As some US states relax their spirits shipping laws, craft distillers are still looking for broader change in order to grow and survive.
The percentage of craft spirits drinkers who would like to receive spirits through the mail, otherwise known as direct-to-consumer (DTC) shipping, currently sits at 85% according to a new report from Sovos ShipCompliant and the American Craft Spirits Association (ACSA).
The figure was at 87% in 2023 and 80% in 2022. In the past year, states such as New York have allowed for DTC shipping, which may be the reason for the slight dip in numbers.
“The data confirms that American adults in general, and regular craft spirit drinkers in particular, remain dissatisfied with current craft spirits shipping laws. It’s time for shipping laws to keep pace with the demand and evolving market,” regulatory general counsel for Sovos ShipCompliant Alex Koral said.
“Increased access to DTC shipping has the potential to benefit consumers, distillers and industry players across the board, particularly at a time when the spirits industry and craft distillers above all are struggling to succeed. There is plenty of precedent with a well-regulated DTC wine market. Spirits producers and consumers simply want to see that same access and opportunity afforded to them.”
Currently, nine states plus Washington DC allow for interstate DTC spirits shipping, yet 65% of Americans and 81% of regular craft spirits drinkers want to see changes in shipping laws to allow for more states than is currently legal. Meanwhile, 92% of regular craft spirits drinkers said that if they purchased and enjoyed a brand via DTC, they would be more likely to look for that brand at retail.
Earlier this year, the ACSA advocated for better distribution channels, chief among them DTC, which elicited a counter response from the Wine and Spirits Wholesalers of America (WSWA), which represents the distributor tier in the US and would stand to lose business from allowing producers to ship directly to consumers. The data suggests that isn’t necessarily the case, using wine as an example of how allowing DTC doesn’t mean people stop buying off the shelf.
“When it comes to craft spirits, there are more choices than ever before – but very few ways for consumers to access them due to antiquated and limited shipping laws,” ACSA CEO Margie A.S. Lehrman said. “As consumers increasingly seek more convenient ways to make their purchases, states will need to give spirits producers the tools they need to meet and expand their customer base. It is time to modify and modernise regulations to align with consumer demands for choice and convenience, and create open and fair competition for this innovative industry.”
The study also found that the current DTC shipping restrictions are hampering distillery growth as brands look to appeal to out-of-state drinkers. Of those regular craft spirits drinks polled, 77% have tried a craft spirit while travelling that they wish they could purchase near their home, up from 71% in 2022. What’s more, 82% of regular craft spirits drinkers say they would be more likely to try a new craft spirit if they were able to purchase it via DTC, an increase from 74% two years ago.
The survey was conducted online within the US by The Harris Poll from 15 to 19 August among 2,032 legal drinking age adults, among whom 641 drink craft spirit at least once a month.
Read Full Story at source (may require registration)
Author: Ted Simmons
