A majority of legal-drinking-age (LDA) consumers believe that states need to allow for direct-to-consumer (DTC) shipping of beer, according to a survey conducted by The Harris Poll on behalf of Sovos ShipCompliant, a bev-alc shipping and distribution compliance company.
The online survey was conducted between January 2-4, and included responses from 1,970 LDA adults, 615 of whom drink craft beer at least once a month. Survey results were released in a report co-authored by Sovos and the Brewers Association (BA).
Eleven states plus Washington, D.C., allow for interstate shipping of beer, including Alaska, Kentucky, Nebraska, New Hampshire, North Dakota, Ohio, Oregon, Vermont and Virginia, according to the report. More highly regulated shipping is also allowed in Pennsylvania, with specific wholesaler or retailer licenses, and in Rhode Island, when a consumer makes the purchase in person.
More than half of survey respondents said they have tried a beer while traveling, but were unable to purchase it in their home state. That number increases to 79% when including frequent craft consumers (those who drink craft beer at least once a month).
“The option for DTC shipping of beer could have a significant impact on revenue for breweries, as Americans continue to express their intent to increase both the quantity of craft beer purchases as well as a likelihood to try craft beer from out of state if they could do it this way,” Sovos wrote. “Breweries being able to provide this option to their customers could benefit not only from increased sales, but also brand promotion and word-of-mouth recommendations. The opportunity for a larger, well-regulated direct-to-consumer shipping channel that complements three-tier distribution remains clear.”
“Often characterized by opponents as harmful to the current regulatory environment, direct-to-consumer shipping in fact partners with it, the proverbial rising tide lifting all boats to a status quo that offers better selection, more access to market and more opportunities to everyone in the three-tier system,” the BA added.
More than two-thirds of survey respondents (68%) believe states’ DTC shipping laws need to be updated, up from 66% in Sovos’ 2023 survey, according to the report. That percentage increases to 86% when including only craft drinkers.
If laws did change, 45% of respondents said they would likely purchase from an out-of-state brewery in the future (46% in 2023), while 78% of regular craft drinkers would. One-third of craft drinkers (33%) would be very likely to purchase DTC in the future.
Shipping beer is expensive, and consumers are willing to pay more for the convenience, according to Sovos. Nearly two-thirds of respondents (63%) said they would spend $50 or more a month on DTC shipping orders, and 35% said they would spend $100 or more a month. Respondents averaged a predicted monthly spend of $86.
Craft drinkers are willing to spend more, with 69% willing to spend $50 or more per month, and 43% willing to spend $100 or more per month, with an average predicted monthly spend of $100.
Respondents would also be willing to buy from breweries more often, according to the report. More than half of total respondents (51%) said they would purchase from breweries more if DTC shipping was available (52% in 2023), while 60% said they would be more likely to try out-of-state breweries (59% in 2023). More than three-quarters of craft drinkers (77%) said they would purchase more if DTC shipping was an option (79% in 2023), while 85% said they would be more likely to try out-of-state breweries (also 85% in 2023).
Additionally, DTC shipping could impact how consumers interact with breweries, beyond direct purchases, according to the report. More than half of total respondents (62%) said they would be more likely to recommend and think positively about a brewery if DTC shipping was available, 44% would likely share about the brewery on social media and 39% would join a beer club or subscription.
For craft drinkers, 86% would be more likely to recommend and think more positively about a brewery, 70% would share about the brewery on social media and 68% would join a beer club or subscription.
“The fact is, with more than 9,500 craft brewers in the United States and more consolidation of the wholesale and retail tiers, craft beer must expand to other market access opportunities like DTC,” the BA wrote. “There simply is not room on wholesaler trucks – or on retailer shelves – for all the offerings available.
“This is true even in local regions, but more so when you consider the craft producers who have a small and loyal following, but no ability to expand enough to utilize a wholesaler’s services,” the trade group continued. “For these brewers, legal DTC shipping would be a godsend, a new way to create and maintain relationships with customers, in much the same way that DTC wine created opportunity for small wineries decades ago. “