Here are five fun facts about winery DTC shipments, and some resources for stories on wine direct shipping.
Over the past three decades, the number of U.S. wineries has increased five fold to more than 10,000. Thereâ€™s one in every U.S. state!
What drives the DTC Issue?
Consumer choice. Americaâ€™s wineries produce more than 100,000 new labels each vintage, more than any wholesaler or retailer could stock. Itâ€™s all about consumer choice, not, as many believe, the rise of e-commerce although that has certainly contributed.
Why do so few states allow for retailer DTC Shipments?
Over the years, wineries cooperated and supported a common â€œmodelâ€ direct shipment bill. Additionally, many powerful local retailers oppose DTC shipping. Read our blog post
What is a â€œCapacity Cap?
Some states have implemented arbitrary rules banning shipments from wine companies producing, in aggregate, more than 250k gallons, about 106k cases, each vintage. This reduces consumer choice since more than 90% of U.S. total wine production is from wineries and companies producing in excess of the capacity cap. As of September 2020, two states continue the ban (NJ, OH), while others have repealed them (MA, OH).
How Many Legal States are There?
Free the Grapes! has worked with industry lobbyists, regional associations, and the Coalition for Free Tradeâ€™s legal team to streamline onerous regulations and to increase the number of legal states from 17 to 45 as of September 2020. Kentucky is expected to be number 46 by year end. (CFT â€œretiredâ€ in 2014 after achieving its goals. And that’s a fun fact: how many wine industry associations have shut down upon success?).
What Does Free the Grapes! Do, Anyway?
Free the Grapes! is a client of Benson Marketing Group, hired by the industry way back in 1998 to run this campaign. The coalition advocates for augmenting, not replacing, the three-tier system with limited, regulated direct-to-consumer shipments.
Free the Grapes! focuses on two strategies:
First, the coalition engages consumers to actively advocate for DTC bills that support wineries, consumer choice and meet the needs of state regulators and tax collectors. Second, Free the Grapes! keeps the issue alive in the media, especially in states with pending legislation.
Free the Grapes! was founded by five wine industry associations which together represent thousands of U.S wineries. A 501c(6) non-profit California trade association, Free the Grapesâ€™ operations are funded exclusively by contributions from wineries and net income from the Direct to Consumer Wine Symposium, an annual conference.
Expert Sources and Resources