While there is a lot of interest among retailers and consumers for DtC shipping opportunities, the map for retailer DtC shipping map is a lot smaller than it is for other entities, particularly wineries. Part of the reason for this is the perception of unfair advantages that a remote retailer might have over local retailers, which leads to demands for laws restricting “foreign” competition. There is also concern among regulators that they lack the jurisdiction to properly monitor and control retailers located in other states. However, the general success of retailer shipping in the states that do allow it would seem to belie these concerns.

Another issue currently facing the retailer DtC shipping market is the lack of a national policy on whether states can extend discriminatory permissions for local retailers to do DtC shipping, while blocking that permission for remote retailers. The 2005 Supreme Court case Granholm v. Heald established the modern jurisprudence around DtC shipping of alcohol, primarily that states could not allow local shipping of wine while prohibiting it from out-of-state sources. However, that case only mentioned producers (wineries, really, but it has become accepted that the principles would also apply to breweries and distilleries) and it left open the question of retailers. There have been efforts over the years to extend Granholm to retailers, but they have been unsuccessful so far and even faced increasing pushback in just the last year or two.

Nevertheless, if the number of states that allow out-of-state retailer DtC shipping were to expand, there would be great benefit for consumers. There are a number of retailer DtC myths saying that out-of-state retailer DtC permissions would harm local retailers and that states would miss out on the tax revenue. This is untrue, as evidence shows that where allowed to ship DtC, retailers are active in complying with regulatory requirements, including getting licensed and protecting against sales to minors. Those states that allow retailer DtC shipping have earned additional tax revenue they otherwise would not have and they continue to have thriving local retailer markets.

The most important part of any brewery expansion strategy: Understanding your audience. First and foremost, you need to identify which demographics are most likely to buy your products. Where do they live? How old are they? What are they looking for in a wine, beer, or spirit? What other brands do they currently buy?

Once you figure out what motivates your consumers to buy certain alcoholic beverages, you can begin speaking their language. If you’re trying to introduce locally successful products to a new region, learn about the audience in that area and appeal to their interests. A product that resonates with the locals and sells well in, say, San Diego might not have the same impact in Tennessee.