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As the festive season approaches, many businesses are preparing to serve festive alcoholic favourites like mulled wine and Baileys hot chocolate to attract customers and add a touch of warmth to their offerings.

While these drinks are staples at Christmas markets, pubs, and cafés, it’s crucial to remember the licensing requirements associated with serving alcohol in any form.

Under the Licensing Act 2003, any drink with an alcohol strength exceeding 0.5% ABV at the time of sale or supply is classified as alcohol, requiring appropriate licensing authorisation.

If you plan to serve mulled wine, Baileys hot chocolate, or other festive alcoholic beverages, your business must be authorised for alcohol sales. This applies whether you operate from a permanent location, such as a pub or café, or a temporary stall at a Christmas market. Authorisation can be obtained through:

  • Premises licences: Alcohol sales must comply with the conditions of your premises licence, including permitted hours, designated consumption areas, and any additional stipulations, such as mandatory staff training.
  • Temporary event notices (TENs): For businesses or individuals without a premises licence, such as market vendors or pop-up stalls, a TEN is required. Each TEN covers a single event, allowing alcohol sales for up to seven days. Applications must be submitted to your local licensing authority at least 10 working days before the event or up to five days before using a late TEN.

Keep in mind that there is a limit on the number of TENs you can apply for annually, so plan accordingly if you are hosting multiple events.

Additional considerations for festive alcohol sales

To ensure compliance and a seamless customer experience, consider the following:

Staff training

Train all staff on the legal requirements surrounding alcohol sales. Serving alcohol, including mulled wine or Baileys hot chocolate, to anyone under 18 is illegal. Implement robust ID-checking procedures to mitigate risks, particularly in festive settings where younger patrons may attempt to purchase alcohol. Adopting schemes like Challenge 21 or Challenge 25 can be effective safeguards.

Alcohol off-sales

If you intend to sell pre-packaged bottles of mulled wine or Baileys for customers to take home, ensure your premises licence authorises “off-sales.” Similarly, include off-sales when applying for a TEN if required. This is distinct from “on-sales” authorisation for drinks consumed on-site.

Alcohol-free alternatives

Offering alcohol-free versions of seasonal drinks can broaden your appeal to families and customers seeking non-alcoholic options. Ensure these beverages are clearly labelled to avoid confusion and maintain compliance with your licence.

Late night refreshments

If you plan to serve hot drinks, be aware of the rules regarding late-night refreshments. Under the Licensing Act, any hot food or drink served between 11:00 PM and 5:00 AM requires a premises licence or TEN authorising this activity—even for non-alcoholic beverages. Ensure your authorisation covers this to avoid penalties.

Licensing inspections

During the holiday season, licensing authorities may conduct inspections to ensure compliance. Non-compliance—such as operating without the necessary licence or breaching licence conditions—can result in severe penalties, including unlimited fines, up to six months imprisonment, or licence revocation.

Final thoughts

Serving mulled wine and Baileys hot chocolate can create a festive atmosphere and drive business during the holiday season. However, compliance with licensing laws is essential to avoid legal repercussions. Review your premises licence, train your staff, and plan if you need a TEN. With the right preparation, you can provide a magical and compliant experience for your customers this Christmas.

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