Contract Manufacturing Opportunities for Wine and Liquor Producers Expand in New Hampshire
In an important update for New Hampshire’s alcohol manufacturing industry, House Bill 1358 (HB 1358), effective as of October 1, 2024, has broadened manufacturing options for wine and liquor producers. Previously, only beverage manufacturers had the ability to enter into contract manufacturing agreements or secure tenant manufacturing licenses. With HB 1358, wine and liquor manufacturers now have access to these opportunities, potentially increasing production flexibility and fostering collaboration within the state’s industry.
What’s New for Wine Manufacturers?
Under HB 1358, licensed wine manufacturers in New Hampshire, or those licensed in another state, may now create “contract wine arrangements” with other licensed wine manufacturers. This allows them to produce wine on behalf of another company, utilizing their own facilities. Additionally, wine manufacturers now have the option to become tenant manufacturers. In this arrangement, a wine producer can lease the facilities and equipment of an established New Hampshire wine manufacturer to create their own products.
While contract and tenant manufacturing offer flexibility, wine producers must adhere to stringent regulations, including accurate record-keeping, inspection readiness, and tax obligations. All wine manufacturing contracts and tenant arrangements must be registered with the New Hampshire Liquor Commission and are subject to a $240 licensing fee.
Expanding Opportunities for Liquor Manufacturers
Similar to the changes for wine, liquor manufacturers now have expanded manufacturing options. Licensed liquor producers in New Hampshire or out-of-state licensees can enter into “contract liquor arrangements,” enabling them to produce liquor on behalf of another licensed manufacturer. They can also operate as tenant manufacturers, renting the facilities and equipment of another New Hampshire liquor manufacturer.
These tenant manufacturers must meet all regulatory standards as if they were producing independently, including thorough record-keeping, inspections, and tax responsibilities. All liquor contracts and tenant agreements must be filed with the Liquor Commission, accompanied by a $240 licensing fee.
Key Benefits for New Hampshire’s Alcohol Industry
The passing of HB 1358 represents a significant step forward for New Hampshire’s wine and liquor manufacturers, offering them increased production flexibility, enhanced opportunities for collaboration, and potentially greater market reach. By expanding the contract and tenant manufacturing options, the state is opening new pathways for growth within the industry, allowing businesses to optimize resources and streamline operations.
