Alcohol Delivery and Underage Drinking: Data-Driven Lessons from Direct-to-Consumer Wine Shipping

By C. Jarrett Dieterle

When it comes to having alcoholic beverages delivered to our doors, America is in a very different place today than it was 24 months ago. As COVID-19 spread across the world, markets were forced to adapt to the delivery economy model that has dominated throughout the pandemic. Although the sale of most goods could readily be converted from brick-and-mortar purchases to doorstep shipping, alcohol was a notable exception. Many states still prohibited liquor stores, grocery stores and alcohol producers from delivering alcohol locally to consumers’ homes, and nearly every state prohibited restaurants and bars from selling alcohol “to-go” or via delivery. And while wineries were able to ship their bottles to customers in most states, distilleries and breweries were largely barred from the direct-to-consumer (DtC) shipping market. The COVID-19 effect on alcohol delivery and shipping has been both broad and deep. As of last fall, the vast majority of states had passed at least some type of alcohol delivery reform, if not multiple reforms. In fact, many states are still actively considering alcohol delivery legislation or planning to do so in the years ahead. As alcohol delivery has taken off, pushback has emerged. Although much of the pushback can be attributed to protectionist impulses by industry stakeholders, some of the concern stems from health and safety concerns like underage drinking as well as driving under the influence. As more lawmakers across the country consider the future of alcohol delivery in their states, it is important to understand these concerns and engage in data-driven investigations of their legitimacy.

R STREET SHORTS NO. 113 April 2022, 5p.