featuring and educating the consuming
   public about wine or malt beverage products. Such manufacturer shall be
   limited to eight banquet licenses, whether or not jointly obtained, for such
   events per year without regard to the number of wineries or breweries owned or
   operated by such manufacturer or by any parent, subsidiary, or company under
   common control with such manufacturer. Where the event occurs on no more than
   three consecutive days, a manufacturer need only obtain one such license for
   the event.

   3. Notwithstanding any other provision of this subtitle, a manufacturer of
   distilled spirits, whether licensed in the Commonwealth or not, may obtain a
   banquet license for a special event as provided in subdivision D 1 b of &#xA7;
   4.1-206.3 upon application to the Board, provided that such event is (i) at a
   place approved by the Board and (ii) conducted for the purposes of featuring
   and educating the consuming public about the manufacturer&#8217;s spirits
   products. Such manufacturer shall be limited to no more than eight banquet
   licenses for such special events per year. Where the event occurs on no more
   than three consecutive days, a manufacturer need only obtain one such license
   for the event. Such banquet license shall authorize the manufacturer to sell
   or give samples of spirits to any person to whom alcoholic beverages may be
   lawfully sold in designated areas at the special event, provided that (a) no
   single sample shall exceed one-half ounce per spirits product offered, unless
   served as a mixed beverage, in which case a single sample may contain up to
   one and one-half ounces of spirits, and (b) no more than three ounces of
   spirits may be offered to any patron per day. Nothing in this paragraph shall
   prohibit such manufacturer from serving such samples as part of a mixed
   beverage.

B. This section shall not apply to:

   1. Corporations operating dining cars, buffet cars, club cars, or boats;

   2. Brewery, distillery, or winery licensees engaging in conduct authorized by
   subdivision A 5 of &#xA7; 4.1-201;

   3. Farm winery licensees engaging in conduct authorized by subdivision 6 of
   &#xA7; 4.1-206.1;

   4. Manufacturers, bottlers, or wholesalers of alcoholic beverages who do not
   sell or otherwise furnish, directly or indirectly, alcoholic beverages or
   other merchandise to persons holding a retail license or banquet license as
   described in subsection A;

   5. Wineries, farm wineries, or breweries engaging in conduct authorized by
   subsection F of &#xA7; 4.1-206.3 or &#xA7; 4.1-209.1 or 4.1-212.1; or

   6. One out-of-state winery, not under common control or ownership with any
   other winery, that is under common ownership or control with one restaurant
   licensed to sell wine at retail in Virginia, so long as any wine produced by
   that winery is purchased from a Virginia wholesale wine licensee by the
   restaurant before it is offered for sale to consumers.

C. The General Assembly finds that it is necessary and proper to require a
separation between manufacturing interests, wholesale interests, and retail
interests in the production and distribution of alcoholic beverages in order to
prevent suppliers from dominating local markets through vertical integration and
to prevent excessive sales of alcoholic beverages caused by overly aggressive
marketing techniques. The exceptions established by this section to the general
prohibition against tied interests shall be limited to their express terms so as
not to undermine the general prohibition and shall therefore be construed
accordingly.

HISTORY: Code 1950, § 4-32; 1978, c. 108; 1982, c. 66; 1984, c. 68, § 4-32.1;
1993, c. 866; 1995, cc. 456, 630; 2003, cc. 1029, 1030; 2005, c. 784; 2007, cc.
99, 799; 2013, cc. 266, 604; 2015, c. 604; 2016, cc. 132, 141; 2017, c. 159;
2018, c. 734; 2020, cc. 1113, 1114; 2025, cc. 126, 130.