By: Brad Berkman, Esq. and Louis J. Terminello, Esq.

Though this publication is wine and supplier focused, the following key concepts apply to all tiers of and alcohol beverage commodity types, that is, wine, beer and spirits. It also applies to affected parties, meaning alcohol beverage licensees of all types and sizes, (upper-tier and retail), from the well-established and sophisticated large organization to the mom and pop shop.

It can be a little unsettling to receive notice from the Alcohol Tax and Trade Bureau (TTB) or a state regulatory authority that your business, as licensee or permittee (herein after, the licensee) is under a compliance audit by a regulatory authority. Having a tested compliance system in place, which has proven itself effective over time, prior to receipt of the audit/compliance review will alleviate or at least mitigate the chances and consequences of an administrative action, fines penalties and lost revenue as a result of the licensees shift in focus away from the business of selling the drink. With that in mind, what follows is a short primer on a suggested organizational structure and key areas of concentration for an effective organization’s compliance program.

Personnel

A human being leading the way with knowledgeable team members is always a good start. In the modern world, the use of AI (no need to abbreviate here – those letters are by now ubiquitous) can be a helpful organizational tool, but a live person(s), overseeing process and procedures, with the institutional and regulatory expertise is essential.  A fleshy hub in the wheel that can manage and oversee the regulatory investigative process and interface both with the internal organization and the regulatory authorities, until we turn our autonomy over to the machine, is highly advised. Stated in more readable form: hire or assign compliance matters to organized and knowledgeable, team members with the required expertise. If none exists in-house, train or bring in a new hire with experience. The value will become apparent over time.

Read the full article on The Grapevine Magazine beginning on page 32.

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