This blog was last updated on July 20, 2023
Some promising direct-to-consumer (DtC) happenings have occurred in both Alabama and Delaware in the last few weeks. The DtC application process in Alabama has been made easier, with less information required. And there’s a clear sign that Delaware might open up to allow DtC wine shipping. We share the details below.
DtC license application developments in Alabama
The Alabama Alcoholic Beverage Control (ABC) Board published a new direct wine shipper and Fulfillment House pre-application and required document checklist. The new forms require less information than before, simplifying the application process.
Updates include the removal of the requirement to provide both bond and proof of liquor liability insurance. Additionally, the amount of personal information given to the state now depends on the equity in ownership of each individual. Information like residences and driver’s licenses will only be required from those with 10% or more ownership interest in the applying entity. Anyone with less than 10% stake in the company simply must provide a notarized affidavit. Alabama’s ABC Board also removed the requirement of out-of-state entities needing to register with the Secretary of State.
These updates make the application process easier than ever, helping strengthen the DtC channel in Alabama.
What’s happening in Delaware?
Delaware is one of only three states where all forms of DtC wine shipping is prohibited. But for how much longer will this apply? We’ve been tracking bills aimed at opening up the state, and while nothing was decided before the legislature’s adjournment on June 30, there’s still hope for DtC shipping next year. HB 262 was pre-filed this month for consideration in 2024. Things are looking up, as the bill already has eight sponsors.
While we don’t have a crystal ball to predict the future of DtC shipping, there are clear signs that good things are coming to the DtC market. Our compliance experts will be monitoring these situations and provide updates as they occur, so check back often.
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