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Craft distillers in California have been granted an extension of the DTC shipping bill<\/p>\nTrade body the Wine & Spirits Wholesalers of America (WSWA) has slammed California\u2019s new direct-to-consumer (DTC) shipping bill, claiming it \u201cweakens\u201d the three-tier system.<\/p>\n
Craft distillers in California have been granted an extension of the DTC shipping bill<\/p>\n
Legislators recently passed Assembly Bill (AB) 1246<\/a>, a DTC shipping bill that allows local craft distilleries to continue shipping in California and will enable out-of-state craft distilleries to ship into the market by obtaining a permit. This will be effective from 1 January 2026.<\/p>\n The bill was\u00a0temporarily passed in January 2022<\/a> in response to the Covid\u201019 pandemic and has been extended for one year until 31 December 2026. Wineries in California have been allowed to ship their products directly to consumers for more than 30 years.<\/p>\n However, in a statement the WSWA told The Spirits Business it \u201cstrongly opposes\u201d the new legislation and is calling on policymakers to avoid making it permanent.<\/p>\n Chelsea Crucitti, the WSWA\u2019s vice-president of state affairs, said: \u201cWSWA strongly opposes the passage of AB 1246 because it weakens California\u2019s proven three-tier alcohol system that protects consumers, ensures efficient tax collection, and keeps beverage alcohol out of minors\u2019 hands.\u201d<\/p>\n The WSWA pointed to a survey from its Educational Foundation in 2022, which found 72% of American mothers were concerned DTC spirits shipping across state lines could increase underage access to alcohol.<\/p>\n The online survey was conducted between 2-8 August 2022, among a sample of 2,000 mothers nationally, including 600 in New York and 600 in Texas.<\/p>\n A recent report by fellow trade body the American Craft Spirits Association (ACSA) revealed 67% of legal-drinking-age Americans want to see laws change<\/a> to expand DTC spirits shipping.<\/p>\n Crucitti continued: \u201cDTC spirits shipping may sound convenient, but with 72% of mums worried DTC would make it easier for their children to access alcohol, WSWA urges lawmakers to consider the likelihood of increased underage access, impact to state tax revenues, and potential counterfeit and illicit sales before voting to make spirits DTC shipping permanent.<\/p>\n \u201cCalifornia can support craft distilleries without sacrificing the accountability that keeps the alcohol market fair and safe.\u201d<\/p>\n The WSWA previously voiced its opposition to the passing of the initial bill in 2022, when it claimed the move would threaten thousands of jobs across the wholesale tier, and more than 38,000 roles at retail stores, restaurants and bars.<\/p>\n The craft spirits sector in California has experienced a major slump with the number of distillers plummeting by 45% to 207 between August 2024 (379) and August this year.<\/p>\n The figures came from the ASCA\u2019s new Craft Spirits Data Project report, which revealed the number of US craft distilleries plunged by a quarter<\/a> in the 12 months to August 2025.<\/p>\n Related news<\/p>\n \n \n
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