Until July 1, 2016, every bottle of wine sold for off-premises consumption in Tennessee had to pass through a licensed retail package store. That changed when the Wine in Grocery Stores (WIGS) law took effect after local referendums in 78 municipalities authorized retail food stores to stock wine alongside their regular inventory. The shift restructured a marketplace that had been governed exclusively by the Tennessee Alcoholic Beverage Commission (TABC) since its creation, and it forced specialty wine stores to distinguish themselves from supermarket wine aisles through curation, expertise, and customer education. Six years into that new reality, dedicated wine retailers across the state continue to thrive by offering selections that emphasize small producers, allocated bourbons, and staff-guided pairing recommendations that no grocery endcap can replicate.
The regulatory framework for wine stores remains anchored in the TABC’s retail package store license, which permits the sale of liquor, wine, high-gravity beer, and standard beer at a single approved location. Licensees must generate at least 65 percent of total revenue from alcoholic beverage sales, a threshold that effectively prevents wine stores from drifting into general retail. Each license is valid for one year and must be renewed annually through the TABC. Tennessee law limits any individual to holding an ownership interest in no more than two retail package store licenses, a restriction designed to prevent chain consolidation and preserve locally owned storefronts. Employees must be at least 18 years old, and every clerk handling sales must complete certified responsible vendor training.
Retail package stores in Tennessee may conduct complimentary tastings during business hours, provided the store has notified the TABC of its intent to hold tastings at the time of application or renewal. Each sample is capped at two ounces for wine and high-gravity beer and one-half ounce for liquor. Store employees pouring samples do not need a separate server permit, which simplifies staffing for weekend tasting events that have become a core marketing tool for independent shops. Grocery stores, by contrast, face tighter restrictions: wine-only sales, Monday through Saturday between 8:00 a.m. and 11:00 p.m., with no sales on Sundays or major holidays (New Year’s Day, Thanksgiving, Christmas, the Fourth of July, and Labor Day). Those limitations give dedicated wine stores a scheduling and product-range advantage, particularly for customers seeking spirits, craft beer, or Sunday purchases.
Tennessee levies a privilege tax on wine at $1.21 per gallon. The state general fund receives 82.5 percent of that revenue, and the remaining 17.5 percent flows to county governments based on a formula that accounts for population and land area. Municipalities do not receive a direct share of wine privilege tax revenue from package store sales, a funding structure that has shaped local attitudes toward licensing. The standard 7 percent state sales tax applies to all retail alcohol purchases as well, so a $20 bottle of wine carries roughly $1.40 in sales tax before any applicable local sales tax increment.
Tennessee’s wine market benefits from a growing hospitality sector and a population that added 79,446 net residents between July 2023 and July 2024 (U.S. Census Bureau). Nashville’s restaurant scene, Knoxville’s proximity to Appalachian tourism, and Memphis’s blues-corridor nightlife each drive distinct consumer profiles. Independent wine stores in these markets compete not only with grocery chains but also with direct-to-consumer shipping from out-of-state wineries, which Tennessee permits under specific licensing provisions.
When selecting a wine store, verify that the retailer holds a current TABC retail package store license and ask whether staff have completed responsible vendor training. Stores that host regular tastings, maintain relationships with importers, and rotate seasonal selections typically offer the most informed guidance.
Top Wine Store Providers in Tennessee
1. Woodland Wine Merchant
- Address: 1001 Woodland St, Nashville, TN 37206
- Phone: (615) 228-3311
- Website: https://woodlandwinemerchant.com
- Rating: 4.8/5 (239 reviews)
- Services: curated wine retail, natural and sustainable wine sourcing, private off-site tastings, online ordering with curbside pickup, spirits and craft beer sales
- Description: Woodland Wine Merchant opened in 2007 in East Nashville under owner Will Motley and operates a second location in the Sylvan Park neighborhood. The shop focuses on artisan producers who practice natural and sustainable viticulture, rotating its inventory to reflect seasonal availability.
2. Frugal MacDoogal
- Address: 701 Division St, Nashville, TN 37203
- Phone: (615) 242-3863
- Website: https://frugalmacdoogal.com
- Rating: 4.7/5 (3,107 reviews)
- Services: wine retail, liquor sales, craft beer selection, single-barrel bourbon offerings, online ordering, event planning assistance
- Description: Frugal MacDoogal has operated from its 18,000-square-foot warehouse in Nashville’s Gulch neighborhood since 1983. The store stocks wines from around the world alongside a deep bourbon and whiskey selection, and its staff includes a WSET Level III certified wine specialist.
3. McScrooge’s Wines and Spirits
- Address: 307 N Peters Rd, Knoxville, TN 37922
- Phone: (865) 691-6463
- Website: https://mcscrooges.com
- Rating: 4.6/5 (1,040 reviews)
- Services: wine retail, bourbon and whiskey selection, barrel-pick exclusives, craft beer sales, online ordering with delivery, in-store tastings
- Description: McScrooge’s Wines and Spirits is a locally owned retailer in west Knoxville recognized for its dedicated bourbon wall and rotating barrel-pick releases. The store offers online ordering with local delivery and ships wine to states that allow direct-to-consumer alcohol shipments.
Frequently Asked Questions About Wine Stores in Tennessee
Q: What license does a wine store need to operate in Tennessee?
A dedicated wine and spirits retailer must hold a retail package store license issued by the Tennessee Alcoholic Beverage Commission (TABC). The license permits the sale of liquor, wine, high-gravity beer, and beer, and it must be renewed annually. At least 65 percent of the store’s total revenue must come from alcoholic beverage sales.
Q: Can wine stores in Tennessee offer free tastings?
Yes. Retail package stores may conduct complimentary tastings during regular business hours after notifying the TABC. Wine and high-gravity beer samples are capped at two ounces per pour, and liquor samples are limited to one-half ounce. Store employees do not need a separate server permit to pour tasting samples.
Q: How do wine store hours differ from grocery store wine sales hours?
Retail package stores set their own operating hours, which are typically broader than grocery store wine hours. Grocery stores may sell wine only between 8:00 a.m. and 11:00 p.m., Monday through Saturday, and cannot sell wine on Sundays or certain holidays. Package stores face fewer time restrictions and may sell wine, liquor, and beer during their posted hours.
Q: Does Tennessee allow wine to be shipped directly to consumers?
Tennessee permits out-of-state wineries and certain licensed retailers to ship wine directly to Tennessee consumers under specific TABC licensing provisions. Shipments must comply with age-verification requirements at delivery. Consumers should confirm that the shipper holds the appropriate Tennessee permit before placing an order.
Q: What taxes apply to wine purchases in Tennessee?
Tennessee levies a privilege tax of $1.21 per gallon on wine, collected at the wholesale level and built into the retail shelf price. The standard 7 percent state sales tax applies at the register, and local sales tax rates vary by county and municipality. Combined, these taxes can add approximately 9 to 10 percent to the shelf price depending on the purchase location.
Q: How many retail package store licenses can one person hold in Tennessee?
Tennessee law limits any individual to an ownership interest in no more than two retail package store locations. This restriction is designed to prevent chain consolidation and support locally owned wine and spirits retailers across the state.