What is Alcohol Delivery?
An Overview

The Adult Beverage Alliance is focused on innovation and policy in alcoholic beverage delivery. So, what is alcohol delivery? Alcohol delivery refers to local delivery of alcohol sold by the same merchants from whom consumers typically purchase alcohol. Local delivery of groceries and meals has exploded in recent years, and consumers rely on the convenience of getting everyday items, including alcohol, delivered to their doors. Alcohol sold for delivery is a vital sales channel for grocers, convenience stores, liquor stores, and restaurants, as it increases the scope of their sales options beyond traditional in-store sales.

Alcohol delivery operates within the existing alcohol regulatory framework in all states where it’s allowed, and by doing so, it expands the business opportunities for the entire alcohol distribution chain. In particular, since alcohol sales for delivery are made by the same licensed retailers that have traditionally sold alcohol to consumers, the alcohol three-tier distribution system is undisturbed, and in fact it is bolstered through alcohol delivery. That’s because retailers that sell alcohol for delivery are still operating within their states’ traditional distribution system, typically purchasing alcohol inventory from in-state wholesalers, who have in turn purchased their stock from in-state and out-of-state producers. As a result, alcohol delivery serves to expand the market for the entire industry, without detracting from any tier of the industry or altering the alcohol distribution system that’s been in place for nearly 100 years.

Alcohol delivery operates within the existing alcohol regulatory framework in all states where it’s allowed, and by doing so, it expands the business opportunities for the entire alcohol distribution chain. In particular, since alcohol sales for delivery are made by the same licensed retailers that have traditionally sold alcohol to consumers, the alcohol three-tier distribution system is undisturbed, and in fact it is bolstered through alcohol delivery. That’s because retailers that sell alcohol for delivery are still operating within their states’ traditional distribution system, typically purchasing alcohol inventory from in-state wholesalers, who have in turn purchased their stock from in-state and out-of-state producers. As a result, alcohol delivery serves to expand the market for the entire industry, without detracting from any tier of the industry or altering the alcohol distribution system that’s been in place for nearly 100 years.

Food Delivery Worker Carrying Two Paper Bags

Frequently Asked Questions

Adult Beverage Alliance members get a lot of questions about alcohol delivery – below we’ve provided responses to some of the most frequently asked questions, as well as some helpful resources.

Where can alcohol be delivered?

Alcohol can currently be delivered to consumers in 40 states. See our map, here. Alcohol delivery refers only to local delivery of alcohol, so the purchaser is in the same state, and almost always in the same local area, as the licensed retailer that sells the alcohol.

Who sells alcohol for delivery?

Alcohol intended for delivery is sold by the same stores that sell alcohol for in-store pickup. Retailers licensed to sell beer, wine, and/or distilled spirits for delivery include liquor stores, grocery stores, convenience stores, and other similar merchants, and sometimes also include restaurants and bars. State laws vary as to how different types of retailers are licensed, what alcoholic beverage commodities they are permitted to sell, and whether they can deliver to consumers.

Who delivers alcohol?

It varies depending on state laws. In some states, alcohol can be delivered only by employees of the retailer that sells the alcohol. In other states, third parties like the Adult Beverage Alliance members are permitted to deliver alcohol. See our map, here . Of the 30 states that allow third parties to deliver, the third party must obtain a permit to delivery in 18 states. See our map, here.

What kinds of alcohol can be delivered?

It depends on state law and the type of merchant selling the alcohol. In some states, manufacturer-packaged beer, wine, and distilled spirits can be delivered to consumers. In other states, only beer and/or wine can be delivered. These rules vary based on the state’s delivery laws, and by the laws that dictate what products particular types of retailers can sell. For example, in some states, grocery and convenience stores can sell distilled spirits, while in others, they can sell only beer and possibly wine. Restaurant delivery rules also vary substantially by state. See our map, here. In some states where restaurants are permitted to deliver alcohol, they can deliver not only manufacturer-sealed alcohol, but mixed drinks as well. Ultimately, state and sometimes local alcohol licensing and delivery laws dictate what types of merchants can sell and deliver a particular type of alcohol.

What other rules apply to alcohol delivery?

Alcohol delivery laws address various issues aimed at regulating the expanding world of alcohol ecommerce and delivery. The types of topics that are often covered in delivery laws include the following:
• Third-party delivery company permitting;
• Age verification requirements;
• Driver education and background screening;
• Use of third-party apps for ordering and payment processing;
• Hours of sale and delivery;
• Quantity limits;
• Geographical limits for local deliveries.

What is the three-tier system, and how does alcohol delivery affect it?

The three-tier system refers to the alcohol distribution system that’s been in place in every state to one degree or another since the repeal of prohibition nearly 100 years ago. The “three tiers” are manufacturers/suppliers, distributors, and retailers, and the three-tier system generally works as follows: consumers can purchase alcohol only from retailers such as liquor stores, grocery stores, convenience stores, restaurants, and bars. Those retailers in turn must generally purchase their supply of alcohol from licensed distributors, who must purchase alcohol from the supplier tier. There are many exceptions to this general framework; for example, consumers can sometimes purchase alcohol from suppliers, and suppliers can sometimes distribute alcohol directly to retailers. For purposes of alcohol delivery, the important point is that alcohol deliveries exist entirely within each state’s existing three-tier system, since all sales for delivery are made by the same licensed retailers that are already selling alcohol to consumers. Thus, alcohol delivery as a whole, and the mission of the Adult Beverage Alliance, serves to enhance each state’s three-tier system, not to circumvent or otherwise disrupt it.

What is the Adult Beverage Alliance’s role in alcohol delivery?

The Adult Beverage Alliance is designed to advance the interests of alcohol delivery by creating, debating, and advocating for changes to state laws that haven’t caught-up with consumer and industry demands. The Adult Beverage Alliance members are each engaged in third-party delivery of alcohol, and we aim to advance the interests of alcohol delivery in a safe and responsible manner.