Following Years of Debate, USPS May Soon Be Able to Ship Alcohol — But Industry Giants Remain Divided

 A return to postal banking and entry into the alcohol delivery business could generate billions of dollars for the struggling United States Postal Service, some economists and lawmakers say. (File Photo by: zz/STRF/STAR MAX/IPx 2020 12/23/20)

Senators have once again introduced the USPS Shipping Equity Act to Congress. The bipartisan legislation — that has been proposed and failed twice over the past two years — would finally allow the United States Postal Service to ship beer, wine and spirits within permitting states.

If passed, the bill would give the USPS a slice of the over $3 billion in yearly profits that private couriers like FedEx and UPS generate from alcohol deliveries.

Many industry veterans are excited. Others, not so much.

As it stands right now, the USPS doesn’t ship anything that could be misconstrued as alcohol, not even repurposed wine or beer boxes. Proponents say that the laws are out-of-date and argue that a change in protocol could help the USPS address its much-discussed financial woes.

Bob Pease, CEO of the Brewers Association, urged the public to support the bill: “Small and independent breweries produce hundreds of styles of beer, but due to distributor consolidation, there are fewer opportunities to get their products to consumers. Direct-to-consumer shipping is a critical way for these businesses to make their low-volume products accessible to the people who want to buy them.”

Alcohol producers are understandably excited at the prospect of easier shipping. Alcohol e-commerce generated a whopping $15.46 billion in 2022 alone, a number that is projected to climb higher year after year.

However, those numbers come at the expense of brick-and-mortar retailers who see none of the profits from direct-to-consumer shipping.

Direct-to-consumer alcohol shipping cuts out the middle-man, for better or for worse. (Photo: Jack Williams/Pexels)

American Beverage Licensees (ABL) issued strong criticism of the bill, saying “It jeopardizes what is the most vibrant alcohol marketplace in the world, where companies large and small can compete and thrive, and consumers are afforded a wider selection of products than ever before.”

In its statement, the ABL also raised concerns about illegal alcohol shipping, a hot-button topic within the debate that has led to the bill’s failure during previous proposals.

Discussions about illegal shipping usually center on underage consumers. A 2022 compliance check carried about by Massachusetts regulators found that 96% of digital platforms accepted orders from a 15-year-old consumer, 43% did not obtain a signature upon delivery and 26% simply left alcohol at the doorstep.

Were the USPS to somehow aid in the shipment of alcohol to minors, it wouldn’t be a great look for the federal government.

Given the circumstances, it’s unclear whether the bill will pass in its current state. If it doesn’t, we’ll be sure to expect its reappearance in around a year.

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