Effective January 2026, California is fully opening its doors to direct-to-consumer (DtC) shipping of distilled spirits. Until recently, only distillers located within California were permitted to ship spirits directly to residents. This policy originated after the widespread shutdowns in 2020, which prompted temporary measures to support local businesses. The law allowing in-state direct-to-consumer shipping was extended annually until a legal challenge, referencing the Granholm ruling, questioning its fairness.
In November of 2025, we hosted a webinar featuring Michael Walker on behalf of the American Craft Spirits Association (ACSA) , featuring a deep dive on everything that distillers needed to know before shipping to California.
Why California DtC Shipping Matters Now
The state’s one-year pilot program, effective January 1, 2026, opens the door for both in-state and out-of-state craft distillers to ship directly to consumers, provided they meet strict compliance requirements. This shift not only expands market access but also signals potential trends for other states to follow.
Regulatory Changes to Know
With the passing of AB 1246, California’s DtC spirits shipping laws have undergone significant updates. Here’s what producers need to know.
Licensing & Permits
- Eligibility: Out-of-state distillers must meet California’s definition of a craft distillery, including production caps (currently 150,000 gallons per year).
- Licensing: Shippers will need to obtain the newly announced Type 94 This includes in-state distilleries.
Labeling & Reporting Rules
- Proposition 65 Warning: All shipments into California must include a Proposition 65 alcohol warning, either on the packaging or as an insert in your shipment.
- Bottle Deposit Law: Spirits shippers must include a deposit label on bottles and collect and remit a bottle deposit ($0.10 per containers for glass bottles greater than 24 oz.) to the California Environmental Agency.
- Reporting: As part of their Bottle Bill obligations, DtC shippers must register as both manufacturers and retailers, each with separate tax reporting and remittance requirements.
Compliance Best Practices
Navigating alcohol shipping compliance in California, like in all states, requires attention to detail.
- Know State-Specific Rules: Always follow the laws of the destination state; this includes their specific rules on licenses, taxes and volume limits. If a state does not permit DtC spirits shipping, do not ship there.
- Volume Limits: California enforces a strict limit of 2.25 liters per person per day for DtC shipments. Aggregating shipments is not allowed; each transaction must match the shipment.
- ID Checks: Do not allow anyone under the age of 21 to order your products and ensure that age verifications are happening at the time of delivery.
- Tax Management: Collect and remit excise taxes as if the sale occurred in California. Further updates are expected for sales tax.
The pilot program is currently scheduled to end on December 31, 2026. While it’s uncertain whether lawmakers will extend or make the program permanent, history suggests there’s a precedent for renewal. Our annual Direct-to-Consumer Spirits Shipping Report, produced in collaboration with the ACSA, consistently demonstrates that consumers want increased access to spirits. The repeated extensions of California’s in-state shipping laws further illustrate that support from both consumers and lawmakers can drive meaningful change.
FAQ
Can spirits be shipped DtC to consumers in California?
Yes, starting January 1, 2026, both in-state and out-of-state craft distillers can ship spirits directly to California consumers, provided they obtain the required license and comply with all regulations.
What licenses are required to ship spirits DtC in California?
To DtC ship spirits into and within California, you will need a Type 94 license.
Are there volume limits for DtC spirits shipments in California?
Yes, there is a 2.25 liter per person per day volume limit for DtC spirits shipments in California.
What reporting is required for California DtC spirits shipping?
Shippers must register as both manufacturers and retailers, collect and remit bottle deposits, and file regular tax and compliance reports with California agencies.
Does California allow DtC shipping from out-of-state distilleries?
Yes, as long as the distillery meets California’s definition of craft distillery and secures the appropriate licenses, out-of-state distilleries can DtC ship to California residents effective January 1, 2026.
What happens if a shipper fails to comply?
Non-compliance can result in fines, loss of licenses, and enforcement actions from state and federal agencies. Compliance failures may also impact other production licenses and future business opportunities.