Off-Site Storage Permits, Branch House Permits, and Wholesaler Licensing in Colorado

We get constant inquiries about storing beer, wine, and spirits here. The typical customer is a brewery that doesn't have enough cooler space on-site to keep up with what they're producing. You'd be surprised how many companies don't realize they need a permit to store alcohol off-site — and equally surprised at how many storage facilities don't know they're supposed to make sure their customers have the required licensing. I've worked for wine importers and distributors in the past, both in Colorado and nationally, so this is an area where we have genuine expertise. The most common scenario we see: a company is ready to move product immediately. When we ask about their licensing, they assume we mean their wholesale or manufacturing license — but what we're actually asking about is their branch house permit.

There are several paths worth understanding depending on your license type and what you plan to do at the outside location.

The Off-Site Storage Permit

The off-site storage permit is held by the licensee— the brewery, winery, distillery, or distributor — not the warehouse itself. It's an endorsement on your existing license that authorizes you to store your product at a specific approved location outside your primary licensed premises.

You cannot simply start moving product to a third-party warehouse and sort out the paperwork later. The permit must be approved before product is stored there.

What the Approval Process Requires

The Colorado LED requires three things to approve an off-site storage location:

Because the permit is held by the licensee, the responsibility for obtaining it falls entirely on them. All we can do is provide the information they need and be clear about what happens if they don't follow through. We've had customers skip this step and get fined. We've even had a customer have their product seized because they didn't handle the licensing properly. On the other side of that, we have a strong relationship with the Colorado Liquor Enforcement Division — they've actually recommended customers store product here because they know we do things the right way.

The Branch House Permit

For licensed wholesalers and distributors, Colorado offers a separate path: the branch house permit. A branch house is a secondary location operated by a distributor for the purpose of storing and distributing alcohol — essentially a satellite warehouse under the distributor's existing license.

Where the off-site storage permit is purely for storage, a branch house permit covers a location that functions as an active distribution point — receiving product, maintaining inventory, and staging outbound deliveries. Distributors who need a Denver-area warehouse to serve the Front Range market, for example, might use a branch house permit to operate out of a third-party facility rather than building or leasing their own.

Like the off-site storage permit, the branch house approval process requires a lease agreement with the facility, a map or diagram of the specific area to be used, and an inspection by the LED before operations can begin. The branch house is treated as a licensed premises in its own right, meaning it must remain compliant on an ongoing basis — not just at the time of initial approval.

If you're a distributor considering a branch house arrangement, it's worth talking to a compliance attorney early. The licensing structure, recordkeeping requirements, and operational rules for a branch house are more involved than a simple storage endorsement.

We have multiple distributors with branch house permits tied to our location. Each is assigned a specific set of bays and floor space to store product and build their orders. The key rule is that their product stays in their designated area — we can't store it anywhere else in the facility. The most common issue we see comes when a company grows faster than expected. They don't realize they need to file for additional approved storage space as they expand. We tell every new branch house customer the same thing: apply for more space than you think you need. It's much easier to do it upfront than to go back through the approval process when you're already running out of room.

Obtaining a Colorado Wholesaler License at FMG Denver

For out-of-state distributors, importers, or manufacturers looking to establish a distribution presence in Colorado, obtaining a Colorado wholesaler license requires a physical licensed premises in the state. This is where FMG Denver can serve as your foundation.

Rather than leasing your own standalone warehouse and building out an operation from scratch, you can use FMG's facility as the licensed premises for your Colorado wholesaler license application. FMG provides the physical location, the lease documentation required by the LED, the facility diagrams needed for your application, and the infrastructure — dry and refrigerated storage, receiving docks, inventory management, and fulfillment — to actually run your Colorado distribution operation once you're approved.

This approach lets you enter the Colorado market without the overhead of a dedicated facility. Your wholesaler license is tied to FMG's address as your licensed premises, and FMG handles the day-to-day warehousing and logistics while you manage your sales relationships and compliance obligations.

The wholesaler license application process in Colorado still requires LED review, a background check, proof of your leased premises, and facility approval — but having an established, compliant warehouse already in place streamlines that process significantly. FMG has the documentation, diagrams, and familiarity with the LED process ready to go.

We currently have multiple wholesaler licenses tied to our address. Each customer gets a dedicated area — and unlike branch house distributors, wholesalers don't need a separate off-site storage permit on top of their wholesale license. We've worked with tequila companies importing from Mexico and wine companies bringing product in from Europe. We give them access to their inventory, the flexibility to pull product when they need it, and hands-on help staging orders for their distribution partners. For startups that aren't ready to lease their own space, this setup is especially appealing — a dedicated section of an established, compliant warehouse without the overhead of running your own operation.

Why This Matters for Choosing a Warehouse

Not every warehouse is going to be comfortable going through this process with you. The inspection means the facility is on the record — their space, their layout, their conditions are now documented with the state. A good warehouse partner will understand this and work with you to prepare the lease language, provide accurate floor plan information, and be available for the inspection.

If a warehouse is hesitant to participate in the LED process, that's a red flag. We've been through this process many times and we welcome it. The LED knows our facility, knows how we operate, and has even sent customers our way because of that relationship. That's not something you build overnight — it comes from 30 years of doing things the right way.

What Happens After Approval

Once the LED approves your permit or license, the approved location is tied to your license. If you want to change warehouses, add a second location, or significantly change the storage area within the same facility, you'll need to go back through the process — new lease, new map, potentially a new inspection.

Keep your permits current. Storing product at an unapproved location — even temporarily — is a compliance violation that can affect your license.