The COVID-19 pandemic is changing the way people buy and consume alcohol. While local bars and restaurants continue to struggle in the face of occupancy limits and closures, sales have moved from on-premise to off-site. As a result, many states have relaxed their liquor laws to allow for more direct-to-consumer (DTC) sales.

Online shopping has grown in popularity during the pandemic as consumers strive to limit their exposure to the world outside of their pods. Allowing distilleries to ship ready-to-drink (RTD) canned cocktails and other hard beverages offers them the opportunity to greatly expand their off-site sales.

Kentucky Allows DTC of Home-Grown Spirits

The Kentucky state legislature recently passed HB 415, which allows breweries, distilleries, and wineries to ship liquor to parts of the state that allow alcohol sales (i.e. any non-dry counties), as well as other states with DTC laws. Representative Adam Koenig, Interim Co-Chair of the Licensing and Occupations Committee was the first consumer to order Kentucky bourbon online.

“I am honored to be able to place the first order. Hitting ‘complete purchase’ symbolized so much more than buying a great bottle of bourbon. For Kentucky citizens, it means both convenience and expanded options to choose from,” Koenig said. “It is an extraordinary day for the men and women who work at our distilleries, wineries, and breweries as well as Kentuckians who want a bourbon or glass of wine with dinner.”

The bill allows for inter-state sales as well, at least between other states with reciprocal laws. Kentuckians can also order hard drinks from businesses in other states with their own online liquor sales. Such laws offer a lifeline to small breweries and other beverage companies during a particularly challenging time for the industry.

“This is bigger than Kentucky,” said Koenig. “We are now a national model for how to expand opportunities. These changes have been a long time coming but I think it is particularly meaningful that it is implemented now, after so many of these companies have stepped up to manufacture hand sanitizer and other products to help stop the spread of the COVID-19 virus. They answered the call in a powerful way.”

Virginia RTD Makers Ship to Homes

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Virginia passed its own DTC laws earlier in the pandemic, too. Gareth H. Moore, CEO of Virginia Distillery Company in and president of the Virginia Distillers Association, called the change in rules a “win-win-win.” “It is a win for Virginians because this new form of market access makes it easier for consumers to purchase all forms of Virginia Spirits products,” Moore said.

“Unbeknownst to most, Virginia Spirits are small-batch, artisan scale production, and as a result these products are often only available for sale at distillery tasting rooms or regionally at ABC stores.”

Devils Backbone is an example of a Virginia distillery now shipping its canned cocktails to residents of the state.  “We ship these direct to your doorstep if in you live in Virginia. So, go ahead, click that magic little “Add to Cart” button,” the website announces.  The company produces Orange Smash, a canned vodka drink with fresh crushed citrus, which won a silver medal in last year’s San Francisco World Spirits Competition.  Devils Backbone also makes a premixed gin & tonic, vodka mule, and vodka soda.  Prices range from $9.99 to $11.99 for a 4-pack.

Cocktails To-Go

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Certain states have even allowed bars and restaurants to sell their own pre-mixed cocktails to-go. Will these new laws become the norm, post-pandemic (whenever that is)? Hopefully these changes will stick and continue spreading to other states.

Perhaps the pandemic will help put an end to some of the country’s archaic, post-prohibition era liquor laws. Opening up the market and allowing consumers more choices, as Moore said, is truly a win-win.

Erin Grafton
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