Sovos’ annual Direct-to-Consumer Spirits Shipping Report underscores an immediate need to expand shipping laws to meet demand and boost spirit sales
ATLANTA, OCTOBER 23, 2024 – A new report released today by global tax compliance technology leader Sovos highlights continued high demand among craft spirits enthusiasts who wish to legally purchase their preferred beverages through direct-to-consumer (DtC) shipping. Commissioned by Sovos ShipCompliant and the American Craft Spirits Association, and conducted by The Harris Poll, the 2024 Direct-to-Consumer Spirits Shipping Report examines the craft spirits purchasing behaviors and intent of Americans ages 21+ who are regular craft spirt drinkers1. This year’s report found that the desire for buying craft spirits legally via DtC shipping is held by an overwhelming majority of regular craft spirit drinkers (85%), an increase from 2022 (80%)2.
“The data confirms that American adults in general and regular craft spirit drinkers in particular remain dissatisfied with current craft spirits shipping laws. It’s time for shipping laws to keep pace with the demand and evolving market,” said Alex Koral, regulatory general counsel, Sovos ShipCompliant. “Increased access to DtC shipping has the potential to benefit consumers, distillers and industry players across the board, particularly at a time when the spirits industry and craft distillers above all are struggling to succeed. There is plenty of precedent with a well-regulated DtC wine market. Spirits producers and consumers simply want to see that same access and opportunity afforded to them.”
Key trends and highlights from the report include:
- Current Spirit Shipping Laws Not Adequate: Only nine states, plus Washington, D.C., permit interstate DtC spirits shipping. Yet nearly two thirds of Americans (65%) and the majority of regular craft spirits drinkers (81%) want to see changes in current U.S. spirits shipping laws to allow for DtC spirits to be shipped in more states than it is currently legal in.
- Boosting Sales at Retail for DtC Shipped Brands: Nearly all regular craft spirits drinkers who are likely to purchase craft spirits via DtC (92%) say if they purchased and enjoyed a brand of craft spirits via DtC shipping, they would be likely to look for that brand at a retail store. As demonstrated over nearly two decades of legal DtC wine shipping in the U.S., brands that build success via DtC often have strong entry in the wholesale distribution and retail environment. The same would appear to hold true for DtC spirits.
- Purchase Intent and Reviving Revenue: The current DtC shipping restrictions are causing distilleries to leave significant revenue on the table for out-of-state enthusiasts. More than three quarters of regular craft spirits drinkers (77%) have tried a craft spirit while traveling that they wish they could purchase, but is not available near their home, up from 71% in 2022. More than four in five regular craft spirits drinkers (82%) say they would be more likely to try new craft spirit brands if they were able to purchase the spirits via DtC shipping to their home — an increase from 74% two years ago.
“When it comes to craft spirits, there are more choices than ever before—but very few ways for consumers to access them due to antiquated and limited shipping laws,” said Margie A.S. Lehrman, CEO of the American Craft Spirits Association. “As consumers increasingly seek more convenient ways to make their purchases, states will need to give spirits producers the tools they need to meet and expand their customer base. It is time to modify and modernize regulations to align with consumer demands for choice and convenience, and create open and fair competition for this innovative industry.”
To download the full 2024 Direct-to-Consumer Spirits Shipping Report, visit DtCSpiritsReport.com. Additionally, visit the Sovos ShipCompliant website for the most up-to-date information on the rules and regulations governing DtC spirits shipping.
Footnotes
1Defined as those who consume craft spirits once a month or more often.
2 – Sovos ShipCompliant 2023 Direct-to-Consumer Spirits Shipping Report
Consumer Survey Methodology
This survey was conducted online within the United States by The Harris Poll on behalf of Sovos ShipCompliant from August 15-19, 2024 among 2,032 U.S. adults ages 21+, among whom 641 drink craft spirits/liquor at least once per month. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.6 percentage points using a 95% confidence level for adults ages 21+, and within +/- 4.6 percentage points using a 95% confidence level for those who drink craft spirits/liquor at least once per month. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact helloship@sovos.com.
About Sovos
Sovos provides businesses with the confidence needed to navigate an increasingly regulated world. Offering a modern, IT driven response to compliance, Sovos’ solutions are scalable, reliable and secure and provide a great user experience. Sovos has more than 100,000 customers, including half the Fortune 500, as well as businesses of every size operating in more than 70 countries. The company’s cloud-based solutions integrate with a wide variety of business applications and government compliance processes. Sovos has employees throughout the Americas and Europe and is owned by Hg and TA Associates. For more information visit http://sovos.com and follow us on LinkedIn and Twitter.
Sovos ShipCompliant has been the leader in automated alcohol beverage compliance tools for more than 15 years, providing a full suite of cloud-based solutions to wineries, breweries, distilleries, importers, distributors and retailers to ensure they meet all federal and state regulations for direct-to-consumer and three-tier distribution. ShipCompliant’s solutions reduce risk, lessen the burden of compliance, accelerate bringing products to market and enable revenue growth. With 60+ partner integrations, Sovos ShipCompliant leads a robust ecosystem of technology partnerships, enabling powerful complementary solutions. For more information, visit https://sovos.com/shipcompliant and follow us on LinkedIn and Twitter.
About American Craft Spirits Association
The American Craft Spirits Association is the only registered national nonprofit trade group representing the U.S. craft spirits industry. Members vote for the 15 democratically elected representatives who make up the Board of Directors, and this Board collectively works to govern the ACSA in a transparent, responsive manner and in accordance with ACSA bylaws. ACSA’s mission is to elevate and advocate for the community of craft spirits producers. For more information, visit AmericanCraftSpirits.org.
