LEGAL

by RYAN MALKIN

Running a liquor store means competing with chains, warehouse clubs and online retailers on price and selection. Private labels may help that dynamic. A store-branded spirit, RTD cocktail or wine product is something( to the extent permissible by state law) only you can sell. It builds loyalty, improves margins and gives your store an identity that goes beyond square footage and inventory depth. Think Kirkland and Costco.

Customers who discover a private-label product they love become repeat buyers— not just of that product, but of your store. And because the product carries your name, every bottle on someone ' s counter is a quiet advertisement for your shop.

Before designing a label, look at your sales data. If a certain category— bourbon, tequila, canned cocktails, flavored vodka— consistently moves off your shelves, maybe you want to bring in a private label in that category? That way, you ' re not guessing at demand.

Think about gaps too. Is there a price point your regulars keep gravitating toward where you don ' t have a strong option? Is there a local flavor profile or regional identity you could lean into? Distilled spirits are often a natural fit for many retailers, especially in states where distilled spirits are only sold at liquor stores.

Not only for tied-house reasons, but cost as well... No, you don ' t need to build a distillery. Contract producers and co-packers exist to help retailers bring beverage products to market without owning production infrastructure. Many have worked with first-time brand owners and understand the process, from formula development through finished, labeled product.

When evaluating a production partner, look for one with experience in your target category, a track record of quality, and clear communication about timelines and minimums. Proximity can be an advantage— being able to visit and taste samples in person speeds up the development process considerably. You also want to ensure that your private-label agreement covers all the bases, including who is responsible for liability.

On the label, consider working with a designer who has beverage industry experience. They ' ll understand the regulatory requirements for label content, as well as what actually catches the eye at shelf. Of course, TTB has great presentations that outline the label requirements. Plus, you have endless examples right on your store shelves.

Your private-label name is an asset, especially if you

choose something other than the name of the store. Before committing to it, consider working with an attorney and running a clearance search, which includes the federal trademark database. Trademark disputes can be expensive and slow— far better to clear this early than to rebrand after you ' ve already printed labels and built customer recognition.

Once your product is ready, the most straightforward path is selling it in your own store. Given the regulatory system, you will purchase from a distributor. You can typically designate which distributor you would like to purchase from and include that in your private-label agreement.

Private labels are not just for the big players. Independent liquor store owners who know their customers, trust their taste and are willing to put their name on something have everything they need to build a product that stands out. Start with what you know, find the right production partner, and build from there. •

Ryan Malkin is managing partner at Malkin Law, P. A., a law firm serving the alcohol beverage industry. Nothing in this article is intended to be and should not be construed as specific legal advice. www. stateways. com Summer 2026 • StateWays 5