1st BATCH OF FILES AVAILABLE NOW!

Just as it has each of the past 5 yrs, the Direct-to-Consumer Beer Shipping Report cites ongoing interest in ordering beer directly from breweries, especially among craft beer drinkers. Not quite 2/3 of just over 2,000 US adults age 21+ said they want states to expand DTC privileges currently enjoyed by wineries to breweries, according to the annual report compiled by Sovos ShipCompliant (SSC) in conjunction with the Brewers Assn. The survey found that about 1/3 of all respondents drink craft beer at least once per month. And among those "regular craft beer drinkers," over 80% would like to see more availability of DTC shipping. Each of the past 4 yrs, between 3/4 and 80% of regular craft drinkers said they "are likely to purchase" beer thru direct shipping, with over 1/3 "very likely to do so," the report highlights. These likely purchasers of DTC beer tend to be male (57%), white (49%), college-educated (56%), homeowners (74%) and high-income (59%) $100K+ annual household income). Notably, 37% are age 21-34, suggesting high interest among younger legal age drinkers, with another 28% age 35-44. Over 40% live in the South and another 1/4 live in the West.Over 70% of these interested purchasers expect that they'd spend $50 per month, with over half thinking they'd spend over $100. Around 80% of regular craft drinkers believe they'd buy more craft beer and be more likely to try beer from out of state if they could order DTC beer. Over 90% of likely DTC purchasers (around 1/4 of 21+ adults) believe they'd seek out brands at retail after trying them via DTC shipping.Law Changes "Required" to Close Gap Between Beer, Wine Shipping Privileges; Lawsuits Too? Currently, 11 states and DC allow some form of DTC beer shipping, compared to 48 + DC that allow wine to be shipped directly, the report highlights. Just 4 states allow out-of-state retailers to ship alcohol directly to in-state consumers. SSC offers compliance software and services to direct shippers, mostly wineries, so it has a clear interest in expanding alc bev shipping privileges to a wider array of sellers. "Lobbying for law changes is hardly cheap and never simple, but it is required" for change to happen, the report explains, citing recent changes in wine and spirits shipping rules but no changes on beer.However, change is also arriving through the courts, which the report does not acknowledge. Over a half-dozen states that allow in-state suppliers to either ship products to consumers or self-distribute to retailers have seen challenges to those laws from out-of-state suppliers in recent years. While not all have been successful, they've generally fared better than similar challenges aiming to open up cross-border shipping by retailers, which federal courts have largely rejected (tho often for different reasons).BA Walks Careful Line, Noting Value for Small Scale Brewers, Brands In its standalone commentary within the report, the Brewers Assn strikes a balance between recognizing the value of DTC shipping for its smaller members and fully upsetting the applecart on a hot-button issue for distrib partners. But "there simply is not room on wholesaler trucks" for the 9,000+ craft brewers in the country, the org repeated, and month after month distributors report buying less and less craft beer. In short, "the traditional distribution model no longer works for small brewers," most of which produce less than 1,000 bbls per yr, the org wrote.As distribs pare back their portfolios and focus on scale and velocity, "new and small brewers are facing higher barriers to entry, with 'no' decisions from distributors appearing structural, not objective," the org observed. In its view, DTC privileges are best suited for the kind of scale most brewers work under and for niche, high-end specialty products from larger producers. Those are especially the kinds of brands that "beer enthusiasts" seek, but that "wholesalers often don't want&hellip;even from brewers whose beers they already carry." And tho here the BA argues that DTC shipping could be "a game changer" for its smaller members, the org has not embraced DTC advocacy with the same vigor as DISCUS or craft distiller orgs, for instance. Indeed, earlier in the report, advocacy by spirits suppliers is highlighted in direct contrast to the attention the issue gets from the beer industry.

Annual DTC Report Highlights Demand, Ignores Lawsuits; BA Walks Line Between Oppy, Disruption

Publishing Info