Delaware Passes Restrictive DTC Bill

On August 15, Delaware’s Governor Meyer signed into law HB 187 (Smith),  a direct wine shipping bill with so many limitations as to be commercially unworkable. The law takes effect August 15, 2026, and sunsets in 2031. We strongly opposed the bill and worked with common carriers to try to remove problematic provisions. Unfortunately, the new law has a per winery annual volume cap of 1,800 cases and as signed, prohibits direct shipping by wineries currently represented by a licensed Delaware wholesaler, including subsidiary brands of larger wine producers. It also requires the Delaware Alcoholic Beverage Control Commissioner to create and post on a public website those monthly lists from wholesalers with manufacturers, products and SKU numbers. Delaware wholesalers and retailers that opposed direct shipping in past years were neutral on HB 187, while the 5 Delaware wineries, which stand to benefit from this law most, were strongly supportive.

Amendments offered by Wine Institute were ignored and those from common carriers removing a requirement to scan and retain purchaser IDs and to provide server training to delivery drivers were rejected. Both UPS and FedEx have stated they cannot comply with these requirements. Further, the carriers recognize these limits on out-of-state winery shipping are so stringent as to make obtaining the $500 biennial license not worth their time and effort.

Since the bill passed, our DE lobbyist has spoken with Delaware Alcoholic Beverage Control Commissioner Jackie Metta who specifically asked for our assistance crafting rules over the next year. We gratefully accepted and will share regulations, forms and experience from other states. She understands how frustrated consumers will be with this new law and is receptive to our help creating rules that goes as far as the statute allows. She also is required to report to the Governor and General Assembly by June 1, 2028 on the impact of this law on Delaware retailers. Find media messaging from FreeTheGrapes! explaining limits in the law and expressed our disappointment with it here.