Blog

Why Can’t I Get Liquor Shipped to My Home?

Have you ever wanted to order your favorite out-of-state liquor and get it shipped right to your front steps? The COVID-19 pandemic pushed consumers to rethink how they obtain the necessities and conveniences, but ordering distiller spirits for home delivery is not that easy, with only eight locales nationally permitting the direct-to-consumer (DtC) shipping of […]

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Three-Tier System Essentials: Tax Determination and Reporting

Tax compliance can easily become an overlooked area as alcohol producers work on numerous aspects of their three-tier distribution compliance, including state license forms and brand registration requirements. For alcohol producers distributing in the three-tier system, excise tax determination and reporting is especially critical. Businesses must ensure they stay compliant as they scale into new […]

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Understanding Delivery v. DtC Shipping in Beverage Alcohol

What’s the difference and why does it matter? Consumers may not care about the legal technicalities of how their favorite alcoholic beverages arrive at their front doors, but federal and state regulators absolutely do. Here’s a quick guide to what producers and retailers must know about direct-to-consumer (DtC) shipping versus local delivery of beverage alcohol. […]

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What’s in Store for the DtC Wine Shipping Market in 2022

In 2022, wine producers and wine consumers can enjoy unparalleled access to each other through the market for direct-to-consumer (DtC) shipping of wine. The current map for DtC wine shipping of 47 states and the District of Columbia, is thanks in no small part to vigorous lobbying and advocacy efforts over the past few decades, […]

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Three-Tier System Essentials: Product Registrations

For suppliers of beverage alcohol, one of the most critical steps in getting to market is ensuring that their product labels comply with all applicable federal and state laws. An alcohol label contains critical information identifying the contents and producers, and as such it is highly regulated with rules at both the federal and state […]

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Legislation Stalls but the Time is Right for DtC Spirits Shipping

Direct-to-consumer (DtC) shipping is increasingly becoming a hot topic in the craft beer and spirits worlds, with both producers and consumers pushing for greater access. However, while 47 states and the District of Columbia allow wine to be shipped DtC, just six states and D.C. do so for spirits. Several states have bills that could […]

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Spirits New Product Registrations Jump 108% in Q1 2022

Brandy registrations see impressive 322% spike from Q4 2021  As spring and the warmer months inch closer, beverage alcohol brand registration patterns are also continuing to creep higher. The industry is perhaps gaining a better understanding of how to move forward in a marketplace working through a pandemic. There were increases in Product Registration Online […]

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The Three-Tier System: From Prohibition to Today

Sovos ShipCompliant’s Alex Koral, regulatory general counsel, invited Tom Wark, executive director of the National Association of Wine Retailers and author of the Fermentation Newsletter, for a conversation about the three-tier system’s role in the modern-day beverage alcohol regulatory landscape. Tom shares his take on how Prohibition may have initially shaped the approach to regulating […]

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Three-Tier System Essentials: Self-Distribution Permissions

The three-tier system, under which beverage alcohol is predominately sold in the United States, establishes a clear distinction between the different “tiers” of the market. As it is designed to work, alcohol suppliers sell solely to wholesalers, who in turn sell solely to retailers, who then are the entities that consumers purchase alcohol from. In […]

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The Latest Updates on DtC Beer Shipping Regulations

We’ve previously discussed the details of direct-to-consumer (DtC) beer shipping, and what shippers must keep in mind to stay compliant. It’s also important to stay current on updates to DtC beer shipping regulations. That way shippers can make any necessary changes to remain compliant should more (or fewer) states allow beer to be shipped directly […]

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Top Takeaways from the 2022 Sovos ShipCompliant Beverage Alcohol Summit

The 2022 Sovos ShipCompliant Beverage Alcohol Summit virtual event included in-depth data analysis, discussions on the latest regulatory updates and insightful thought leadership. Here are some Summit highlights and quick facts from our sessions. Big picture industry updates Alex Koral, regulatory general counsel, Sovos ShipCompliant, shared some observations about the role of regulations in the […]

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Three-Tier System Essentials: Control States

We’ve previously discussed the importance for producers to get licensed for the three-tier system when beginning to sell and distribute their alcoholic products. However, it’s also critical that when a supplier distributes into a new state, they first recognize if they will be selling into a “control system.” In the control state model, state agencies […]

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5 Highlights From the Second Annual DtC Beer Shipping Report

This March, Sovos ShipCompliant released the second annual Direct-to-Consumer (DtC) Beer Shipping Report in partnership with the Brewers Association. The report features exclusive insights and data on the state of the channel, an economist’s review of the marketplace opportunity and key findings from a consumer preferences survey. Fast facts from the 2022 DtC Beer Shipping […]

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What’s Up with DtC Audits and Enforcement?

Regulatory scrutiny is a constant in the beverage alcohol industry, and direct-to-consumer (DtC) shipping is no exception to that. However, the DtC market does bring some unique regulatory concerns. The last several years have seen increased efforts by regulators to get a handle on the growing market, which has led to more audits and enforcement […]

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DtC Alcohol Shippers Cannot Contract Their Way Out of Compliance

Suppliers looking to get into the valuable and growing market of direct-to-consumer (DtC) alcohol shipping often need support from third parties. From setting up sales to managing shipping logistics to handling complicated tax filings, DtC alcohol shipping is often too much for any one business to deal with entirely on their own. Within the ecosystem […]

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4 Fast Facts from the 2022 Direct-to-Consumer Wine Shipping Report

Among the many facts and analysis shared during our recent webinar on the 2022 Direct-to-Consumer Wine Shipping Report, a few really stood out. We gathered some highlights and key stats from the session. The report is an annual collaboration between Sovos ShipCompliant and Wines Vines Analytics, providing detailed insights into the DtC wine channel. The […]

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Retention Pays Off Big with Increase in DtC Wine Shipping

By Andrew Adams, Editor, Wine Analytics Report This year’s annual Direct-to-Consumer Wine Shipping Report featured an additional set of data to help put the past two years of unprecedented winery shipment growth in context. Since the surge of shipment volume in March and April 2020, there has been sustained interest in trying to understand just […]

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Three-Tier System Essentials: Getting Licensed

The three-tier system is the prevailing way that alcohol is distributed and sold in the United States, based on a clear cut distinction between different sectors (or “tiers”) of the beverage alcohol market. In the three-tier system, suppliers, such as producers and importers, are required to sell to wholesalers and distributors, who in turn sell […]

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