Michigan Alcoholic Beverage Market: Regulations, Statistics, Trends, and Wholesalers

Michigan, known for its Great Lakes and automotive industry, has cultivated a thriving and distinctive beverage alcohol market. As a control state, Michigan’s alcohol system is regulated by the Michigan Liquor Control Commission (MLCC), balancing tradition with modern market demands.

The state’s unique blend of Midwestern hospitality and industrial grit has fostered a dynamic marketplace where local craft producers thrive alongside national brands, offering consumers an impressive array of choices that make it a promising market for small beverage alcohol suppliers.

We’ve prepared a guide to the Michigan market which covers the following topics:

• Consumption trends
• The most popular alcohol categories
• Local guidelines

If you need help establishing your presence in Michigan, provide your information below, and we’ll contact you to share more on how we can help.

At Park Street, we can help anyone looking to enter the market or expand their services in Michigan.

Consumption Trends In Michigan

Michigan is one of the largest control markets in the United States, and in recent years, spirit sales have overtaken wine sales in the state.  In 2023, Michigan sold  9 million 9-liter cases of spirits and 8.4 million cases of wine,  while the most recent statistics for beer show 77.2 million cases sold in 2022.

Michigan Spirits Consumption from 2019-2023 by 9-Liter Cases

Michigan Wine Consumption from 2019-2023 by 9-Liter Cases

Michigan Beer Consumption from 2018-2022 by 9-Liter Cases

Michigan State Alcohol Licensing

All U.S. states are regulated at a federal level according to the Federal Alcohol Administration Act. In the simplest terms, manufacturers, sometimes referred to as producers, make alcohol products. Wholesalers sell the alcohol to the retailers. Retailers sell the alcohol to consumers. While there are some exceptions to this flow of goods, this is the federally regulated route to market.

Michigan is a control state and sales are overseen by the Michigan Liquor Control Commission (MLCC), with sales exceeding $2.4 billion in 2023 and a population of 7.5 million legal drinking-age residents. As a control state, Michigan controls spirits on a wholesale level but allows authorized distribution agents (ADAs) to handle beer and wine to retailers. The state does not own retail outlets.

The state features around 250 licensed distillers and bottlers, according to the TTB. The state is also home to more than 400 breweries with active licenses, and over 200 wineries.

Additionally, there are over 9,700 alcoholic beverage off-premise retailers and 9,600 on-premise retailers in Michigan, according to the National Alcohol Beverage Control Association.

Michigan Label Registration

 Before selling spirits in Michigan, suppliers must register product labels with the MLCC. This includes submitting labels to the MLCC for approval, and ensuring they comply with Michigan’s labeling laws.

Price Posting

Beer: Manufacturers and wholesalers must file a schedule of cash prices to the retail licensee for all brands of case and keg beer in their market area.

Wine, mixed wine drinks, mixed spirit drinks: Manufacturers and wholesalers must file a schedule with the MLCC of net cash prices to retail licensees by kind, type, size and brand. Price changes must be filed with the MLCC before the effective date and such price changes must continue for two weeks after the effective date.

In-State Permits

Michigan Liquor Control Commission (MLCC) Manufacturer’s License: This is the primary license required to produce spirits in Michigan. It includes several types depending on your specific operations:

• Distiller’s License: For suppliers producing spirits.
• Small Distiller’s License: For suppliers who produce less than 60,000 gallons of spirits annually. This license is often less costly and has fewer regulatory burdens.

Out of State Permits

Michigan Liquor Control Commission (MLCC) Out-of-State Seller of Alcoholic Liquor License: This license allows out-of-state distillers, rectifiers, or importers to sell spirits to licensed Michigan wholesalers. It’s a key permit required to legally sell your spirits in the state.

Required Steps for Alcohol Suppliers Selling in Michigan

To enter Michigan, beverage alcohol brands must pursue a full listing. In Michigan, full listing submissions are handled in their own unique manner in accordance with state law.

Full Listings

Before submitting for a full listing in Michigan, there are several important requirements that must be fulfilled.

• It is essential to obtain COLA (Certificate of Label Approval) approval for the product to ensure compliance with labeling regulations.
• Complete and accurate product specifications must be submitted, including details such as volume and alcohol content.
• It is also necessary to identify an Authorized Distributing Agent (ADA) or bailment warehouse within Michigan that has agreed to store the brand’s inventory. Some prominent ADAs in Michigan include Imperial Beverage, General Wine & Spirits, and National Wine & Spirits.

Deadlines for Listing Submissions

The MLCC holds monthly meetings to review and approve listings, making it possible to submit products at any time for consideration in the following month. It is crucial to adhere to the submission deadlines and ensure that all necessary documentation and requirements are met to maximize the chances of approval.

Michigan State Alcohol Regulations

Shipping and Selling to Consumers

Direct Sales and Shipments of Spirits

Producers of spirits may not ship to consumers.

Small distiller’s license holders (60,000 gallon annual production cap of all brands combined) may sell brands manufactured on the licensed premises for consumption off the licensed premises, at a price posted by the commission. Additionally, small distillers may sell for consumption off the licensed premises at locations other than their licensed premises in limited situations coinciding with a tasting.

Direct Sales and Shipments of Wine

Holders of a Direct Shipper License may ship wine to Michigan consumers in quantities no more than 1,500 9-liter cases, or 13,500 liters in total, in a calendar year.

Direct Shipments by Retailers

Off-Premise: A Michigan retailer holding a specially designated merchant (SDM) license may deliver beer, wine, or mixed spirit drink products to a consumer in any of the following ways:

• By using its own employees who have successfully completed a training program;
• By common carrier, if the retailer qualifies
• By using third-party delivery services to municipalities in Michigan that are surrounded by water and inaccessible by motor vehicles as long, as the delivery service is approved by the Commission
• By use of a third-party facilitator service, if the retailer qualifies

On-Premise: On-premises retailers may fill and seal qualified containers with alcoholic beverages for off-premises consumption under certain conditions, including:

• The outside of the container bears the following label: “Contains Alcohol. Must be delivered to a person 21 years of age or older”
• The alcoholic beverage is delivered by the retailer’s employee or a third-party facilitator service.

Michigan Spirits Volume By Category – 2023 Data

Spirit trends in Michigan by volume and dollar sales in 2023.

Source: Beverage Information Group

Michigan Wine Volume Sales By Category – 2023 Data

Wine trends in Michigan by volume sales in 2023

Source: Beverage Information Group

Michigan Beer Volume Sales By Category – 2022 Data

Beer trends in Michigan by volume sales in 2022

Source: Beverage Information Group

FAQs on Michigan Beer, Wine & Spirits Sales

Buying Alcohol In Michigan – Hours, Locations & Taxes

Are you a consumer looking for info on when and where you can buy alcohol in Michigan? The answers provided below should help you better understand how things work within the state and the applicable laws.

FAQs on Buying Beer, Wine & Liquor in Michigan

Here at Park Street, we provide various alcohol brand services i.e. importing, legal compliance, and other services, that allow you to focus on marketing and brand building. We handle everything else! If you’re interested in learning more about the services at Park Street Companies, then please feel free to complete the form below.