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

Moreso than most states, Colorado’s taprooms and tasting rooms have become popular destinations attracting suppliers and consumers nationwide thanks to the market’s early lead in popularizing craft beer, followed shortly by its embrace of the craft spirits category.

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

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

Colorado has an approximate population of 5.8 million people, as of 2023, with 4.3 million within the legal drinking age bracket.

If you need help establishing your presence in Colorado, 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 Colorado.

Consumption Trends In Colorado

Alcohol consumption in Colorado changes and fluctuates depending on the category of alcohol. For instance, over the previous five years, the CAGR for spirits was 8.78%, while beer only grew at 0.76% . Below are some charts displaying the year-over-year trends for each major category.

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

Colorado Wine Consumption from 2018-2022 by 9-Liter Cases

Colorado Beer Consumption from 2018-2022 by 9-Liter Case

Colorado State Alcohol Licensing

All U.S. states are regulated at a federal level according to the Federal Alcohol Administration Act. At a state level, the Colorado Liquor Enforcement Division oversees and regulates the beverage alcohol market in Colorado. The agency is responsible for licensing, tax collection and auditing, fee collection, and enforcing the state’s laws and regulations. It oversees all tiers including:

• Manufacturers (breweries, wineries, distilleries, cideries, meaderies, and rectifiers)
• Wholesalers, also known as distributors
• Retailers (on-premise and off-premise)

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.

All businesses that deal with manufacturing, distributing, selling, or importing alcohol in Colorado must be licensed. In Colorado, all goods must come to rest at a wholesaler’s warehouse before reaching a retailer or consumer.

As of 2023,  there were over 160 licensed distillers and bottlers, according to the Alcohol and Tobacco Tax and Trade Bureau (TTB)  more than 400 breweries with active licenses, and over 150 wineries in Colorado

Common Licenses for Manufacturers in Colorado

One thing that makes Colorado a unique market for distilleries, in particular, is the state’s Distillery Pub License. This allows distilleries within the state to operate more like pubs, serving their own spirits, along with food, to consumers on-premise.

Manufacturer Licenses (Distilleries) – license holders may conduct tastings and sell only the spirits they manufacture directly to customers on the licensed premises of the distillery and at one other approved salesroom location for consumption on and/or off the licensed premises.

Colorado Distillery Pub License – a retail-level liquor license that allows distilleries to sell their own products on the premises. Under this license distilleries must:

• Serve meals
• Gross at least 15% of on-premises food and drink income from the sale of food
• Limit self-wholesale sales of the spirituous liquors it ferments and distills on the licensed premises to not more than 2,700 liters per product per year
• Limit its total annual production of spirits to 875,000 liters

Out-of-State Brand Requirements:

Nonresident Manufacturer and Importer Licenses – these licenses allow the licensee to import alcohol into Colorado and sell it to licensed wholesalers based on the type of alcohol produced.

Colorado State Alcohol Regulations

Colorado is an open state, meaning private entities handle the sale and distribution of alcoholic beverages but are still regulated by state legislators.

Shipping and Selling to Consumers

Only wine may be shipped direct-to-consumer from suppliers, while shipping spirits and malt beverages is prohibited in Colorado.

Three retail liquor license types—fermented malt beverage and wine retailer, retail liquor store and liquor-licensed drug store—are permitted to deliver alcohol beverages to consumers at locations off the licensed premises.

Until  June 30, 2025, specified on-premises retailers (including restaurants and taverns) may deliver alcoholic beverages to a customer for consumption off-premises or sell alcoholic beverages as part of a takeout order. This temporary law was passed during the COVID-19 pandemic.

Required Procedures for Alcohol Suppliers Selling in Colorado

Label Registration

All alcohol products sold in Colorado must have a label registration approved by the Colorado Liquor Enforcement Division in order to ensure products are in compliance with federal and state label regulations. These registrations carry fees of up to $100.

Price Posting

Price posting is not required at the retail or wholesale level.

Colorado Spirits Volume Sales By Category – 2023 Data

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

Source: Beverage Information Group

Colorado Beer Volume Sales By Category – 2023 Data

Beer trends in Colorado by volume and dollar sales in 2022.

Source: Beverage Information Group

Self-Pitch Distribution Model

Finding the right distributor is often cited as one of the most difficult challenges to building a brand in the U.S. There are thousands of brands and industry consolidation has led to fewer distribution companies to choose from in each market.

As such, one option available to emerging brands is to use Park Street’s self-pitch distribution model.
The self-pitch distribution model is similar to the three-tier traditional distribution model where product is delivered
to retailers, but the key difference is that sales and marketing is handled by the supplier.

Park Street’s CEO Explains Self-Pitch Distribution

Selling Alcohol In Colorado

The sale of alcohol in the state of Colorado is controlled by The Colorado Liquor Enforcement Division. They oversee licensing for the industry as well as liquor control laws in the state.

In order to sell alcohol in the state of Colorado, you must first obtain a license. It’s critical to understand the laws and regulations set by the state, county, and local law enforcement, whether you’re a wholesaler, retailer, or consumer. Below you will find a section with frequently asked questions and their answers. If you have any further questions, please do not hesitate to contact the Park Street Team. Remember, laws can vary by county and city. Click here to reach out to us via email.

Note: We are continuously trying to add and improve answers to the questions published below. Should you have any additional questions please don’t hesitate to reach out to us.

FAQs on Colorado Beer, Wine & Spirits Sales

Buying Alcohol In Colorado – Hours, Locations & Taxes

Looking for information on the purchasing of alcohol in the state of Colorado? If so, then please refer to the questions and answers provided below.

FAQs on Buying Beer, Wine & Liquor in Colorado