Issue link: http://winesandvines.uberflip.com/i/953481
2 0 1 8 2 019 BY USING THE WINES & VINES DIRECTORY/BUYER'S GUIDE, YOU AGREE TO NOT REPRODUCE, DUPLICATE, COPY, SELL OR RESELL FOR ANY PURPOSE. © 2019 Wines & Vines Directory 423 DIRECT SHIPPING REGULATIONS ANNUAL SHIPPING REORT States are Paying Closer Attention to Licenses In many ways, the DtC market for wineries has never had it 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 that are coming across their borders are legitimate, legal sales. As a result, common carriers 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 commitment 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 in their business. However, with the growth comes increased complexity. Keeping up with deadlines, constantly-changing tax rates, and compliance regulations between the 45 states that now allow direct shipping can prove to be a challenge without a solution in place to manage the operations and compliance complexities efficiently. Luckily, ShipCompliant by Sovos makes it easy to navigate the complexities of DtC compliance so wineries can get back to focusing on their businesses. Wineries can reduce risk by taking advantage of real-time compliance checks, automated state reporting, and accurate wine-specific tax rates by utilizing the dozens of integrations ShipCompliant has with leading industry front end and fulfillment systems. Who is Sovos? Sovos was built to give businesses what they need to stay ahead of increasing regulatory burdens and risks anywhere in the world. Sovos solutions offer real-time access to the most complete and accurate regulatory analysis, enabling our clients to grow their businesses unimpeded by compliance. Sovos' ShipCompliant solution is an integrated SaaS compliance platform for wineries, breweries, distilleries and importers of beverage alcohol products doing business in the direct-to- consumer and three-tier channels within the United States. We've been in the wine business for over a decade, and we love helping our customers find new ways to grow their businesses. With our industry-leading software and commitment to legendary support, we take the burden of compliance off of our clients' plates, giving them freedom to focus on what they do best: Making great wine. 2018 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 2018 Direct-to-Consumer report, visit www.dtcreport.com.