All alcohol is divided into three parts—beer, wine and spirits. At least, those are the primary product types of beverage alcohol recognized by popular perception and defined by state and federal statutes. Determining what is in a bottle (or can or keg or firkin) is vital for anyone who manufactures, distributes or sells the product, […]
Managing beverage alcohol compliance and tax in a rapidly evolving regulatory environment takes expertise and a relentless attention to detail. Odds are, you didn’t get into the industry to spend countless hours each week pouring over mandate changes, tax laws and regulatory updates. Partnering with a compliance software company is an easy way to mitigate […]
In another blow to proponents of expanded direct-to-consumer (DtC) shipping of wine, a court in the Southern District of Ohio earlier this week ruled in favor of the state, rejecting plaintiff’s claims that Ohio’s DtC shipping laws for retailers were discriminatory and harmful to consumers. What happened in this case? The case, Block v. Capera […]
Among the numerous rules and regulations that suppliers of beverage alcohol have to deal with, those governing the advertising and marketing of their products may not always be top of mind. However, both federal and various state regulators have signaled their intent to ramp up policing of this area of alcohol regulation, particularly when it […]
Direct-to-consumer (DtC) alcohol shipping can at times seem convoluted and increasingly complicated. States continue to evolve their DtC shipping requirements, which can understandably create some confusion over what is and is not allowed. However, working with the right partner can help to clear up some of that confusion. Here are some of the top misconceptions […]
The summer months can be ideal for enjoying a hard cider, but it’s always a good time for cider producers to brush up on three-tier compliance rules. Before expanding into new markets, you must be familiar with the specific rules of each state. In this blog, we will cover the major regulatory and tax rules […]
A lot has changed in the direct-to-consumer (DtC) wine shipping channel since the January release of our Direct-to-Consumer Wine Shipping Report—changes in volume and value that have the market resembling pre-pandemic patterns. Note: The proprietary data featured in this mid-year report is compiled from an algorithm measuring total DtC shipments based on millions of anonymous […]
The legal landscape for direct-to-consumer (DtC) shipping of alcohol is a hodgepodge of rules and regulations that vary from state to state. This follows the broad principle set out in the 21st Amendment that each state shall govern the “transportation or importation . . . therein of intoxicating liquors.” As such, New Hampshire can permit the […]
The Alcoholic Beverages Control Commission in Massachusetts recently announced that they will be conducting Minimum Purchase Age Compliance Checks in retail stores and aimed at direct-to-consumer (DtC) wine shippers through December 31, 2022. With this information in mind, now is a great time to refresh your age verification knowledge and company policy. What are age […]
Smaller product categories in wine and beer/malt lead the way Summer has officially arrived, and with rising temperatures also come rising beverage alcohol product registrations. While the industry is not seeing the same spikes as during the height of the COVID-19 pandemic, there are still signs of positive growth. There were increases in Product Registration […]
The three-tier system is the most prevalent way that spirits are sold in the United States. We have compiled a comprehensive state-by-state guide that outlines the complex requirements distillers must keep in mind when expanding into a new state. In this blog, we will break down the main regulatory and tax rules that distillers distributing […]
On July 13, the Uniform Law Commission (ULC) voted to approve a model act that could impose significant burdens on businesses engaged in direct-to-consumer (DtC) shipping of beverage alcohol. (Read on to find out just who the ULC is, anyway.) While the model bill has not garnered a lot of attention yet, what attention it […]
More consumers than ever are looking to avail themselves of the market for direct-to-consumer (DtC) shipped beverage alcohol. What was once more a niche market for prized domestically produced wines has gone on to pique consumer interest in accessing the broad range of alcoholic products made within the United States that are not also widely […]
On July 1, 2022, Vermont Act 177 takes effect, creating new ways to sell Ready-to-Drink (RTD) spirits in the state, including permission for distillers to ship these products direct-to-consumer (DtC). As defined in the act, “RTD Spirits Beverages” are alcoholic beverages obtained from distillation that contain no more than 12% ABV and are packaged in containers […]
Within the three-tier system that governs how alcohol is sold and distributed within the United States, importers are considered a type of supplier. As such, they are largely regulated like domestic producers, meaning they must distribute through wholesalers, who will sell to the retailers, where customers will finally be able to purchase the importer’s products. […]
The direct-to-consumer (DtC) shipping model is growing in popularity, as the DtC wine channel recently broke the $4 billion per year mark, and 92% of craft beer drinkers are looking to order their favorite brews to the front door. It’s no surprise that producers, retailers and other potential shippers are itching to meet the growing […]
Managing sales tax obligations can be complex in the direct-to-consumer (DtC) alcohol beverage shipping space. Luckily, Sovos ShipCompliant’s Alex Koral, regulatory general counsel, broke down key considerations in the recent Understanding Sales Tax for the DtC Shipper webinar. Here are highlights from the presentation to help you better understand the many nuances of this tricky […]
Beverage alcohol suppliers and producers selling in the United States typically must obtain Certificate of Label Approvals (COLAs) from the Alcohol and Tobacco Tax and Trade Bureau (TTB) before product distribution. This ensures that suppliers and producers are compliant with federal regulations regarding the design of their alcohol labels. (Additionally, most states have their own […]