Alcohol

Alternating Proprietorships

 

An alternating proprietor arrangement consists of two or more persons or entities taking turns using the same space and equipment to produce wine. In almost all situations, an existing proprietor-owner of a bonded wine premises agrees to rent space and equipment to a new proprietor. Such an agreement allows existing wineries to use excess capacity and gives new entrants to the wine business an opportunity to begin on a small scale without investing in equipment. In other situations, two or more persons make plans to establish independently operated bonded wine premises, mutually agreeing to alternate the use of space and equipment.

Alternating proprietor arrangements must be formally approved by the Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau (TTB) through an application and approval process. Additional information. requirements, and an application can be accessed on the TTB website.

Iowa law requires alternating proprietorships be approved by TTB. Each proprietor is required to hold a separate class “A” native wine permit issued by the Iowa Alcoholic Beverages Division. An alternating proprietorship premises can only hold one class “C” native wine permit.

IC § 123.56(6A)