A common carrier acting as an insurer for losses to persons shipping alcoholic beverages or an insurance company, pursuant to authority of Section 23104 of the Alcoholic Beverage Control Act, may take possession of damaged alcoholic beverages insured by it, after permission has been granted by the department. Such alcoholic beverages may be sold only to qualified licensees. Alcoholic beverages so sold because of damage by fire, wreck, or other similar circumstances shall be labeled to identify them as distressed merchandise.

The label for this purpose shall be white paper not less than two inches long and one inch wide. The following statement shall be printed thereon:

“The alcoholic beverage contained herein is distressed merchandise salvaged from fire, flood, wreck, or similar catastrophe. This label is not affixed by the manufacturer.” The letters on the label shall be no smaller than pica type and shall be bold-faced. The label may be larger than the minimum herein, if desired. Such label shall be affixed over the regular label of each bottle or other package by the insurance company or common carrier before it is delivered to the purchasing licensee.

No licensee shall purchase or resell such distressed merchandise without such label being securely affixed over the regular label of each bottle or other package.