Spirituous Liquor Manufacturer Sales Room Expansion

Detected April 3rd, 2026

Summary

Colorado SB26-114 proposes to expand spirituous liquor manufacturer sales room allowances from 1 to 3 locations and create a new permit for selling third-party wholesale beverages on-site. Manufacturers must provide food service and limit wholesale-sourced sales to under 50% of gross annual alcohol revenue. The bill requires local licensing authority review and 45-day public comment periods.

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What changed

The bill modifies Colorado liquor licensing law to authorize spirituous liquor manufacturers to operate up to 3 approved sales room locations (currently limited to 1 location plus the licensed premises). It also creates a new permit allowing manufacturers to serve and sell alcohol beverages acquired from licensed wholesalers at their premises or sales rooms, subject to a 50% revenue cap on wholesale-sourced sales and mandatory food service requirements.

Affected manufacturers should evaluate whether additional sales room locations would benefit their operations and prepare permit applications if they intend to sell third-party wholesale beverages. Applications require notification to local licensing authorities, 45-day public posting, and compliance with zoning requirements including school distance restrictions. Local licensing authorities will evaluate neighborhood impacts including traffic and noise before the state licensing authority issues permits.

What to do next

Assess whether to apply for additional sales room locations (up to 2 new permits available)
Prepare permit applications for selling wholesale-sourced beverages, including food service and revenue tracking systems
Review local zoning requirements and school distance restrictions before submitting permit applications

Source document (simplified)

SB26-114

Spirituous Liquor Manufacturer Sales Rooms & Other Alcohol

| Type | Bill |
| --- | --- |
| Session | 2026 Regular Session |
| Subjects | Liquor, Tobacco, & Marijuana |
Concerning a spirituous liquor manufacturer's sales rooms.

Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:

Under current law, a licensed manufacturer of spirituous liquors (manufacturer) may conduct tastings of and sell the manufacturer's own spirituous liquors at the manufacturer's licensed premises or at one other approved sales room location. The bill authorizes the manufacturer to also conduct tastings of and sell the manufacturer's spirituous liquors at up to 2 approved other sales room locations.

The bill authorizes a manufacturer to apply for a permit from the state licensing authority to serve and sell alcohol beverages acquired from a licensed wholesaler at the manufacturer's premises or a sales room location. A copy of the permit application must be sent to the local licensing authority for comment, posted for 45 days in a conspicuous place at the location that is the subject of the application, and published in a local newspaper of general circulation.

Before issuing the permit, the state licensing authority shall consider:

A response from the local licensing authority concerning impacts on the surrounding neighborhood, including traffic, noise, and distance from schools;
Whether zoning, fire, and other requirements have been met; and
Public comments, if any. The state licensing authority shall not issue the permit unless the applicant affirms that they have complied with local zoning restrictions, including requirements for distance from schools.

If the permit application is approved:

The manufacturer must serve sandwiches and light snacks if selling and serving alcohol beverages acquired from a wholesaler licensed in the state; and
The proceeds from the sale of alcohol beverages acquired from wholesalers must not account for more than 50% of the gross annual revenue from alcohol beverage sales. (Note: This summary applies to this bill as introduced.)