On-Premises Retailers May Purchase Limited Amounts of Spirits from Specially Designated Distributor (SDD) Licensees
Which Licensees May Purchase from SDDs
On-premises retailer licenses, such as Class C, B-Hotel, and Club licensees, may purchase limited amounts of spirits products from Specially Designated Distributor (SDD) licensees.
Quantity Limits & Purchase Price
On-premises retailers may purchases up to 120 liters per calendar year collectively from SDD licensees.
The purchase price of spirits from a SDD licensee must be at the state minimum shelf price or higher. The 17% retailer discount on spirits purchases from the MLCC does not apply to purchases made from a SDD licensee and a SDD licensee may not sell spirits to an on-premises retailer at a discount.
Reporting & Recordkeeping
All spirits purchases from SDD licensees must be reported to the MLCC within 45 days from the end of the month in which the purchases were made, using the On-Premises Retailer Spirits Purchase Report (LCC-610) form. Completed forms should be emailed to LARA-MLCC-Spirits-Purchase-Report@michigan.gov.
An on-premises retailer that purchases spirits from a SDD licensee must also retain records of its purchases for at least 4 years and make the records available to the MLCC, if requested.
Purchase of Beer, Wine, & Mixed Spirit Drink Products Not Allowed
On-premises retailers may not purchase beer, wine, or mixed spirit drink products from another retailer and must only purchase those products from Wholesaler licensees or manufacturers that are allowed to self-distribute their products to retailers.
