Can a coffee store legally sell alcohol without the right license?

In December 2023 the Moutai Public Welfare Foundation and Cotti Coffee established two funds in Guizhou and authorized Cotti to sell Moutai Bu Lao Jiu and Maotan Jiu through exclusive channels, donating 10 yuan per bottle. Franchisees then reported being required to sell the liquor even though their licenses do not list alcohol sales.

After the two-certificates-in-one reform for alcohol licensing, a business scope must explicitly include alcohol sales. Stores selling outside that scope face operating-beyond-scope risk, so whether Cotti outlets can legally sell the two products has become a focus of industry attention and a test of franchise compliance.

The lingering warmth of Luckin's collaboration with Moutai has not yet faded, and Cotti Coffee has also quickly cut into the alcohol track. In December 2023, the Moutai Public Welfare Foundation and Cotti jointly established two funds at the Moutai Hotel in Guizhou, and authorized Cotti to exclusively sell Moutai Bu Lao Jiu and Maotan Jiu, donating 10 yuan for every bottle sold. However, on social platforms, franchisees have successively reported that stores were required to sell these two liquors, but the business scope of their business licenses and food business licenses does not include alcohol sales, posing a risk of operating beyond scope. After the "two certificates in one" for alcohol business licensing, the business scope must explicitly include alcohol sales. Whether Cotti stores can legally sell alcohol has become a hot topic of industry attention.

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I believe everyone knows that Luckin Coffee and Moutai have jointly launched cross-industry collaboration products twice in the past six months, but as a "fellow competitor," Cotti Coffee is also closely following suit.

According to media reports, on December 11, 2023, the Moutai Public Welfare Foundation and Cotti Coffee officially established the Moutai Bu Lao Jiu (Hua Zhi Jiu) Youth Employment Fund and the Maotan Jiu (Gu Zhi Huan) Rural Revitalization Fund at the Moutai Hotel in Guizhou, and the two liquor products, Moutai Bu Lao Jiu and Maotan Jiu, were also authorized for exclusive channel sales by Cotti Coffee. Cotti Coffee will contribute 10 yuan per bottle from the sales of these two liquors into the fund. The portion below 10 million yuan per year will be made up by Cotti Coffee, and when it exceeds 10 million, there will be no upper limit.

Recently, a post on social networks about "Cotti Coffee calling on franchisees to sell alcohol" sparked discussion among netizens. This netizen said that after Cotti Coffee carried out internal adjustments, some franchisees' stores could not independently order products, including the two Moutai health liquors, Moutai Bu Lao Jiu and Maotan Jiu, and the franchisees stated that the stores' food and beverage certificates could not sell alcohol products.

In response, in the comments section, one netizen said in surprise: "Has Cotti already become this outrageous?" Afterwards, someone claiming to be a Cotti partner said, "The business license clearly states that it does not include self-brewed alcohol," but the liquor products that needed to be sold this time had already arrived at the stores.

At this time, some netizens also raised questions, wondering whether the business licenses and operating licenses of various franchisees include the item "alcoholic beverages," and whether this counts as operating beyond scope.

At present, most Cotti Coffee stores have listed and are selling the two products from the Moutai cooperation project, "Moutai Bu Lao Jiu" and "Maotan Jiu." However, according to the food safety files uploaded by randomly selected Cotti Coffee stores on a certain ordering platform, their business scope does not include alcohol sales. The business scope only shows prepackaged food sales (excluding refrigerated and frozen food) and self-made beverage sales (excluding self-brewed alcohol).

Alcohol sales were previously a strictly controlled business activity and required a corresponding alcohol business license. According to relevant policy announcements, starting from July 10, 2023, the business license for alcohol commodities was included in the scope of food business licensing, and alcohol commodity wholesale licenses and alcohol commodity retail licenses are no longer issued separately, which is the so-called "two certificates in one." However, the business scope must include alcohol sales.

Since the business scope in the food business licenses of most Cotti Coffee stores does not include alcohol sales, this means these stores may face risks.

In short, Cotti Coffee should strengthen cooperation and management with franchisees to ensure compliance with relevant regulations on alcohol sales. Only by conducting business legally and compliantly can it maintain fair market competition and the legitimate rights and interests of consumers.

Image source: Internet

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The above content is compiled by CoffeeHunters, a coffee news website.