Sovos ShipCompliant addresses compliance concerns around direct-to-consumer and three-tier distribution via live presentation and ebook
(ATLANTA) July 18, 2022 – Widely varying state-by-state beverage alcohol laws create a daunting challenge for craft producers who want to bring new products to market and ship direct-to-consumer (DtC) with confidence that they are complying with all regulations. In keeping with their mission to reduce risk and lessen the burden of beverage alcohol compliance, Sovos ShipCompliant is providing education and resources for spirits producers at the American Craft Spirits Association (ACSA) 9th Annual Distillers’ Convention.
DtC shipping of alcohol has become an emerging focus for the industry, as producers feel increasing pressure from consumers for online availability, and 90% of recent online shoppers say they anticipate making more online purchases in the near future. In the Direct-to-Consumer Spirits Shipping: Key Compliance Considerations session at the ACSA Convention, Alex Koral, regulatory general counsel, Sovos ShipCompliant, will discuss the varying rules and regulations in each state that allows for interstate DtC spirits shipping. Not following beverage alcohol regulations can have a variety of consequences—most commonly monetary penalties, but in severe situations even a loss of license.
“This is a great session for both distillers who are looking to start shipping DtC across state lines, as well as those with existing shipping programs who want to be sure they aren’t making potentially costly compliance or reporting mistakes,” said Koral. “Consumers and suppliers alike are always looking for better, easier ways to interact in the purchasing process. To ensure the sustainability of that process from start to finish, distilleries must first ensure they understand and are meeting all applicable compliance and tax concerns.”
While DtC and three-tier distribution are sometimes seen as competing channels, these methods can work together to strengthen brand awareness and customer demand and loyalty. Most producers distribute different products through each channel, creating a reason and opportunity for customers to purchase through DtC, as well as in stores, restaurants and bars.
As distillers expand to reach more customers, three-tier compliance requires continued adherence to detail. Regulations and compliance requirements often increase with sales numbers, and everything from the licensing process to renewal deadlines can vary widely from state to state. To support a successful three-tier distribution strategy, Sovos ShipCompliant has created a free-to-download Three-Tier System Basics ebook that highlights the essentials of everything from getting started to remaining compliant for continued success in the channel.
To learn more about the basics of DtC spirits shipping, join Sovos ShipCompliant at its Direct-to-Consumer Spirits Shipping: Key Compliance Considerations session on Sunday, July 24th at the ACSA 9th Annual Distillers’ Convention. To learn how to implement a successful three-tier distribution strategy, download the Three-Tier System Basics ebook.
About Sovos ShipCompliant
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://www.sovos.com/shipcompliant/ and follow us on LinkedIn and Twitter.
ARPR, on behalf of Sovos ShipCompliant
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