Republicans stay optimistic on pair of alcohol delivery bills

Two upstate Republicans remain optimistic that a pair of bills aiming to bring mail delivery of wine, beer and spirits to a consumer’s doorstep will get action in the upcoming legislative session.

“This idea that liquor stores around the state are going to have to shutter their doors because [a winery] can ship directly to a consumer is absolutely ludicrous; it’s absolutely false. And it has been absolutely proven in other states to be false,” said Rep. Jeff Spiegelman, R-Clayton.

House Bill 259, sponsored by Spiegelman, would allow farm breweries, microbreweries and craft distilleries to conduct direct-to-consumer sales of wine, beer, spirits, mead and hard cider.

The bill would also allow Delaware liquor stores to conduct home deliveries. The legislation contains provisions requiring the licensing and training of delivery workers, and mandating that those receiving the order are identified and at least 21 years old.

House Bill 262, sponsored by Rep. Mike Smith, R-Pike Creek, seeks to modernize Delaware law by allowing director-to-consumer wine sales under the following conditions: 

• Carriers, like FedEx and UPS, would need to obtain special licenses to handle wine shipments
• Wine shipments would need to be specially labeled
• Wineries shipping their products to Delaware would need a state license
• Wineries pay the same state alcohol taxes levied on retail sales
• Restrict deliveries to adults over the age of 21, who must sign for the package
• Limit households to no more than three cases of wine per year
• Prohibit the resale of shipped wine.

Smith said his bill targets a niche market, noting that the 50 largest wineries produce more than 90% of American wine. There are more than 11,000 wineries in the U.S., the vast majority of which are small businesses producing vintages that are not carried by distributors nor available on local retailers' shelves.

Supporters of the bill note that the legislation would not result in any lost sales for Delaware package stores. In the states that have enacted similar laws, they said retail sales have increased after the laws took effect. Republicans noted a December 2012 report by the Maryland Comptroller’s Office on the impact of that state’s direct-to-consumer wine shipping law, enacted 17 months earlier, which found that local retail sales jumped 3.61% after enactment.

Both bills were introduced in July and are awaiting action in the House Economic Development/Banking/Insurance & Commerce Committee.