New 2024 California Redemption Value (CRV) Requirements

Starting January 1, 2024, wine and distilled spirits products will be added to the California Beverage Container Recycling Program (BCRP). The Bottle Bill will require beverage containers to have a California Redemption Value (CRV) ranging from $0.05 to $0.25. Beginning July 1, 2025, producers will be required to include “CA Redemption Value,” “California Redemption Value,” “CA Cash Refund,” “California Cash Refund,” or “CA CRV” on all beverage containers sold or offered for sale in California. 

The new regulations are being touted as the largest change to the California Wine Industry since the end of prohibition. And It is set to affect nearly 50% of wine producers in America – 4,400 CA wineries and 1,100 CA Type 82 Licensees (CA direct shipping license).  

Despite numerous webinars hosted by CalRecycling and others, many are unaware of this significant change. Even prominent producers are being caught off guard, seemingly oblivious to what's coming. What's crucial to note is that the maximum civil penalty is also rising significantly, from $1,000 to $5,000, and in cases of intentional violations, it can go as high as $10,000. 

This situation has prompted producers to contact Vinoshipper, expressing desire to cancel their Type 82 licenses. They foresee the challenges of selling in California too great in the future. This move not only impacts their operations but also means the state misses out on vital tax revenue. Consumers may also lose out on the expanded choices that Direct-to-Consumer (DTC) sales provide. 

Vinoshipper Involvement

The new legislation made its debut in February 2022, and that's when it popped up on our radar. Since then, we've been closely collaborating with CalRecycle, staying ahead of the curve. Our goal? To ensure that Vinoshipper would be able to act as an agent who can handle CRV collection and payments on behalf of producers selling to California consumers using our platform, much like the Marketplace Facilitator rules.  

This approach guarantees precision in collecting fees from consumers and ensures the correct remittance to the state. Plus, we've streamlined the entire process through a centralized system, slashing administrative hassles. 

How Vinoshipper Can Help Beverage Alcohol Producers 

For all current and future Vinoshipper clients, whether they're based in California or utilizing a Type 82 license to ship into the state, we've designed a streamlined system that simplifies the new requirements, ensuring a seamless experience. 

There are two forms producers will have to fill out, sent by email:  

  1. Beverage Manufacturer / Distributor Registration Form – to register your business with the state and to determine if you are a manufacturer or distributor. (All Wine and Spirits Beverage Alcohol Producers) 

  2. Pay on Behalf Form – to designate Vinoshipper as the agent that collects and remits e-commerce sales CRV to the state (Vinoshipper Clients exclusively). 

Current Vinoshipper clients have received this paperwork already part populated with their essential information, making it a straightforward task to complete. Once filled out, they will submit it to Vinoshipper. From there, we take charge, promptly forwarding the documents to CalRecycle, ensuring they receive a smooth flow of applications between now and the New Year. 

2024 and Beyond 

When transactions start on January 1st, for those who have completed their paperwork, Vinoshipper will begin collecting CA CRV from customers and remitting the CRV to the state. Clients can choose whether to pass this fee to customers or pay it themselves. 

Simplified Success 

At Vinoshipper, we've established ourselves on the foundation of compliance. Our platform is meticulously crafted to enhance our clients' lives, providing a user-friendly experience. We empower our clients to leverage technology's full potential while expanding their brands’ reach. 

For all Vinoshipper producers, it's business as usual. You can keep selling to California customers, fully compliant within state rules. We promise you this peace of mind, it's what's we’ve built our reputation on over the years.  

If you're a California seller or U.S. wine producer shipping to California with a Type 82 license and want to get ready for the 2024 changes, reach out to us at customerservice@vinoshipper.com. We're here to help you succeed. 

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