dtc-wine-report-2023

2024 Direct-to-Consumer Beer Shipping Report

The fourth annual Direct-to-Consumer Beer Shipping Report, presented by Sovos ShipCompliant and the Brewers Association, finds that consumer interest and intent for having their favorite brews shipped to their front doors has continued to grow steadily. The report offers an in-depth analysis of a consumer poll and an economist’s review of the direct-to-consumer (DtC) beer shipping market.

The Sovos ShipCompliant/Harris Poll consumer survey finds that state laws are not keeping up with consumer demand, as nearly nine in 10 (86%) craft beer drinkers believe that current laws in the U.S. should be updated to allow for legal beer DtC shipping in more than the 12 locales where it is currently legal.  Nearly eight out of 10 (79%) regular craft beer drinkers have tried a beer while traveling that they wish they could purchase but it’s not available near their home.  

Read the 2024 Direct-to-Consumer Beer Shipping Report now:

Missed revenue for states and craft brewers

States are missing out on tax revenue by not allowing DtC beer shipping. The numbers show that consumers are willing to spend money each month for craft beer to be shipped directly to their residence. In fact, 69% of those that would like to purchase beer via DtC shipping say they would spend $50 or more per month if they could, while 43% say they would spend $100 or more per month if DtC shipping were available in their home state. 

The survey revealed the following key takeaways:

  • Sustained interest for out-of-state brews. The majority of regular craft beer drinkers (60%) would be more likely to try beer from out-of-state breweries if DtC shipping was an option, similar to the 59% who said they would do so in 2023.

  • DtC shipping can lead to increased sales. Hear it straight from the source: 86% of regular craft beer drinkers say they would be likely to try a brewery’s latest beer if there were a DtC shipping option, with 83% saying they would be more likely to purchase more frequently from that brewery.

  • Craft beer drinkers appreciate the opportunity to buy brews directly, with 86% of respondents thinking more positively of a brewery who offers DtC shipping, and 70% who would likely post on social media about the brewery. 

The Direct-to-Consumer Beer Shipping Report also profiles DtC craft beer drinker demographics. Download your complimentary copy of the report today for an in-depth look at the consumer and producer sides of this emerging market.

*This survey was conducted online within the United States by The Harris Poll on behalf of Sovos ShipCompliant between January 2-4, 2024, among 1,970 U.S. adults ages 21+, among whom 615 drink craft beer 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 complete survey methodology, including weighting variables and subgroup sample sizes, please contact helloship@sovos.com.

A Buyer’s Guide to DtC Alcohol Shipping Compliance Software

Choosing the right solution for your business

Introduction

With rising ecommerce demands and more people than ever before working remotely, direct-to-consumer (DtC) shipping of beverage alcohol has also grown in popularity. Consumers have become accustomed to being able to have their favorite wines, beers and spirits shipped directly to their front door. Producers, shippers and retailers are all working toward maintaining DtC compliance, but it’s hardly an intuitive process, especially as businesses grow and regulatory landscapes change. 

Whether you’re a large-scale winery expanding into new states, or a small-scale distillery growing its product line, you’ve come to the realization that maintaining DtC shipping compliance is no easy feat. You understand what you need to do, but perhaps aren’t sure the best way to go about doing it. Is investing in DtC shipping compliance software even necessary? 

Not making that investment could cost your organization time and money—especially if you are shipping to more than a couple of states or to states with complex rules and reporting requirements. Maybe you have one employee dedicating days every single month to trying to account for all state requirements. What happens if you catch a mistake? Do you ship the product out, knowing you’ll get fined after the fact? Or do you delay the shipment, leading to unhappy customers? 

The cost of “doing nothing” can be immense, which is why we’ve outlined how to find the right DtC alcohol shipping compliance software. 

DtC shipping laws vary from state to state, meaning that producers need to keep current on how much they are shipping (to manage against customer aggregate volume limits), to whom (i.e., do you have age verification measures? Are you avoiding shipping to dry counties?) and ensuring the appropriate taxes are determined, collected and submitted. Additionally, the regulations vary by product—just because a state allows DtC wine shipping, does not guarantee that it allows DtC beer shipping, for example. 

Non-compliance can lead to: 

  • Cease and desist letters 
  • Fines and/or monetary penalties 
  • Revoked/non-renewed licenses

 If you lose one license, it could affect others, including a production license 

Whether you’re a producer, shipper or retailer, it’s critical to know where you’re shipping. From there, understanding—and adhering to—those destination states’ regulations is necessary. But as companies expand into new territories, grow their product lines or scale their business in another way, it’s not always easy to keep tabs on what’s required. That is where DtC alcohol shipping compliance software can be beneficial. 

Most DtC shippers end up deciding between sticking to manual processes or utilizing compliance software. Here’s a look at how the two approaches compare, and what to look for if you decide to adopt compliance software. 

 

Manual processes 

  • How are new laws found and tracked?

Usually one employee, or a small team, is tasked with keeping pace with the latest regulations. Tracking might take place in binders, notebooks or a series of unwieldy spreadsheets that may or may not allow for multiple-employee access. 

  • What is the license, product registration and renewals process?

Employees are responsible for keeping track of which states different products are registered in, what the current fees and required paperwork are, and when critical renewal deadlines are coming up. If renewals for licenses and/or products are missed, you will be unable to sell into that particular state. 

  • How long is setup/implementation?

There is no real “implementation” process, but employee training when there is turnover or an outage could take time, depending on how much manual work is required. 

  • How are compliance checks handled?

Manually, often after the sale rather than in real-time, or—most riskily—not at all. 

  • What is the process for determining, reporting and remitting taxes?

This likely falls to one employee, or a small team for hours of cumbersome paperwork. With such variation in tax rates by state and even municipality, and how taxes are often applied differently for alcohol versus general merchandise, the opportunity for error is high. 

  • What is the employee burden?

Depending on the number of states a business ships into and how many products must be accounted for, the burden could be very heavy. Employees may be required to devote up to several days per month toward compliance. Of course, some companies outsource all of these tasks to consultants or similar providers—for a fee, which can often exceed the cost of an automated software solution on an ongoing basis. 

DtC alcohol shipping compliance software 

  • How are new laws found and tracked?

Rule and regulation updates at all levels (federal, state, other jurisdictions such as county) are kept up to date by a team of regulatory experts. 

  • What is the license, product registration and renewals process? 

A centralized database, visible to all team members, houses all state licensing and federal and state product registration information. The system can send proactive renewal reminders starting months in advance of the renewal deadline, to allow plenty of time for taking action. Renewal and registration requirements are kept up to date at all times by a team of regulatory experts. 

  • How long is setup/implementation? 

Ideally, the DtC shipping compliance software implementation process should have your organization up and running in a matter of weeks so that you can quickly gain value from using the software. Look for a solution that offers a dedicated implementation team who will help guide you through account set up and use. 

  • How are compliance checks handled? 

Automatically and in real time at the point of sale via integration with your ecommerce platform. In some cases, non-compliant orders maybe be flagged for adjustment or cancellation before a customer completes an order. Otherwise, orders should be quarantined for review and action by the team so that no risky non-compliant orders are completed. 

  • What is the process for determining, reporting and remitting taxes?

Again, look for automated, real-time tax determination that is both alcohol-specific and as granular as the rooftop level, as in some jurisdictions, tax rates can vary from one side of the street to the other. 

  • What is the employee burden?

While managing compliance and reporting still requires employee time and attention, expect to save hours—possibly days—per month on compliance and reporting work. Expect employees to experience greater job satisfaction in working with a streamlined, modern compliance solution versus inefficient and time-consuming manual processes that are subject to human error. 

Review your internal processes to determine what the best, most reliable option will be for your business. Remember to account for any future growth plans as well—a single employee handling compliance may work for operating in one territory, but expanding beyond that could become time-consuming, more difficult to maintain and more prone to human error. 

Great ideas can come to life when even one person has the will to help make them possible. Ensure that you have buy-in from internal stakeholders and budget authority to make an investment in DtC shipping compliance software a reality. 

Keep these questions in mind when accounting for budget and buy-in: 

Budget 

  • Is the timing right?

Make sure your business isn’t compromising key objectives—the timing may never be perfect, but working with the right partner can mean reaping time-saving benefits within the first month of implementation. 

  • What are we spending now?

Remember that the cost of doing nothing could outweigh the initial upfront costs of DtC shipping compliance software. The cost of a solution could quickly be recouped from avoiding fines and having employees gain time back to refocus on other key business initiatives that will drive additional revenue. 

  • What will the overall cost be?

The right partner works with your budget and can scale with you as your business grows. Different companies have different needs, and the right DtC shipping compliance software can meet requirements at all levels of production. Tiered pricing options that evolve with the scope of your business are often a good fit. 

 

Buy-in

  • Who needs to be on board?

Your team should understand how the right solution can reduce risk, centralize processes and help gain efficiency. Even one key person acting as a liaison and project champion can create ongoing success. 

  • What are key concerns?

Look for a solution provider that offers a dedicated implementation team, unlimited free support from experts and continued education on the software, all of which can help ensure that utilizing a new solution is seamless from implementation and beyond. 

Conclusion: Why Sovos ShipCompliant? 

Working with a trusted industry partner can help ensure that your business stays current and compliant in all DtC processes, including license management, production requirements and tax determination and reporting. Utilizing a centralized cloud-based platform that is integrated with major DtC ecommerce, point-of-sale and fulfillment systems, you can rest assured that you’re mitigating risk by staying compliant. 

Additionally, the right partner has an implementation process that gets your organization online in weeks—not months. A dedicated implementation team can also ensure you know the necessary information to set up your account, while also letting you have visibility into the compliance process. 

“We decided to go with ShipCompliant thanks to the integrations it has with our fulfillment partner, allowing us to automatically pass orders from our website through ShipCompliant, to our warehouse, which then fulfills and ships the orders. We could also receive the tracking information back through ShipCompliant, making the process much easier for all parties and bringing a level of automation we did not have previously.”

Vegan Wines

“We absolutely fell in love with the idea of how [ShipCompliant] managed the DtC compliance process. Then we found software that would work with it, not the other way around. We were up and running within a month and humming along just perfectly normal within a quarter. ShipCompliant makes it possible to do our job and we can trust that [their] information is accurate. You just can’t put a price on customer satisfaction and peace of mind.”

Moshin Vineyards

“ShipCompliant is an indispensable tool for our company. As a growing business, we recognized early on the need for an all-inclusive compliance software system. ShipCompliant not only met these needs but exceeded expectations by adding the DtC module. DtC is a great way to build our brand following and the integration was seamless.”

Sovos ShipCompliant can help in the compliance process, allowing you to experience fully compliant, accurate and seamless DtC shipping management.

Learn How

Keep Pace with Changing Requirements in the Beer Industry with Sovos ShipCompliant

Introduction

Breweries of all sizes are aware of the rapidly changing regulatory requirements for both three-tier and direct-to-consumer (DtC) shipping channels. Expanding product lines, moving distribution into new territories and accounting for all federal and state laws can put extra pressure on the organization. What does it take to maintain compliance without compromising other aspects of your brewery’s business? 

Here are real-world examples of how Sovos ShipCompliant can help those in the brewing industry get a handle on compliance. 

 

“Despite the patchwork and difficult landscape of malt beverage compliance, our team at Sovos ShipCompliant has gone above and beyond to ensure a smooth, functional, effective solution for managing filings, registrations, and compliance. We’re grateful for the time savings associated with managing disparate state laws and policies, as well as the peace of mind it offers.”

Use case #1: Brewery Automates Manual Processes & Centralizes Compliance 

Colorado-based Left Hand Brewing Co. struggled with scaling issues as it entered into new states, with employees manually completing all paperwork. The tedious and time-consuming process raised the risk of missing deadlines and overwhelmed the staff. Additionally, Left Hand had limited visibility into specific state compliance requirements, pushing employees to guess on numerous issues. 

The Sovos ShipCompliant Market Ready solution helped remove guesswork from Left Hand’s compliance efforts, while also automating the manual processes necessitated by mountains of paperwork. Compliance was centralized into a single platform, ensuring accuracy and providing peace of mind. The brewery can now expand into new regions faster than before and ensure that its product is on shelves when expected.  

“We’ve grown too much to let guesswork lead us to the next step. [ShipCompliant] helped us in that regard [with] a centralized point where everything lives. It’s as easy as the push of a button to get all of our paperwork done.” -Director of Accounting & Administration at Left Hand Brewing

Use case #2: Improved Registration Process Helps Brewery Focus on Biz Development 

Uinta Brewing had manual processes in place for maintaining compliance and conducting state product registrations. This inefficiency put extra pressure on employees and prevented them from being able to properly focus on other business priorities. 

With Sovos ShipCompliant 3-Tier Reporting and Market Ready solutions, Uinta has one platform where it can get answers on state requirements, register a product and keep track of licenses and documents. This helps the brewery save time and reduce the risk of errors. 

Uinta Brewing now has a “one-stop shop for regulatory compliance,” according to its director of regulatory compliance. Employees reduced their time spent on compliance from weeks to days and eliminated the risk of getting stuck on small regulatory issues. The brewery can get products to the market and in the hands of their customers faster. 

“It comes down to confidence—knowing that we can go to one place and get answers on state details and state requirements, and then in that same platform be able to actually register a product and keep track of licenses and other documentation. It's the Swiss Army knife of regulatory compliance.”

Director of Regulatory Compliance

Uinta Brewing

What Sovos ShipCompliant can do for you

Direct

  • Real-time compliance checks against more than 1,000 state rules and regulations
  • Rooftop-level, alcohol-specific tax determination 
  • Streamlined reporting 
  • Integrations with all major DtC e-commerce, point-of-sale and fulfillment systems 

Market Ready

  • Streamlined state product and brand label registrations 
  • Integrated directly with 10+ government systems, including the TTB 
  • Increased visibility with insight into ETAs for federal and state registration approvals 
  • A central repository for all brand compliance data, state requirements and forms, and license renewal deadlines 

Want to learn more? Contact our team to find out how Sovos ShipCompliant can help.

Maintain Compliance in the Ever-Evolving Wine Market with Sovos ShipCompliant

Introduction

Whether you’re a large-scale winery looking to start a wine club or subscription service, or you’re a small vineyard that needs to improve its approach to wholesale compliance, regulations and requirements can quickly change. How can you maintain compliance without losing sight of other key business initiatives? 

Here are real-world examples of how Sovos ShipCompliant can help those in the wine space get a handle on compliance. 

Use case #1: Online Wine Club Saves Money on Reporting, License Management 

Vegan Wines is a subscription-based club and online wine club that ships to 38 states. The startup did not have the staff to dedicate ample time to track and manage compliance for every order. The team spent large amounts of time processing online and wine club orders through the system, used spreadsheets and manual data entry to check compliance and then individually forwarded the information on to their fulfillment partner. 

Sovos ShipCompliant Direct helps manage shipping compliance, taxes and licenses through one solution. Direct assists with streamlining the reporting process, reduces the risk of errors and incorrect reporting, and keeps all licensing information in one place. 

Vegan Wines saves about $10,000 per year, or about 10 minutes per order, by using Direct.  

“We decided to go with ShipCompliant thanks to the integrations it has with our fulfillment partner, allowing us to automatically pass orders from our website through ShipCompliant, to our warehouse, which then fulfills and ships the orders. We could also receive the tracking information back through ShipCompliant, making the process much easier for all parties and bringing a level of automation we did not have previously.”

Use case #2: Winery Eliminates Manual Reporting & Improves Customer Experience 

Family-owned and operated winery Moshin Vineyards produces approximately 10,000 cases annually with 50/50 direct-to-consumer and three-tier distribution. It was replicating state reporting forms in spreadsheets, manually transferring data from hard copies and then submitting forms at the end of each month. Employees had to know each state’s individual rules, looking up changes as they occurred. 

ShipCompliant Direct offers a comprehensive resource for state regulatory information. Moshin receives automatic notifications on state reporting due dates, license expirations and custom customer shipping email notices, ensuring customers get their packages. 

Moshin saves over 50 hours a month on checking compliance and knows that its team will be quickly informed of any compliance issues, eliminating shipping problems.  

“We absolutely fell in love with the idea of how [ShipCompliant] managed the DtC compliance process. Then we found software that would work with it, not the other way around. We were up and running within a month and humming along just perfectly normal within a quarter. ShipCompliant makes it possible to do our job and we can trust that [their] information is accurate. You just can’t put a price on customer satisfaction and peace of mind.”

Use case #3: Importer & Wholesaler Streamlines Compliance 

California-based importer and wholesaler Martine’s Wines needed better structure and efficiency for its compliance processes. A lack of a reliable system made it difficult to know when a state license might need a renewal, when to provide notice for when products were registered to state distributors, or when to inform clients on state license and shipping law requirements—which are often in flux. 

The Sovos ShipCompliant 3-Tier Reporting and Market Ready solutions helped Martine’s Wines gain greater visibility into the business with regulatory compliance, license management and automated registrations. The products provided a centralized database, shortened the time to market for new products and better empowered employees to bring the focus back to core business priorities. 

“Having these compliance-related resources at my fingertips gives us better peace of mind that our business is following the rules because anything can be looked up in a matter of seconds.”

Vice President

Martine’s Wines

 

What Sovos ShipCompliant can do for you

Direct

  • Real-time compliance checks against more than 1,000 state rules and regulations
  • Rooftop-level, alcohol-specific tax determination 
  • Streamlined reporting 
  • Integrations with all major DtC e-commerce, point-of-sale and fulfillment systems 

Market Ready

  • Streamlined state product and brand label registrations 
  • Integrated directly with 10+ government systems, including the TTB 
  • Increased visibility with insight into ETAs for federal and state registration approvals 
  • A central repository for all brand compliance data, state requirements and forms, and license renewal deadlines 

Want to learn more? Contact our team to find out how Sovos ShipCompliant can help.

dtc-wine-report-2024

2024 Direct-to-Consumer Spirits Shipping Report

The spirits industry stands on the brink of a major opportunity with the expansion of direct-to-consumer (DtC) shipping. But despite growing demand, the regulatory landscape remains a significant hurdle. The 2024 Direct-to-Consumer Spirits Shipping Report, produced in collaboration with the American Craft Spirits Association, dives deep into these challenges, as well as the growing opportunity for DtC shipping. 

What’s Inside? 

The 2024 report reveals how expanded access could reshape the future of the spirits industry by breaking down legal barriers, opening new revenue streams for distilleries, and meeting the expectations of today’s convenience-driven consumers.  

Featuring data from over 2,000 U.S. adults and 641 regular craft spirits drinkers, the report includes: 

  • The Regulatory State of Spirits Shipping: A state-by-state breakdown of the current legal framework governing DtC shipping across the U.S. 
  • Roadblocks and Limitations: Examination of the specific legal and logistical barriers that prevent distillers from fully capitalizing on DtC shipping. 
  • Legislative and Policy Developments: An update on key legislative efforts in 2024 aimed at expanding spirits shipping across the U.S. 
  • Consumer Preferences: Detailed insights from a nationwide survey of regular craft spirits drinkers, revealing the growing desire for direct shipping of craft spirits. 
  • The American Craft Spirits Association Perspective: A viewpoint from the ACSA on why DtC shipping is critical for the future success of the craft spirits industry. 

Get the report now

Unmet Consumer Demand for DtC Spirits Shipping = Untapped Revenue

Today’s consumers don’t just want quality spirits—they expect convenience. In an era where home delivery is the norm for everything from household products to wine, craft spirits drinkers are seeking the same level of accessibility for their favorite beverages. However, current shipping restrictions mean that most distilleries are unable to meet this demand.

If DtC shipping were legalized, regular consumers would spend an average of $1,500 annually on getting craft spirits shipped directly to them, highlighting the significant revenue distilleries are missing out on due to limited access. For distilleries looking to expand beyond local markets and reach out-of-state consumers, this represents a powerful, untapped source of growth and engagement.  

85% of regular craft spirits drinkers want the ability to purchase their favorite spirits via DtC shipping (+5% since 2022)

It's not just distilleries that stand to benefit, either. The reality is that DtC shipping and retail can coexist, each playing a crucial role in expanding consumer access and supporting the craft spirits market. Allowing distilleries to reach consumers directly creates a pathway for smaller producers to introduce their products to a wider audience. As those consumers become loyal to the brands they discover through DtC, they will continue to seek them out in stores, driving up retail demand.

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.

The craft spirits industry can’t afford to leave money on the table.

Learn how DtC shipping could open new avenues for customer engagement and consistent revenue.

Download the report now

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. 

Crafting the Future of Spirits Shipping

The spirits sector has the potential to experience a transformation like what we’ve seen in DtC wine shipping, now a $4 billion market. By modernizing outdated shipping laws and expanding access to DtC spirits shipping, the industry stands to unlock substantial new revenue streams and bring craft spirits to consumers in ways never before possible. 

This is more than just a shift in how spirits are sold; it's a fundamental change in how the industry operates, offering distilleries the ability to grow their brands and build stronger, more direct relationships with consumers. The question is no longer whether the market is ready for DtC spirits shipping, but how quickly the industry can adapt to meet this demand.

Download the 2024 DtC Spirits Shipping Report

dtc-wine-report-2025

 

The 2025 Direct-to-Consumer Wine Shipping Report by Sovos ShipCompliant and WineBusiness Analytics is your go-to resource for navigating this rapidly changing market. Packed with exclusive insights from the most comprehensive analysis of the direct-to-consumer (DtC) wine channel, this report delivers unparalleled insight into the trends that are shaping the industry.

In a year defined by economic challenges, inflationary pressures and changing consumer behaviors, the DtC wine shipping channel faced unprecedented hurdles. Equip your business with the data and strategies needed to navigate the evolving market challenges and maximize opportunities in 2025 and beyond.

Download Your Copy of the 2025 DtC Wine Shipping Report

Unpacking the Biggest Shifts in DtC Wine Shipping

report-infographic

What’s Inside the 2025 DtC Wine Shipping Report?

Channel-Wide Performance Trends
  • Total market value and composition by winery size
Address Consumer Spending Shifts
  • Learn how to respond to changes in consumer buying behavior—including the drastic change in lower-priced wine shipments alongside the slowdown of premiumization. 
Regional and Varietal Insights
  • Explore how top wine regions like Napa, Sonoma and the Central Coast fared. Discover which wine types are gaining traction amid challenging market conditions.
Get Your Free Copy

Navigate Change with Confidence— Actionable Insights to Guide Your DtC Strategy

 

The DtC wine market is evolving rapidly. Whether you’re a winery seeking to grow your DtC channel or an industry professional aiming to understand the big picture, this report provides the insights you need to:

  • Learn how economic pressures and shifting consumer behaviors are shaping the DtC wine market and what it means for wineries of all sizes.
  • Discover trends in price inflation and consumer spending to make more informed decisions about your pricing approach.
  • Explore regional, seasonal and varietal trends to better align offerings with customer demand.
Download Now

About the 2025 DtC Wine Shipping Report 

For more than 15 years, Sovos ShipCompliant has partnered with WineBusiness Analytics to provide the wine industry’s most trusted insights. Using anonymized data from over 1,300 wineries and advanced statistical modeling by WineBusiness Analytics, this report ensures unparalleled accuracy and industry relevance. Data is meticulously validated and analyzed to provide a holistic view of the DtC market, representing >99% of U.S. wineries.