Obtaining a Sales Agreement with the LDB

 

Step-by-Step Process for Obtaining a Sales Agreement with the LDB

 

  1. Application Submission

    2. The applicant submits the application package for a new manufacturing licence (winery, brewery or distillery) to the LCRB. The application form can be found here.

    The LCRB e-mails a copy of applicable documents from the application package to LDB's Industry Program Coordinator.

    The LDB reviews the application package provided by the LCRB.

    The LDB will send an Information Request Questionnaire to the applicant via e-mail. If the applicant is applying for a distillery licence, they will also receive a Craft Distillery Declaration Application to complete. This declaration is only filled out by applicants who would like to be designated as a Craft Distillery.

    The LDB determines the classification of the applicant based on the information collected. There are six classifications:


    1. Land Based Winery
    2. Commercial Winery
    3. Brewery
    4. Brewpub
    5. Craft Distillery
    6. Commercial Distillery

    Each classification has a unique Sales Agreement which determines how the manufacturer may sell and distribute products in BC. Click here to view information on Sales Agreements for potential BC liquor manufacturers.

     

  2. Approval in Principle

    3. Once LCRB issues an Approval in Principle (AIP) for a manufacturer's licence, the LDB will also e-mail a AIP package that includes:

    1. A notification letter.
    2. Sales Agreement for pre-signature, as classified by the LDB.
    3. Document explaning how to acquire a BCeID - mandatory requirement to report sales back to the LDB.
      Applicants can apply for a BCeID at       https://www.bceid.ca/register/. Requirements to acquire a BCeID are located here.

     

    All applicants except Land Based Wineries and Craft Distilleries will need to sign a Pre-Authorized Debit Agreement. This is required as part of the net markup payment remittance model. 

     


    If you signed the Craft Distillery Declaration form, the LDB will commence a Pre-Qualification review to determine if you qualify for the Craft Distillery classification.

    Here is the criteria used by the LDB for Land Based Winery, Craft Distillery and Brewpub classifications of BC liquor manufacturers:

    • To be designated as a Land Based Winery and receive markup benefits on your sales, the applicant must meet the Criteria in Appendix C of the Land Based Winery Sales Agreement. Any Winery applicant that does not meet the criteria will be classified as a Commercial Winery.
    • To be designated as a Craft Distillery and to be able to directly deliver your products and receive markup benefits, the applicant must meet the Criteria in Appendix C of the Craft Distillery Sales Agreement, sign the Declaration Form and pass the Pre-Qualification Review conducted by a Compliance Accountant. Any Distillery applicant that does not meet the criteria will be classified as a Commercial Distillery.
    • To be designated as a Brewpub, the applicant's brewery must serve beer from its adjacent licensed liquor primary establishment via a pipeline connected to the brewery beer tanks. Otherwise the applicant will be classified as a Brewery.

    The applicant reviews and returns, via e-mail, the signed agreement to the LDB. Please take the time to thoroughly review and understand the terms and conditions in the Sales Agreement.

    If you have any questions relating to the Sales Agreement, contact the Industry Programs Coordinator via telephone at 604-252-6233 or e-mail at [email protected].

    Once the LDB confirms the classification of the manufacturer and receives a signed agreement, it notifies the LCRB.

     

  3. LCRB Final Inspection

    4. The LCRB will conduct a final inspection of the applicant's facilities to determine whether they meet the requirements associated with the manufacturer-type licence terms and conditions.

     

  4. Final Approvals

    5. Once the LCRB issues the manufacturing licence, the applicant is allowed to begin manufacturing. The following tasks must be completed before products can be sold:

    • The LDB will assign the applicant a unique store number to report sales and a supplier number to be used for all product registrations.

    • The LDB will send the applicant a Final Approval package, which includes the Final Approval Letter, Product Registration Information Letter, and the endorsed Sales Agreement.

    • Products must be registered, priced and activated before the applicant can sell products in BC.

     Once the applicant begins selling products directly to wholesale and hospitality customers in BC (except for BC Liquor Stores), these sales must be reported using the Direct Sales Web Reporting application.