Kentucky Removes Barriers to Direct Shipping

Alex Koral
March 16, 2021

On March 12, Kentucky Governor Andy Beshear signed HB 415 into effect, providing some very welcome updates to the state’s direct-to-consumer (DtC) alcohol shipping laws.

The biggest reform provided by the recently signed bill is the removal of a provision that previously prohibited DtC alcohol shippers from using third-party fulfillment houses to help with their shipping logistics needs. This change is a major shift for the state’s DtC alcohol shipping laws and should provide immediate relief to the many licensed DtC alcohol shippers, large and small, who rely on fulfillment houses to manage the complexities of readying packages with alcohol and bringing those packages to the designated carriers.

This change is also welcome in light of the ongoing debate about the value of fulfillment houses in the DtC alcohol shipping market and a bill proposed in Tennessee to prohibit their use.

The Kentucky Department of Alcoholic Beverage Control will be updating their regulations and application process to reflect the change in law, which removes the need for an applicant to designate addresses they own or lease as the locations from which shipments could be made.

The Kentucky bill also removed a requirement for licensed DtC shippers to register their brand/labels with the state before shipping those products.

In all, HB 415 revises and rewrites large portions of Kentucky’s DtC alcohol shipping laws, which were just enacted last year. The amendments and clarifications are beneficial to beverage alcohol suppliers and DtC shippers, and of course the Kentucky consumers they serve.

HB 415 became effective with the Governor’s signature.

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Alex Koral

Alex Koral is Senior Regulatory Counsel for Sovos ShipCompliant in the company’s Boulder, Colorado office. He actively researches beverage alcohol regulations and market developments to inform development of Sovos’ ShipCompliant product and help educate the industry on compliance issues. Alex has been in the beverage alcohol arena since 2015, after receiving his J.D. from the University of Colorado Law School.
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