Wholesaler Organization Raises Concerns About Lack of ID Checks When Buying Alcohol Online

(Photo: Wine & Spirits Wholesalers of America)

Today, Wine & Spirits Wholesalers of America (WSWA), in partnership with Morning Consult, released new survey findings that measured alcohol shipping practices, consumer sentiment and purchasing behavior. The survey consisted of 2,200 U.S. adults who were contacted over three days in August 2023. Of the adults surveyed, about 25% indicated that their ID was not checked when receiving their direct-to-consumer (DTC) purchase. 

WSWA emphasized the results of their survey but the demographics of this 25% is a little unclear. 

Online retailers like Drizly, ReserveBar, UberEats and Instacart are go-to brands for alcohol delivered directly to the buyer’s door. The convenience of not having to shop directly attracts consumers but if IDs are going unchecked then underage people could have easy access to alcohol. 

It is illegal to sell or buy alcohol across most states to individuals under the age of 21. However, how a seller determines age does have to gray area, and as someone gets older, getting asked for an ID to buy alcohol gets a little less frequent. Many states have laws that allow for a person to purchase alcohol without identification if they simply look over a certain age, as young as 35 in some cases.

Regardless, WSWA is attempting to raise the alarm about this potential issue.

“That data is clear,” said WSWA CEO and President Francis Creighton. “When we talk about expanding interstate alcohol shipping, we’re talking about dismantling the three-tier system to benefit 10% or fewer American adults while more than doubling ID check compliance failure rates. Expanding shipping threatens the ability of states to protect public health and safety.”

“The bottom line is that the convenience of having alcohol arrive on consumers’ doorsteps is overshadowed by the danger alcohol shipping poses to public health and safety,” said Creighton. “Not to mention the locally licensed retailers that are the current front lines in the fight to keep alcohol out of the hands of minors.”

Alcohol wholesalers’ business is dependent on the U.S.’s three-tier system, and the rise of DTC alcohol purchases could affect profits. 

IWSR Drinks Market Analysis projects that the value of e-commerce will increase by $7.5 billion over the next five years and reach $40 billion by 2027. Although, the growth of this sector has significantly slowed. During the pandemic, e-commerce was growing at a rate of 31% but between 2022 and 2027 it is only expected to grow by about 4.5%. 

“After the pandemic boom, ecommerce value saw a slight correction in 2022 (-2%) as restrictions in most markets were removed and shoppers returned to the on-trade and to bricks-and-mortar stores,” says Guy Wolfe, Head of Ecommerce Insights, IWSR. “In the near term, online growth will pick up but remain depressed by a weak macro-economic outlook, before a return to steadier growth from 2024.”

The number of people purchasing online has also shrunk from 24% in 2022 to 17% in 2023. It appears most people still prefer to buy alcohol in person. WSWA survey found that a majority of people prefer to purchase alcohol going to grocery stores, liquor stores or at restaurants and bars. 

There is a growing movement in the craft alcohol sector to expand DTC because then the business receives more of the profits. Age restrictions may represent a barrier to this growth but implementing stricter measures when purchasing and receiving alcohol deliveries would likely solve this issue.

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