This blog was last updated on March 11, 2025
In the fall of 2024, New York became the latest state to open its doors to direct-to-consumer (DtC) spirits shipping, marking a significant milestone for the industry. As one of the most populous states with a thriving market for craft and high-end spirits, the shift was expected to create substantial new opportunities for distilleries nationwide. Now, several months later, where does the market stand? And what does this mean for the future of DtC spirits shipping across the U.S.?
The Early Numbers: DtC Spirits Shipping in New York
According to the New York State Liquor Authority (SLA), only a handful out-of-state distilleries have obtained Direct Liquor Shipper licenses since they became available. Meanwhile, all New York-based craft distilleries were automatically granted shipping privileges when the law went into effect.
New York is currently witnessing the establishment and stabilization of its internal DtC market, with in-state distilleries naturally leading the way in adoption. At the same time, out-of-state participation remains limited, as many distilleries are still evaluating the opportunity, navigating regulatory requirements and building awareness. As the market matures and more businesses recognize the potential, participation—both from in-state and out-of-state distilleries—is likely to grow.
Alex Koral, Regulatory General Counsel at Sovos ShipCompliant, emphasizes that it’s still early days:
“It takes time for a DtC program to gain traction. The licensing process is just beginning, and New York employs a reciprocity rule that inherently limits the distilleries that are eligible to ship to the state, keeping license numbers artificially low as long as it remains in effect. We’ll have a better sense of the law’s impact as more businesses and consumers engage with the new shipping options.”
Growing Consumer Demand for DtC Spirits
One of the biggest takeaways from the 2024 Direct-to-Consumer Spirits Shipping Report is that consumer demand for DtC spirits shipping is not slowing down. In fact, it’s rising. Sixty-five percent of Americans 21+ want to see laws change to expand DtC spirits shipping, while the desire for purchasing spirits through the channel has risen to 85%.
Craft distilleries rely on DtC shipping to reach consumers who cannot find their products in local stores. Meanwhile, consumers expect the convenience of ordering their favorite spirits online, just as they do with wine and, of course, countless household products. However, unlike wine—which can be shipped to nearly every U.S. state—spirits face far more restrictions, with interstate spirit permitted in only nine locales as well as D.C.
What’s Next for DtC Spirits Shipping?
Historically, regulatory changes in major states like New York and California have often set the stage for broader industry adoption. When a state with a large population and significant market influence embraces a new policy—whether it’s DtC wine shipping, cannabis legalization or craft beer self-distribution—other states take notice. The same could hold true for spirits.
New York’s decision to allow DtC spirits shipping was a landmark move, but its ultimate impact will depend on how effectively the market develops. The success of this program might provide the momentum needed to push DtC spirits shipping forward on a national scale. However, several key questions remain.
Which states will follow New York’s lead?
While it’s too early to predict exactly which states will introduce DtC spirits shipping bills next, large population centers and states with a strong craft spirits presence are natural candidates for future expansion. Two states that have already shown signs of movement are California and Colorado—each in a different stage of exploring DtC spirits reform.
- California currently operates under a temporary, in-state-only direct shipping law, but this stopgap measure isn’t a long-term solution. Given California’s size and economic influence, how it addresses spirits shipping could set an important precedent for other states.
- Colorado has also expressed early interest in expanding spirits shipping. The state’s Liquor Enforcement Division (LED) has conducted outreach and studies within the local industry, gauging whether there is sufficient support to push for legislative action.
Will lawmakers and regulators support expansion?
Resistance to DtC spirits shipping often comes from wholesaler and retail associations concerned about bypassing the traditional three-tier system. However, two decades of well-regulated DtC wine shipping provide a clear precedent—and the data overwhelmingly supports expansion.
States with legal DtC wine shipping have successfully collected significant tax revenues, maintained effective regulatory oversight, and even seen declines in underage alcohol consumption. Meanwhile, the wholesale and retail tiers remain strong, with distributors continuing to thrive and retailers adapting to a changing marketplace. The evidence is clear: DtC shipping can coexist with the traditional system without causing harm to existing businesses.
How long will it take for momentum to build?
Legislative change is often slow and even states that are receptive to reform will take years to develop and implement effective policies. Turning to the wine industry as a precedent, it has taken over two decades to get DtC wine shipping to its current state, yet it still hasn’t been legalized in every state.
In the meantime, distilleries looking to expand their footprint should prepare for a dynamic landscape. To gain a deeper understanding of the evolving DtC spirits landscape, download the 2024 Direct-to-Consumer Spirits Shipping Report today.
