Delivery vs. Direct Shipping
How is alcohol delivery different from direct-to-consumer shipping, aka DTC?
The Adult Beverage Alliance is focused on advancing the policy interests of alcohol delivery. To do so, it’s important to clarify not only what alcohol delivery is (see What is Alcohol Delivery?), but what it isn’t. In particular, it’s helpful to differentiate alcohol delivery from direct-to-consumer shipping, aka DTC. Alcohol delivery refers to local delivery of alcohol from licensed alcohol retailers (e.g., grocery stores or restaurants) to consumers.
Alcohol delivery does not include DTC shipping, which typically applies to sales and shipments by alcohol producers (e.g., wineries, breweries, distilleries) to consumers, and most often refers to interstate shipments. Alcohol delivery and DTC are each highly-regulated, but they are distinct, and they warrant different considerations among lawmakers and regulators. This summary is intended to explain the key differences between alcohol delivery and alcohol DTC shipping.
What is alcohol DTC?
The Adult Beverage Alliance is focused on innovation specific to the alcohol delivery arena, so it’s important to distinguish delivery from DTC. Below are some of the basic facts about DTC, along with further explanation on how DTC and delivery differ.
Who sells alcohol for DTC?
Where can alcohol be shipped?
Who fulfills DTC shipments?
Are retailers ever involved in DTC?
How does DTC impact the three-tier system?
What are the key differences between alcohol delivery and alcohol DTC?
Let’s recap alcohol delivery and DTC, and how they’re different.
- Alcohol delivery involves alcohol sold by the same merchants that already sell alcohol to residents of their communities. Delivery facilitates sales made by grocers, convenience stores, liquor stores, and restaurants, by adding a convenient option that today’s consumers want.
- DTC primarily involves sales and shipments by alcohol producers like wineries, breweries, and distilleries, directly to consumers.
- Alcohol delivery refers to local delivery of alcohol, usually with delivery occurring soon after an order is placed. Alcohol delivery is simply a convenient addition to ordering dinner or groceries for delivery.
- DTC primarily involves interstate shipments of alcohol, where the seller is located in a different state than the recipient.
- Alcohol deliveries are made by independent contractors of third-party delivery companies, including the Adult Beverage Alliance members.
- DTC shipments are fulfilled by common carriers, such as those typically used to ship packages.
- Alcohol delivery works within each state’s existing three-tier system, and simply offers merchants and consumers an additional fulfillment option from traditional in-store sales and pickup.
- Alcohol DTC shipments are an exception to each state’s standard three-tier distribution system. DTC is meant to provide alcohol suppliers a means to sell their products directly to consumers, and thus DTC bypasses distributors and retailers in the recipient’s state.