Business and consumers are both discovering why they like the idea of taking another look at alternatives to traditional cocktail spirits.

One simple reason......Many taste, look and smell like spirits!

Another reason...Tax and Fee Rates

The federal government collects approximately $1 billion per month from excise alcohol taxes on spirits, beer, and wine. Taxes on spirits are significantly higher than beer and wine at $13.50 per gallon, while beer is taxed at $18 per barrel and wine is $1.07-$3.40

per gallon. This is because spirits have higher alcohol content than the other categories.

Federal excise tax rates on beer, wine, and liquor are as follows:

  • Beer   $18.00 per 31-gallon barrel, or $0.05 per 12-oz can 
  • Wine   $1.07 - $3.40 per gallon, or $0.21 - $0.67 per 750ml bottle, depending on alcohol content 
  • Distilled Spirits   $13.50 per proof-gallon†, or $2.14 per 750ml 80-proof bottle 


† A proof gallon is a gallon of liquid that is 100 proof, or 50% alcohol. The tax is adjusted, depending on the percentage of alcohol of the product.

Some states like  Washington has the highest spirits tax in the United States at $33.22 per gallon. This is over $10 more than the second-highest tax in the state of Oregon at $21.95. Following these two states is Virginia with $19.89, Alabama with $19.11, and Utah with $15.92.

Liquor Licenses

First Step Beverage wine-based products allow businesses and venues to serve all the popular cocktails and mixed drinks without requiring a liquor license. We pride ourselves on providing exceptional innovative products and solutions for profitable

adult beverage services.


A Wine-based liquor alternatives allow businesses and venues to serve real cocktails without a mixed beverage permit, opening new revenue opportunities and avoiding the heavier tax burdens. First Step Beverage proudly supports an extensive line of spirit alternatives, from wine-based to non-Alcoholic allowing you to craft any cocktail imaginable. 

Now you can legally serve amazing cocktails with only a wine and beer permit and more profitably than ever.


The wine-based First Step Beverage product line offers retailers with Beer/Wine licenses the exciting opportunity to sell cocktail solutions using alternative alcohol. This assortment allows establishments to further meet the wants of the adult beverage

consumer while gaining a strong product margin.

Are you interested in changing the game and offering your customers something amazing?

Looking for more profitable sales?


Contact us at Sales@FirstStepBeverage.co for alternative solutions to your bar menu.

DTC Is Killing Adult Beverage Brands. Here's How to Survive It.

By Michael Halsey • October 8, 2025
Let’s get something out of the way upfront: Direct-to-consumer (DTC) should be a launchpad — not a landmine. But for too many adult beverage brands, it’s the latter. You build a beautiful brand, your story resonates, your bottle looks great on a bar cart... and then the orders start coming in. Cue the chaos: late deliveries, regulatory nightmares, warehouse meltdowns, refund requests, and a customer service inbox full of “where’s my order?” emails. Sound familiar? You’re not alone. In the last two years, I’ve worked with dozens of emerging brands — from tequila to canned cocktails to adaptogenic elixirs — and nearly all of them stumble at the same point: getting the product from warehouse to consumer legally, quickly, and cost-effectively. This isn’t a minor operational detail. It’s the difference between DTC working for you — or working against you. And if you’re a founder or brand leader who's feeling buried in the operational weeds, wondering if there’s a better way to scale this mountain, I’ve got good news. There is. Let’s break it down.

Scaling or Sinking: Why Beverage Brands Fail (and How Winners Survive)

By Michael Halsey • September 25, 2025
By Michael Halsey, First Step Beverage Walk into any liquor store and you’re in a graveyard. Bottles everywhere, each with a story, a hype cycle, maybe even some awards. Most of them? Dead brands. A few are zombies—still technically alive, but hemorrhaging cash while waiting for an acquirer who will never show up. Here’s the kicker: it’s almost never because the liquid sucked. I’ve tasted some of the best tequila, RTDs, craft lagers, and “functional wellness tonics” from brands that don’t even exist anymore. They failed for one simple reason: they never figured out how to build a real business. And that’s the part no one wants to talk about. Beverages are a knife fight in a dark alley. One wrong step—signing with the wrong distributor, going all-in on a doomed DTC bet, letting ops bloat—and you’re done. But the survivors? They’re not lucky. They’re disciplined. They’ve traded hype for sustainability, vanity metrics for KPIs, siloed fiefdoms for integrated leadership. They’ve built a new playbook.

Unlocking Growth in Agave Spirits: Why Transparency, Tech & Trust Will Define the Next Era

By Michael Halsey • September 10, 2025
Unlocking Growth in Agave Spirits: Why Transparency, Tech & Trust Will Define the Next Era 

Why Old-School Cocktail Practices Are Holding Your Bar Back (And How to Fix It)

By Michael Halsey • September 10, 2025
Why Old-School Cocktail Practices Are Holding Your Bar Back (And How to Fix It) 

Capitalizing on the Rise of Low-Alcohol and Non-Alcoholic RTD Spirits: A Strategic Opportunity for Retail Executives

By Michael Halsey • October 7, 2024
low-alcohol and non-alcoholic Retail Opportunity

deadmau5 partners with Coco Vodka

By Mike Halsey • December 19, 2022
deadmau5 (Joel Zimmerman) has announ ced that he has partnered with CoCo Vodka, The Original Hard Coconut Water™, for his first-ever liquor endorsement. The hard beverage will be available for purchase within the coming weeks.

Passion Tree Hard Seltzers is Making Unprecedented Movement in The Hard Seltzer Space

December 15, 2022
Passion Tree Hard Seltzers is Making Unprecedented Movement in The Hard Seltzer Space
2021 Rosé, 2020 Chardonnay, 2020 Cabernet Sauvignon, and 2019 Pinot Noir are all recognized by the d

Fresh Vine Wine Recognized with Four 2022 Sommeliers Choice Awards

December 12, 2022
2021 Rosé, 2020 Chardonnay, 2020 Cabernet Sauvignon, and 2019 Pinot Noir are all recognized by the distinguished association of top sommeliers and on-premise wine buyers
Passion Tree- A Great Taste & Positive Impact of 1 case = 1 tree

The Story of the People’s Seltzer

By FirstStepBeverage • October 22, 2022
Passion Tree is directly connected to a positive environmental initiative through our commitment towards planting one tree for every case sold. “Drinking for a cause” has motivated consumers to make the switch over from their traditional seltzers to ours.
Just Enough Wines- A sustainably minded brand created for people to enjoy anywhere, at any given tim

Just Enough Wines

By Mike Halsey • October 22, 2022
Just Enough Wines- A sustainably minded brand created for people to enjoy anywhere, at any given time, with just about anyone. With their Gluten-Free, Non-GMO, Vegan-friendly, and no added sugars or concentrates formula, along with their six delicious wine flavors that go through an incredibly extensive taste testing process that ensures maximum top-tier quality. Their six current flavor offerings are Pinot Noir, Chardonnay, Red Blend, Rosé, Brut Bubbles, and Rosé Bubbles. All tasting incredibly delicious and like they came right out of an expensive bottle of wine.