Click here to contact your local legislator and let them know you want direct to consumer shipping of NY spirits!
Consumers Are Driving Demand for Spirits Direct-to-Consumer (DtC) Shipping
A recent consumer survey found that 80% of spirits consumers want to be able to legally purchase spirits via DtC shipping. Additionally, 79% of the consumers would like to purchase products monthly and are likely to spend about $108 per month, which would lead to increased tax revenue. The Direct-to-Consumer Spirits Shipping Report indicates that more than 75% of consumers are willing to try craft spirits products from other states via DTC. More than 70% of consumers also reported they have tried craft spirits products while traveling and would purchase it again, but the distiller is not located near their home. This makes DtC an important channel for spirits category growth, and one that helps promote local and state tourism and, in many cases, visits outside of classic tourist hubs. This shows strong support for DtC of spirits despite only being allowed in 11 states and Washington, D.C.
The increased demand for consumer convenience and choice, additional support for distillers, and responsibility measures already in place to prevent illegal purchases all highlight the need for states to adopt measures allowing direct-to-consumer shipping.
Growth of Spirits Industry Increases Need for Direct-to-Consumer Shipping, 3-Tier Modernization
In the last 15 years, growing consumer interest in diverse spirits products has led to the increase in the number of distilleries in the U.S. from just 70 to more than 2,600. The number of distilled spirits products continue to increase, which is resulting in many premium, small batch and craft spirits products not reaching consumers. The Tax and Trade Bureau (TTB) within the U.S. Department of Treasury estimates there are approximately 122,000 spirits brands in the U.S. In 2021 alone, the number of brands increased by 15,460 brands or about 12% compared to 2020. There is simply no way retailers can house and sell every
product in the marketplace. The increase in the number of distillers and distilled spirits brands is happening at the same time the number of wholesalers and retailers continue to consolidate making it harder for distillers to compete for attention from wholesalers and retailers.
Direct-to-Consumer Shipping Enhances the 3-tier System, Leads to Increased Retail Sales & Jobs
Direct-to-consumer shipping has, will and should continue to serve as an additional market access channel to the traditional three-tier system of beverage alcohol distribution.
Expanding distillers’ ability to directly ship spirits to consumers will introduce consumers to many new brands and line extensions that will eventually grow into brands carried by traditional wholesalers and retailers, thus strengthening the spirits business and the three-tier system. In fact, after the Granholm decision in 2005 which increased the number of states participating in wine direct-to-consumer shipping, both liquor store and wholesale jobs have increased. From 2005 to 2021, wholesale jobs have grown by more than 55 percent (from 56,459 to 89,576). Liquor store jobs grew by 23 percent during the same time
frame. Further, retail sales have more than doubled since 2005 by $36.6 billion to $70.2 billion in 2021.
Direct-to-Consumer Shipping Will Grow the Industry as a Whole
There are well established measures already in place to responsibly allow spirits DtC Shipping
Wine producers have responsibly shipped wine direct-to-consumers for more than three decades in New York. There are well established and appropriate responsibility measures in place to restrict minors from illegally accessing beverage alcohol through direct shipment. Just as IDs are required for those seeking entrance into a bar or to purchase beverage alcohol at a restaurant or store, ID checks are required in order for the recipient to accept the delivery. Additionally, an adult signature is required.
You can help New York consumers and distilled spirits producers by supporting S.2852 and A.3132
Go to Ship My Spirit to sign up for more information on DTC campaigns.: https://www.distilledspirits.org/news/spirits-industry-launches-ship-my-spirits-campaign-in-support-of-spirits-direct-to-consumer-shipping-in-new-york/
American Distilling Institute (ADI), Distilled Spirits Council of the U.S. (DISCUS), the New York State Distillers Guild (NYSDG) and The American Craft Spirits Association (ACSA), supports allowing direct-to-consumer shipping in New York which directly benefits local distilleries, consumers and businesses while increasing state tax revenue. Direct-to-consumer shipping is a significant step forward in modernizing the spirits marketplace and meeting consumers where they are.