This blog was last updated on November 5, 2024
While wine lovers have enjoyed the convenience of direct-to-consumer (DtC) shipping for nearly two decades, the craft spirits market is still not afforded the same access. Outdated and restrictive spirits shipping laws have kept the spirits industry from fully leveraging the benefits of DtC shipping, leaving both consumers and distillers unable to enjoy its full potential.
We partnered with the American Craft Spirits Association to understand both the widespread demand for regulatory reform, as well as the far-reaching impact that expanded direct shipping privileges would have across the industry. While it was no surprise that craft spirits enthusiasts and distilleries are calling for change, the 2024 Direct-to-Consumer Spirits Shipping Report revealed two new insights that underscore the broad-based demand for reform and its potential benefits.
The Case for Expanding DtC Shipping to Spirits
- The desire for expanded DtC shipping isn’t just a niche issue for craft spirits fans. It’s a consumer-driven movement that’s gained more momentum as buyers seek more choice and convenience in how they purchase products.
- Spirits DtC shipping shouldn’t be seen as a threat to traditional retail. Instead, it complements the in-store experience. Consumers who discover brands through direct channels are more likely to seek those same products at retail locations, creating new opportunities for retailers to benefit from the DtC model.
Let’s explore these findings in more detail to better understand how shipping reform could transform the future of the spirits industry.
DtC Spirits Shipping is a Consumer-Driven Movement
Americans nationwide agree that it’s time for change. A significant 65% of the adults surveyed believe that laws should be changed to allow spirits to be shipped directly to consumers in more states. This isn’t just a small group of craft spirits fans; it’s a broad-based demand for more flexibility and consumer choice.
Among regular craft spirits drinkers, this sentiment is even stronger, with 81% in favor of legislative changes to enable more widespread DtC shipping. Many of them have traveled, discovered new spirits, and been frustrated by their inability to purchase these products once they return home.
The demand for consumer shipping reflects changing consumer expectations in a world where convenience and choice are increasingly important. Consumers want more control over their purchasing decisions, and they’re frustrated by the regulatory barriers that prevent them from accessing products they want.
Direct Shipping is a Win-Win-Win for Craft Spirits Sales
The report found that 92% of regular craft spirits buyers who purchase through DtC channels say they actively seek out those same brands at retail locations. Of those, 45% are very likely to do so. This means that direct spirits shipping not only offers consumers a convenient way to access their favorite product, but also acts as a driver of retail sales, creating a win-win-win scenario for consumers, distilleries and retailers.
- Consumers: More Variety and Convenience
Perhaps the most obvious benefit for consumers is the expanded access DtC offers to a wider range of products that often aren’t available in their local outlets. This is particularly appealing for those who have had personal experiences discovering unique spirits while traveling. In fact, 77% of regular craft spirits drinkers have tried a spirit they loved while away from home but couldn’t purchase locally—up from 71% in 2022. - Distilleries: Broader Market Reach
Many small to mid-sized distilleries lack the resources or connections to secure widespread distribution in traditional retail environments. However, direct shipping allows them to build a national customer base and tap into markets they would otherwise be unable to access.
According to the 2024 report, 82% of regular craft spirits drinkers say they would be more likely to try and purchase spirits from out-of-state distilleries if they had the option to do so. On average, these consumers would spend $125 each month, totaling around $1,500 annually, if they had access to DtC shipping. This represents a significant opportunity for distilleries to grow their brand presence and increase sales without the constraints of traditional distribution networks. - Retailers: Tapping into an Engaged Customer Base
Contrary to concerns that direct shipping might hurt traditional retail, the data shows that it can actually drive retail sales. In fact, nearly half (45%) of regular craft spirits drinkers are very likely to look for the brands they purchased through DtC channels at retail locations.
As consumers get introduced to new and unique brands, it creates demand for those brands in physical stores. This means that retailers who carry these brands stand to benefit from an engaged and loyal customer base. So, while DtC shipping serves as a way for consumers to discover new products, traditional retail remains essential for maintaining those ongoing, in-person purchases. Retailers can capitalize on this trend by stocking brands that have proven their popularity through DtC channels, attracting loyal customers and boosting sales.
The Path Forward: Why the time for reform is now
In many ways, this movement mirrors what happened with the wine industry two decades ago. The DtC wine shipping market is proof that allowing consumers to receive shipments directly from producers benefits all parties involved—producers gain broader market access, consumers enjoy greater choice and convenience, and the states benefit from increased tax revenue.
With over 15 years of successful wine shipping as a proven model, there is no question that the spirits industry can follow the same path—safely, compliantly, and profitably. The time to expand DtC spirits shipping is now, opening the door to a more accessible and profitable future for everyone involved.
Download the 2024 Direct-to-Consumer Spirits Shipping Report for more key insights on consumer demand, market opportunities and the critical need for legislative reform.
