Alabama Becomes 47th State to Open for Direct-to-Consumer Wine Shipping

Alabama Governor Kay Ivey signed legislation (H.B. 437), based on Wine Institute’s model direct shipping bill, on May 13, 2021. This makes Alabama the 47th state to allow winery direct-to-consumer (DTC) shipping. Wine Institute thanks Representative Terri Collins for sponsoring the bill and Governor Ivey for signing it. H.B. 437 becomes effective on August 1, 2021.

Under the new law, wineries that obtain a DTC license will be allowed to ship up to 12 cases annually per consumer during a twelve-month period. There is an initial application fee of $200 with subsequent renewals costing $150 per year. Direct shippers will be required to file quarterly reports and collect and remit all state and local sales or use taxes and excise taxes. Wine Institute worked with industry members to negotiate compromise language that will allow DTC licensees to utilize the services of a fulfillment house that has obtained a license from the ABC Board for DTC.

Other DTC Developments:

DTC Changes in Tennessee
On May 12, 2021, Tennessee Governor Lee signed legislation (H.B. 1481) to increase the amount of wine that a direct shipper may now ship to a consumer per year, from three to six cases. This is for direct shippers producing less than 270,000 liters (30,000 cases) per year. The three case per person, per year, per winery limit still applies to direct shippers that produce 270,000 liters or more annually. Also effective immediately, a winery direct shipper may only ship wine of its own production or wine brands produced exclusively for their own use.