Introduction:Recently, Luckin’s rival Luckin-style coffee chain Kudi Coffee obtained exclusive authorization from Kweichow Moutai to sell two health wines, and pledged to donate 10 yuan for every bottle sold. However, many franchisees have reported that their business licenses and food operation permits do not cover alcohol sales, raising concerns about “operating beyond the approved scope.” This article explains the compliance requirements for alcohol sales and analyzes the actual business scopes of Kudi stores to help readers understand potential risks and coping strategies.

Following the buzz created by Luckin’s collaboration with Moutai, Kudi Coffee quickly followed suit and entered the alcohol market. In December 2023, the Moutai Charity Foundation and Kudi Coffee jointly established two funds at the Moutai Hotel in Guizhou — the Moutai BuLaoJiu (Flower’s Longevity) Youth Employment Fund and the Maotan Liquor (Valley’s Joy) Rural Revitalization Fund. Kudi Coffee was authorized as the exclusive sales channel for these two Moutai health wines. It is reported that for every bottle sold, Kudi will donate 10 yuan, and if the annual donation falls short of 10 million yuan, Kudi will make up the difference, with no cap on amounts exceeding that.

However, recently on social media platforms, some Kudi franchisees reported that their stores were required to sell Moutai BuLaoJiu and Maotan Liquor, but their business licenses and food operation permits do not include alcohol sales in their approved business scope, potentially constituting “operating beyond the approved scope.” Especially after the implementation of the “two-in-one license” policy for alcohol sales, if the business scope does not explicitly state alcohol sales, it could face compliance risks.

It is understood that some franchisees mentioned that following internal adjustments at Kudi, stores can no longer independently choose products, including these two Moutai health wines, and their catering-related licenses have not been approved for selling alcoholic beverages. One netizen questioned: “The business license clearly states that it does not include self-brewed liquor, but the liquor has already been delivered to the store.” This has drawn public attention to whether Kudi stores can legally sell alcohol.

In fact, currently on some ordering platforms, randomly checked food safety profiles uploaded by Kudi Coffee stores show that their approved business scope only includes “pre-packaged food sales (excluding refrigerated or frozen food)” and “self-prepared beverage sales (excluding self-brewed liquor),” with no mention of alcohol sales. This means that if stores actually sell Moutai BuLaoJiu and Maotan Liquor, they may be violating current regulations.

It is worth noting that in the past, a separate alcohol operation permit was required for alcohol sales. But starting from July 10, 2023, the policy changed to a “two-in-one license,” meaning the sale of alcohol products is now included within the scope of food operation permits, and separate wholesale and retail alcohol licenses are no longer issued. A separate alcohol license is no longer required,provided that the business scope in the business license and food operation permit clearly lists “alcohol sales.”.

However, judging from the current reality of most Kudi stores, their food operation permits do not include alcohol sales, which puts these stores in a legal and regulatory gray area when selling Moutai health wines. Industry experts point out that if the business scope is not adjusted in time, stores may face fines, suspension for rectification, or even impact the overall brand image.

For Kudi Coffee, how to ensure that franchisees’ business licenses and operation permits comply with the latest regulations while expanding its product lines is an urgent issue to address. Strengthening guidance and management of franchisees to ensure all sold products are within the legal scope will not only help maintain fair market competition, but also better protect consumer rights.

In summary, while Kudi Coffee’s collaboration with Moutai to promote health wines has social public welfare value, greater caution is needed in execution. Before receiving sales requests, franchisees should proactively confirm whether their licenses cover alcohol sales to avoid unnecessary legal risks arising from operating beyond their approved scope.

The above content is compiled by CoffeeHunters, a coffee news website.