Issue link: http://winesandvines.uberflip.com/i/1199982
2 0 1 9 2 020 BY USING THE WINES & VINES DIRECTORY/BUYER'S GUIDE, YOU AGREE TO NOT REPRODUCE, DUPLICATE, COPY, SELL OR RESELL FOR ANY PURPOSE. © 2020 Wines & Vines Directory 435 DIRECT SHIPPING REGULATIONS ANNUAL SHIPPING REORT States are Paying Closer Attention to Licenses In many ways, the DtC market for wineries has never looked better. e number of states that prohibit DtC shipping is down to just a handful, and the states that do allow it are easing up on some onerous compliance requirements, including package label rules and reporting frequency. But as the DtC market expands, there comes added scrutiny. State regulators want to ensure the DtC sales coming across their borders are legitimate and legal. As a result, common carri- ers are heightening their policies that require proof of an active DtC shipping license before they will contract with businesses to deliver packages containing beverage alcohol. A key focus of this scrutiny is ensuring only properly licensed entities are engaging in DtC sales. Since common carriers can be liable if they deliver packages containing alcohol that didn't come from a licensed party, states will often threaten them with fines or other penalties when they cannot go after the unlicensed party. is has led common carriers to escalate their policies requiring proof of licensure before agreeing to carry packages containing beverage alcohol. is has long been a policy of the common carriers, but its increased enforcement has caught some in the DtC market a bit off guard. However, by ensuring that a license check is performed, common carriers are demonstrating their commit- ment to a compliant and legal DtC market. Ultimately, this should benefit all of us who want this market to succeed. Grow Your Business Unimpeded by Compliance e DtC channel is succeeding, as it is on track to hit another record year, exceeding $3 billion in sales. is explosive growth has enabled wineries to reach new levels of success. However, with the growth comes increased complexity. Keeping up with deadlines, constantly changing tax rates, and compliance regulations from the 45 states that allow direct shipping can prove quite challenging without a solution in place to manage the operations and compliance complexities efficiently. Luckily, ShipCompliant by Sovos makes it easy to navigate the intricacies of DtC compliance so wineries can focus on other aspects of their businesses. Wineries can reduce risk by taking advantage of real-time compliance checks, automated state reporting, and accurate wine-specific tax rates through the dozens of integrations ShipCompliant has with leading industry front end and fulfillment systems. Who is ShipCompliant by Sovos? ShipCompliant has been the leader in automated alcohol beverage compliance tools for more than 15 years, providing a full suite of cloud-based solutions to wineries, breweries, distilleries, importers, distributors and retailers to ensure they meet all federal and state regulations for direct-to-consumer and three-tier distribution. ShipCompliant's solutions reduce risk, lessen the burden of compliance, accelerate bringing products to market, and enable revenue growth. With more than 40 partner integrations, ShipCompliant leads a robust ecosystem of technology partnerships, enabling powerful complementary solutions. 2019 Direct-to-Consumer Wine Shipping Report Every year, we partner with Wines & Vines to provide an update on the trends and statistics for the DtC channel. e Direct-to-Consumer Wine Shipping report provides an in-depth look at channel growth, emerging trends and regions, winery strength by size, and more. To download your copy of the 2019 Direct-to-Consumer report, visit www.dtcreport.com.