Rhetoric is heating up about direct sales in the wine and spirits industry. As with many other industries, technology and the Internet are bringing inevitable changes that create friction for the establishment, in this case the Three Tier System that includes wholesalers and retailers, who also stand to benefit from the expansion of the market. Like we saw in the music and publishing industries, consumers, equipped with their smartphones, have more buying power and selection than ever.
While those on various sides of the debate attack each other's credibility and motivations, the data shows us that direct sales using an e-commerce platform, such as Vinoshipper, among others, are safe, reliable, and good for consumer, producers, and states for tax collection. Direct sales grew by almost 14 percent in the U.S. last year, setting a record at $4.2 billion in 2021.
While alcoholic beverages require stricter regulations than other consumer products, technology enhances our ability to enforce age-verification measures.
As mentioned in previous articles, there are four main areas regulators are focused on, including Age-verification, Licensing and Tax Compliance, and Auditability. Think of the four areas as ALTA.
Currently legal in 47 states, more jurisdictions are adopting policies to allow the direct shipping of wine, with many considering expansion to include beer and spirits. In growing numbers, regulators and lawmakers are well versed on the issues and understand the value e-commerce brings, including better compliance, tax revenue, reporting, and accountability.
“We encourage the states to examine the effects of their regulations on small producers and their ability to compete, including their access to distribution,” says a February 2022 report from the Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) and the Food and Drug Administration (FDA).
In California, Senators Dodd, McGuire, and Allen have authored bills progressive for the state’s wine industry, particularly those wineries impacted by the pandemic and wildfires.
American consumers are well-accustomed to easy transactions through the convenience of technology. They expect more from their institutions and have less tolerance for rhetoric and politics from prohibition-era institutions who are fighting inevitable change.
About Vinoshipper
Vinoshipper is an end-to-end compliance, tax, and e-commerce platform that gives wineries, distilleries, and other alcohol producers the ability to sell directly to consumers while navigating the complexities of regulatory compliance and tax collection in real time. Every sale through the platform is guaranteed to be compliant.
By employing subject matter experts that work directly with regulators, the company is committed to helping producers comply with all laws, including age verification prior to purchases, state tax collection and reporting, and package tracking.
The company facilitates the expansion of direct sales across the United States for small and medium-sized producers and gives consumers more variety and brands to choose from. This helps create open and fair competition by removing barriers for independent businesses.
With more than 15 years of continual development and reinvestment in the platform, Vinoshipper is now the market leader in direct sales compliance and business software.
Headquartered in Windsor, California, Vinoshipper was launched in 2006 to help small producers. It is among the fastest-growing companies in the heart of wine country.
About our CEO & Founder
Steven Harrison is the President & CEO of Zero Link Markets, the company that operates Vinoshipper, an e-commerce and compliance platform for direct sales of alcohol products. The business facilitates small and medium-sized alcohol producers to sell and ship their products directly to consumers. He has more than 25 years working in finance and operations management and has been involved with several early-stage businesses, ranging from software companies to medical devices and consumer products.
As the co-founder of Zero Link Markets, Steven had the vision to create the Vinoshipper platform to help small businesses comply with the complex, multi-jurisdictional regulations and reporting requirements involved in selling wine, beer, and spirits.
Sixteen years after it started in 2006, the platform is at the forefront of the Direct-to-Consumer (DTC) movement, helping to transform and modernize the industry which dates to the Prohibition era. With more than 2,500 producer clients using the platform, Vinoshipper is one of the largest compliance businesses in the country.
When he is not helping his team with the rigorous job of compliant sales and shipping, Steven spends most weeks talking with public officials about the policy nuances related to DTC and advocating for new laws that support the safe and legal shipment of alcoholic beverages.
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Locations | Address | State | Country | Zip Code |
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Vinoshipper | , Windsor | California | United States of America | 95492 |