California Governor Signs Domestic Soju Bill

California Gov. Gavin Newsom recently signed AB-2069 into law, which will allow California on-premise beer and wine licensees to offer domestically produced soju and shochu to their customers. Previous privileges were restricted to offering only imported Korean soju or Japanese shochu.

“We’re extremely happy that California Assembly, Senate and the Governor unanimously supported AB-2069 that opens the market up to domestically produced soju and shochu,” said Kris Koenig, distiller at Chico-based Golden Beaver Distillery. “It’s time that the consumer has a chance to discover low alcohol content spirits that are made right here in California.”

The new rule allows licensed restaurants to offer spirits containing up 24% alcohol by volume that are derived from agricultural products like rice.  The two most common spirits that fall under this description are soju and shochu with alcohol content ranging from 12%-24% ABV.

“Our Bībā Soju won Best Asian Spirits at 2022 Sunset Magazine Spirits Competition and in 2023 was Soju of the Year at the John Barleycorn Spirit Awards but our wholesaler couldn’t sell into on-premise restaurants because of the old rule. This levels the playing field and opens the market up to us, ultimately giving the consumer more choices,” said Koenig.

The bill was sponsored by Assemblymember James Gallagher and a group of bipartisan Assemblymembers and Senators. It cleared both chambers unanimously and was enacted into law yesterday by Governor Newsom.

“Assemblymember Gallagher and his staff really cared about the position the old rule put distillers and the consumer in. We can’t thank them enough for getting the rule amended to include domestic producers,” stated Koenig

The bill was support by Distilled Spirits Council of the United States, American Distilling Institute, American Craft Spirits Associate, California Distillers Association, California Rice Commission, Corning and Company, Yobo Drinks, DC Beverage, Far West Rice, Patio 29, and St. George Spirits. The effort was spearheaded by Koenig, one of the founders and the distiller at Golden Beaver Distillery.

The new rule reads:

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1.

Section 23398.5 of the Business and Professions Code is amended to read:

23398.5.

Any on-sale license, issued pursuant to this division that authorizes the sale of wine, also authorizes the sale of all of the following:

(a) Soju, an imported Korean alcoholic beverage that contains not more than 24 percent of alcohol by volume and is derived from agricultural products.

(b) Shochu, an imported Japanese alcoholic beverage that contains not more than 24 percent of alcohol by volume and is derived from agricultural products.

(c) Domestically produced soju and shochu, alcoholic beverages that contain not more than 24 percent of alcohol by volume and are derived from agricultural products.

The co-sponsors of the bill:

Assemblyman Juan Alanis
Assemblymember Dr Joaquin Arambula 
Assemblymember Damon Connolly
Assemblymember Stephanie Nguyen
Assemblyman Jim Patterson
Assemblyman Tri Ta
Assemblywoman Marie Waldron
Senator Brian Dahle
Senator Brian W Jones

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