Is Direct-to-Consumer Shipping in Maryland's Future?

Imagine my surprise (having been born and raised in Maryland) when I walked into the Whole Foods around the corner from my sister’s place in Alexandria, Virginia one hazy summer afternoon three years ago to find that there were two entire aisles devoted to beer and wine. In the grocery store?! I was, to say the least, floored and slightly scandalized. It had never once in my then eighteen years occurred to me that where, when and how consumers can purchase alcohol is not a federal mandate, but up to state legislators.

Having said this, I feel compelled to admit that it never particularly bothered me when I was growing up that we would have to stop at a special store, and I certainly never imagined having alcohol shipped directly to our door. Perhaps this is because I was not yet 21, but it’s entirely more likely that I simply couldn’t miss what I’d never experienced.

Either way, I never thought much about the where and the when and the how of purchasing alcohol until I began working at Basignani in January.

Which brings me to the real subject of this post: HB 234 and SB 248.

Currently on the legislative table, these bills propose (on the recommendation of the Comptroller’s report) that Maryland legalize direct-to-consumer shipping for both in- and out-of-state manufacturers of alcoholic beverages.

Only 13 states in the union do not allow direct shipment of wine to consumers. Some of the reasons “why not” include accessibility to minors and potential tax evasion. The bill addresses many potential issues, including placing stringent regulations on both the manufacturer and the controlled carrier (i.e. UPS, FedEx, etc.) that require verification of the consumer’s age both at the time of purchase and upon receipt of the package.  

To understand the other concerns connected with the bill, it is first necessary to understand how alcohol distribution currently works in Maryland.

We have a three-tier system:

In words, manufacturers sell to wholesalers who distribute to the retailers where you and I can purchase our preferred labels. The new bill would allow manufacturers and consumers to bypass wholesalers and retailers for direct-to-consumer purchases. This would, according to the Comptroller’s report, benefit consumers motivated more by brand than by price. Which makes sense, if you stop to think about it. Look at it this way:

The average consumer is not going to go online, purchase wine or beer, pay shipping, and then wait the three to five days for the package to arrive. It’s simply much more expedient (and cost-effective!) to run to the corner store. But for those consumers who enjoy a particular winery or wish to purchase a collector’s bottle in an auction, well—this is their chance.

According to the Comptroller’s report, “the three-tier regulatory framework was implemented [following the end of Prohibition] to achieve the goals of temperance, orderly sale of alcoholic beverages, and respect and obedience to law” (40).

Whether or not this new bill is in violation of this intent, well that is up for our elected officials to decide.

The bill will be heard by legislative committees in both the House and the Senate on Friday, so contact your local legislator and have your say!

For more information, see the Comptroller’s Report or the Maryland Wineries’ Association website.