Pursuant to §2.2-4007 of the Code of Virginia, the Virginia Beer Wholesalers Association (“VBWA”) submit the following comments as regards the proposed amendment to regulation 3 VAC 5- 50 of the Virginia Administrative Code.  Published in the Virginia Register on July 9, 2018, the amendment proposes regulations governing the newly created “confectionery license” that became available on July 1, 2018.

New section 3 VAC 5-5-250 provides a definition of “confectionery” and sets forth certain restrictions on the manufacture and sale of such items to consumers.  VBWA does not object to the definition or the restrictions proposed, believing that the proposed language tracks the intent of the General Assembly in creating the confectionery license. 

VBWA does wish to emphasize that the General Assembly created the “confectionery license” not as a manufacturer license, but as a retail license.  The license permits its holders to sell confections containing alcohol for off premises consumption, not resale.  VBWA believes that, as retail licensees, those holding confectionery licenses are members of the Virginia’s Three Tier system.  As such, confectionery licensees are subject to the Virginia’s Tied House provisions and the same operational, promotional, and recordkeeping requirements as any other Virginia retail licensee, including the requirement that retail licensees purchase alcoholic beverages from licensed wholesalers or the Board.

                                                                                    Sincerely,

                                                                                    Kevin McNally, Esq.

                                                                                    VBWA Counsel