Bill to boost Nevada’s boutique distilleries advances

CARSON CITY — Nevada’s boutique distilleries would be able to sell more of their bottled spirits directly to consumers and offer twice as many shots per customer at tastings under a bill amended and approved Friday by a Nevada Senate committee.

Senate Bill 246, sponsored by Republican state Sens. James Settelmeyer of Minden and Don Gustavson of Sparks, won approval by the Senate Committee on Commerce, Labor and Energy. It now moves to the Senate floor.

There are five craft distilleries in Nevada, four in the north and one in the south. Distillery owners say they are trying to develop a “grain to glass” niche market for their gin, vodka, rum, rye and whiskey. But to do so they asked to change state law that limits how much they can export to other states or sell per month to individual customers.

The original bill sought to increase allowable exports to other states to 60,000 cases per year, up from 20,000. An amendment adopted Friday splits the difference, raising the limit to 40,000 cases. In-state sales would remain capped at 10,000 cases.

Existing law also restricts direct on-site sales to customers to two bottles per month. The bill as amended would raise the limit to a case per month, not to exceed six cases per year, per person.

Additionally, the 2 fluid ounce restriction on shots offered as samples would be raised to 4 fluid ounces under the measure.

After a hearing on the bill in March, Colby Frey of Frey Ranch Estate Distillery in Fallon said the company’s goal is to put Nevada on the map and eventually distribute its liquor nationally.

But first there has to be a demand, and that requires broadening its availability, he said. He gave an example of an Oregon couple who visited the distillery and wanted to take a case home to share with friends. Under existing law, they were only allowed to buy four bottles to comply with the two-bottles-per-person-per-month law.

Bently Heritage in Douglas County plans to use rye, wheat and barley grown on Bently Ranch in Carson Valley to make its spirits. The company is investing millions of dollars to renovate the historic Minden Flour Mill building in downtown Minden to house the distillery.

Contact Sandra Chereb at schereb@reviewjournal.com or 775-687-3901. Find her on Twitter: @SandraChereb.