On August 15, Delaware Governor Matt Meyer signed HB 187, a bill that establishes direct-to-consumer (DtC) wine shipping privileges in the state. While the addition of another state to the DtC wine shipping map is usually a cause for celebration at Sovos ShipCompliant, there are many reasons to take exception to this bill. Examining the bill, it seems to be more of a poison pill to deflect actual efforts to enable DtC shipping in the state than the positive development for Delaware consumers that it is touted as.
What is House Bill 187?
On its face, HB 187 largely resembles the model DtC wine shipping bill that has now been adopted by every state besides Utah. However, there are several additional provisions and numerous devilish details that make the law largely problematic.
Under HB 187, DtC wine shippers servicing Delaware consumers will have to:
- Apply for and receive a Wine Direct Shipper License, issued by the Delaware Office of the Alcoholic Beverage Control Commissioner.
- This license is only available to Delaware farm wineries as defined by state law or equivalent wineries located in other states. Per 512A of Delaware’s Alcoholic Liquors statutes, “farm wineries” are establishments where both the basic ingredients for wine are produced and where they are fermented.
- The cost of a Wine Direct Shipper License will be $400 to ship up to 200 cases per year, or $3,600 to ship over 200 cases per year.
- The license must be renewed every two years.
- Not ship any wine if they are currently represented in Delaware by a licensed importer/wholesaler. This includes any and all subsidiaries of larger wine manufacturers that are listed in a Delaware wholesaler’s price postings to the state. This would prohibit wineries from engaging in DtC shipping if they are also selling at wholesale and will include wineries that are not actually selling at wholesale but are merely affiliated with a winery that is.
- Not ship more than three (3) cases of wine per household per year.
- Not ship more than 1,800 cases of wine total to Delaware per year.
- Use a licensed common carrier that will check IDs at the point of delivery and fulfill their other regulatory obligations.
- Conspicuously label all packages shipped to the state with “CONTAINS ALCHOL: SIGNATURE OF INDIVIDUAL AGE 21 OR OLDER REQUIRED FOR DELIVERY”
- File a regular shipping report to the state Commissioner and the Division of Alcohol and Tobacco Enforcement, detailing their recent activity including name and address of individuals receiving wine and tracking numbers for shipments.
- Remit to the state all excise taxes due on their shipments as if the sale occurred in Delaware.
- Notably, Delaware does not have a sales tax, so that is not a concern for DtC shippers.
- Accept the jurisdiction of the Commissioner and abide by any requests for further information or audits issued by the state.
The HB 187 Delaware DtC bill largely resembles the model DtC wine shipping law adopted by every state except Utah. However, it introduces restrictive provisions that make Delaware direct-to-consumer wine regulations problematic.
How much does a license cost under HB 187?
The licensing fees in the Delaware wine shipping law are among the highest in the country:
| Annual Volume Shipped | Cost | Correct amount |
| Up to 200 cases | $400 | Every 2 years |
| Over 200 cases | $3,600 | Every 2 years |
Even the higher volume license only allows shipping up to 1,800 cases a year, making it financially unviable for most wineries.
Regulatory Provisions and Limitations
Customer Volume Limits
DtC shippers will be limited to shipping no more than three (3) cases of wine per household per year.
Licensing Costs and Renewal Terms
Delaware’s wine shipping license fees are exceptionally high. Even the “reduced” $400 license fee is at the high end of DtC shipping licenses across the country, and that allows for only 200 cases per year. The $3,600 is more than double the next highest price license, issued by Illinois for wineries that produce more than 500,000 gallons of wine per year.
But even the higher price license will only allow shipping up to 1,800 aggregate cases, which is such a low volume that it strains credulity that any winery will want to go to through the cost and effort.
Wholesale-DtC Prohibition
Perhaps the most problematic constraint is the prohibition of selling at both wholesale and DtC at the same time. Not only does this sort of rule always severely restrain the DtC shipping channel (such as in Indiana or Louisiana), that Delaware’s ban applies to all brands and subsidiary brands of currently distributing wineries will result in even many small labels that are generally only available through DtC shipment not being available in the state.
Reporting, Tax and Labeling Requirements
Wineries must:
- Use a licensed common carrier that will check IDs at the point of delivery and fulfill their other regulatory obligations.
- Conspicuously label all packages shipped to the state with “CONTAINS ALCHOL: SIGNATURE OF INDIVIDUAL AGE 21 OR OLDER REQUIRED FOR DELIVERY”
- File a regular shipping report to the state Commissioner and the Division of Alcohol and Tobacco Enforcement, detailing their recent activity including name and address of individuals receiving wine and tracking numbers for shipments.
- Remit to the state all excise taxes due on their shipments as if the sale occurred in Delaware.
- Notably, Delaware does not have a sales tax, so that is not a concern for DtC shippers.
- Accept the jurisdiction of the Commissioner and abide by any requests for further information or audits issued by the state.
Why HB 187 is Problematic for the Industry
Despite its appearance, HB 187 is a poison pill for DtC shipping:
- License fees are prohibitively high.
- Volume limits are too low to justify the cost.
- Wholesale prohibition blocks many small and large wineries.
- Compliance burdens discourage participation.
These constraints mean most wineries will likely avoid the Delaware market.
Public and Industry Reactions
In all, the problematic elements of the bill create a monster that Free the Grapes! has said needs to be revamped by the state. Indeed, one of the most pernicious elements of the bill is that it actually sets back the pro-DtC movement in Delaware by establishing a regime that gives the state enough cover to say is available but is instead full of poison provisions that will be extremely difficult to cleanse.
Optimistically, the problems with HB 187 will become immediately apparent and force the lawmakers back to the table to create a DtC wine shipping arrangement that wineries will want to engage in. But the effort to even get this far in Delaware have been long-drawn and painful enough that, unfortunately, this troublesome law will be the best we can get for now.
What HB 187 Means Nationwide
Delaware’s Place in the DtC Shipping Landscape
Delaware joins the DtC map with a law that may set back the movement in the state more than advance it.
Broader Trends in Alcohol Shipping Reform
Nationwide, states are moving toward inclusive, consumer-friendly shipping laws. Delaware’s approach stands in stark contrast.
FAQ on Delaware Wine Shipping Laws
What is HB 187’s key licensing requirement?
Only farm wineries can apply for a Delaware wine direct shipper license.
Can out-of-state wineries ship to Delaware consumers?
Yes, but only if they meet the farm winery definition and are not affiliated with a Delaware wholesaler.
How much wine can a household receive per year?
Direct-to-consumer (DtC) shippers are restricted to a maximum of three cases of wine per household annually, in accordance with customer volume limits.
Can wineries with wholesale ties still ship DtC?
No, any winery affiliated with a wholesaler is prohibited from DtC shipping.
When will the law take effect?
HB 187 was signed into law on August 15, 2025, which would indicate that under Delaware law the bill will take effect in October, depending on additional rulemaking required by the state.