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Kentucky Department of Alcoholic Beverage Control

Our mission is to protect the public welfare and interest by regulating the alcoholic beverage industry through licensing, education and the enforcement of alcohol laws and regulations, as well as combating youth access to alcoholic beverages and
tobacco products in the Commonwealth.  


Retailer Coupons for Alcohol

Many businesses are taking advantage of new coupon marketing companies such as Groupon, Social Living and Half-Off Deals. While these sites are great for promotions, retail licensees need to be aware that coupons for alcohol are not permitted.

KRS 244.105 and 804 KAR 1:120, Section 3 permit gift cards and gift certificates, which may be redeemed by persons over age 21 for alcoholic beverages. However, no retailer is permitted to issue a coupon or its equivalent. KRS 244.461(1) prohibits the issuance of coupons except those by manufacturers and importers of distilled spirits and wine. Coupons issued by manufacturers and importers of distilled spirits and wine must be for off-premises consumption sales only. Subsection (2) of the statute authorizes the consumer to redeem subsection (1) coupons “at the point of purchase, or by mail-in certificate by which the consumer receives a cash refund or nonalcoholic beverage merchandise from the manufacturer, importer, or clearinghouse.”  Subsection (3) prohibits malt beverage coupons in all circumstances. Groupons, Social Living, rewards cards and loyalty cards all come within the meaning of “coupon.”
A “coupon” entitles the customer to a discount on a purchase. A discounted gift certificate is the equivalent of a coupon.  As such, it is a violation of KRS 244.461, because the consumer receives a purchase discount on alcoholic beverages by use of the certificate. The advertisement of such a promotion violates 804 KAR 1:100, Sections 8 and 9.