Direct-to-Consumer Spirits Shipping Is Now Legal in California — What You Need to Know

(Photo: California Distillers Association)

On Wednesday, California legislators passed a bill that temporarily allows both in-state and out-of-state distillers to ship directly to consumers. The move has been applauded as a major win by industry veterans, many of whom have been rallying for a lifeline amid economic headwinds and a post-COVID-19 sales slump.

The legislation extends the current allowances for DtC shipping until Dec. 31, 2026. Out-of-state distillers are allowed to participate in the plan so long as they obtain a permit. Changes include an increased daily sales limit from 2.25 liters per person to 4.5 liters per person, and new reporting requirements that will be announced in the near future.

“This is a major step forward for California craft distillers,” Alex Villicana, president of the California Distillers Association, remarked in a news release. “Today, we toast to the result of strong collaboration and advocacy, which would not have been made possible without the leadership and support of Assemblyman Josh Hoover, who authored the bill.”

The American alcohol industry operates within a three-tier system, wherein producers (distillers, brewers, vintners, etc.) are not allowed to sell directly to retailers. Instead, producers are required to interface with distributors or wholesalers, intermediaries that handle shipping logistics and, in many cases, marketing. The system was introduced post-Prohibition in an attempt to prevent monopolies.

DtC shipping tweaks the chain of command. In approved states, consumers can purchase products from a brand’s website, which uses a carrier that will check IDs and collect signatures at the point of delivery. Though distillers are still required to use a third-party fulfillment service, DtC avoids many of the fees incurred by a typical distribution network. For distillers, it’s a cost-cutting measure and an efficiency boost bundled into one.

States including Alaska, Arizona, Kentucky, Nebraska, New Hampshire, North Dakota, Rhode Island, Vermont and the District of Columbia currently allow DtC spirits shipping under various guidelines.

“It’s no secret that 2025 has been the most challenging year yet for craft spirits producers, who are faced with the economic slowdown, the tariff war, an antiquated regulatory structure, and now, another government shutdown,” added Margie A.S. Lehrman, CEO of the American Craft Spirits Association. “This new law creates a much-needed opportunity for craft distillers to reach consumers who are demanding their products.”