TAKE ACTION TO SECURE YOUR RIGHT TO HAVE CRAFT-SPIRITS DELIVERED TO YOUR DOOR
Time Remaining to Take Action
One silver lining of Covid19 was emergency regulations allowing direct-to-consumer shipping for spirits. Prior to March, 2020, California craft distilleries were not allowed to ship spirits (vodka, gin, rum, whiskey) direct-to-consumer due to outdated prohibition laws. Customers had to physically visit the distillery for the ability to purchase their spirits. And, when they do visit, they are limited to purchasing only 2.25 liters (3 - 750ml bottles) per person, per day.
Starting on April 1st, distilleries will be prohibited by law from shipping on-line orders safely to consumers' front doors.
Making Direct-to-Consumer shipping permanent will prove to be a:
WIN for Consumers (convenience, accountability, safety, & choice)
WIN for Small Business (revenue & employment)|
WIN for Large Business (revenue & employment)
WIN for the State of CA (increased taxes)
The emergency direct-to-consumer shipping laws are set to expire on March 31st. At that time, distilleries will not be able to ship spirits to you anymore. NOW is the time to make your voice heard by asking your state senator and assembly member to support SB 620.
A MORE IN DEPTH PERSPECTIVE
Over the last 2 years, California distilleries have been allowed, and have proven they can safely ship spirits using common carriers, like UPS and FedEx, requiring ID Check and adult signature verifications. Currently, small distilleries ship 20-30% of their total sales Direct to Customer. This is a substantial revenue source that craft distillers cannot afford to lose.
DTC legislation for wineries created a financial boon for all stake-holders growing the industry from 700 wineries to 4,000 and increasing sales from $5 billion to $40 billion. It will do the same for distilleries. Instead of seeing DTC as an issue where someone loses and other gain, we should look at the wine industry to see that it is really a win-win proposition.
- The Wholesaler and Retailer Benefit
Most California distillers would love to partner with distributors and see their products on store shelves and in restaurants, but need to increase brand recognition before distributor and retailers can profitably work with them. No one profits if the product doesn’t sell though. Direct to consumer shipping is that distribution on-ramp for small distilleries enabling us to grow so we can be successful in the three-tier system.
- The Labor Benefit
Direct to Consumer Shipping is the key element that will allow distilleries to grow - creating new jobs. As distilleries grow, they will secure distribution creating new jobs for distributors and retailers. Shipping more means more jobs for UPS, FedEx, and manufacturers shipping materials. And, as distilleries grow they will buy more raw materials and equipment creating more jobs for truckers and California farmers.
- The Consumer Benefit
Direct to Consumer shipping benefits the consumer by providing them with safety, accountability, convenience, and choice. The pandemic has dramatically, and permanently, changed consumer behavior cementing on-line shopping as the dominant means of purchasing. Consumers are busy and demand the ability to buy spirits from the convenience of their computer, just like every other purchase they make. Currently customers have to visit our tasting room if they want to make a purchase. They don’t understand why there are different shipping laws between wine and spirits.
- California’s Benefit
California will benefit from increased jobs and tax revenue. Spirits excise tax is $3.30 per gallon. 16 ½ x higher than the .20 cents per gallon for wine.