Sending a bottle of wine, beer or liquor can be a great way to celebrate a special occasion or share a taste of local flavors with family and friends in faraway places. However, shipping alcohol is not as simple as packing it up and dropping it off with UPS. There are important rules and restrictions to be aware of, whether you‘re trying to send a gift to a friend or are a business looking to expand your boozy offerings to new markets.
In this post, we‘ll answer some frequently asked questions about shipping alcohol through UPS, including:
- Can individuals ship alcohol via UPS?
- What are the requirements for businesses to ship alcohol with UPS?
- How do state laws impact alcohol shipping?
- What are some alternatives for gifting alcohol across long distances?
By the end, you‘ll have a clearer understanding of how to compliantly and legally get those delightful drinks delivered. Let‘s hop in!
Can You Ship Alcohol with UPS as an Individual?
The short answer is no. UPS alcohol shipping is heavily regulated and limited strictly to licensed businesses. As an individual without the proper alcohol licenses, it is prohibited to ship any beer, wine or liquor via UPS, whether you‘re sending a gift to a friend or are an online seller trying to fulfill an order.
UPS is very clear about this policy on their website:
"UPS only accepts packages containing wine or beer for delivery by UPS services from shippers who are licensed under applicable law and who have signed and entered into a contract with UPS for the transportation of wine or beer."
The same goes for liquor and spirits.
Shipping alcohol illegally as an individual can result in some stiff penalties. Fines can be hefty – up to $2,000 in some states. Your package could get intercepted and destroyed. In serious cases, you might even face felony charges for unlawful sale and distribution of alcohol. It‘s simply not worth the risk.
So while it might be tempting to try to sneak a special bottle to your buddy across the country, using UPS to ship alcohol person-to-person is a big no-go. But don‘t worry – we‘ll discuss some legitimate alternatives later on.
Requirements for Businesses to Ship Alcohol with UPS
Licensed alcohol-related businesses can ship with UPS but must follow strict protocols. Whether you‘re a craft brewery, an online wine shop or a spirits distributor, you‘ll need to meet these core requirements to get started:
-
Licensure – The shipper must have the proper federal and state licenses to manufacture, sell and/or distribute alcohol. This may include shipper permits, producer/supplier licenses, wholesale licenses, retail licenses, and/or direct shipping licenses.
-
UPS Alcohol Shipping Agreement – Licensed alcohol shippers must sign a special UPS agreement for wine or spirit shipping. This ensures the shipper understands and agrees to follow all of UPS‘s policies for properly packaging, documenting and shipping alcohol.
-
Packaging & Labeling – Alcohol shipments must meet strict UPS guidelines for proper packaging in molded foam or corrugated dividers/liners to protect against breakage. They must include special alcohol shipping labels.
-
Age Verification – Shippers must use a UPS adult signature service that requires the recipient to show ID and sign for the package to confirm they are 21+.
-
State Compliance – Shippers must comply with the alcohol beverage laws of both the origin and destination states. Some states restrict or prohibit direct alcohol shipments entirely. More on navigating those complex state laws next.
Meeting these stringent UPS requirements involves a lot of time, paperwork and expense. But they are essential for maintaining compliance and avoiding costly legal consequences as an alcohol business.
The alcohol e-commerce market is growing rapidly, making compliance all the more important for businesses looking to cash in. Online alcohol sales reached $2.6 billion in 2019 and are projected to exceed $7 billion by 2025. An estimated 9% of alcohol sales now occur online, up from just 1% in 2016.
COVID-19 has only accelerated the shift to alcohol e-commerce and delivery. During the pandemic, online alcohol sales spiked as much as 234% versus the prior year as consumers sought convenient and safe ways to get their drinks. Many states even temporarily relaxed shipping restrictions to support the industry.
All of this growth spells opportunity for alcohol brands and retailers, but only if they can navigate the complex world of shipping compliance. Failure to properly manage licenses, registrations, reports and tax remittances can result in costly fines and legal penalties that could derail expansion plans.
So while the UPS requirements may seem daunting, being proactive about shipping compliance is key to taking advantage of the alcohol e-commerce boom. Investing in compliance solutions can help automate licensing, order fulfillment and reporting to keep your business on the right side of regulations as you scale.
While UPS policies are consistent across their network, alcohol shipping laws vary widely from state to state. This creates a tangled web of rules for shippers to navigate.
When Prohibition ended in 1933, the 21st Amendment gave states primary authority over alcohol distribution and transportation within their borders. So each state can decide what types of alcohol can be shipped directly to consumers, who can ship, and how much can be shipped per time period.
Some states, like Utah, prohibit direct-to-consumer alcohol shipping altogether. Most states allow licensed wineries to ship to customers, but many prohibit retailers and out-of-state sellers from direct shipping. For example:
- Massachusetts residents can only receive direct wine shipments, not beer or liquor, and only from wineries producing under 30,000 gallons per year.
- Kentucky prohibits all direct-to-consumer alcohol shipments, except from in-state wineries and distilleries.
- Oregon allows direct shipping of wine, beer and liquor from licensed producers and retailers, with few restrictions.
Quantity limits also vary widely. Delaware residents can only receive up to 2 cases of wine per month. Alaskans are limited to 4 liters of beer or wine and 2 liters of liquor per shipment. But Floridians can receive unlimited amounts directly from licensed shippers.
For interstate shipments, shippers must comply with the laws of both the origin and destination states. So even if your state allows you to direct ship spirits, for example, you can only ship to consumers in states that also allow inbound liquor shipments.
It‘s a lot to untangle, but alcohol shippers must do their homework to understand and abide by all relevant laws in the states they ship to and from. Thankfully, there are services like Sovos ShipCompliant that can automate compliance checks on every order to prevent improper shipments.
Failure to comply with state shipping laws can lead to seizure and destruction of shipments, fines, and loss of your shipping agreement with carriers like UPS. Some states like Georgia have felony penalties for unauthorized direct shipping. So it pays to do it right.
The regulatory landscape is constantly evolving too. Since the start of 2020 alone:
- Oklahoma, Mississippi and Alabama passed new laws to allow direct-to-consumer wine shipments
- Florida removed its previous 2 cases per year limit on direct wine shipments
- Kentucky now allows distilleries to ship directly to consumers in reciprocal states
Shippers must stay on top of these frequent changes to maintain compliance and capitalize on new market opportunities. Automated compliance tools can help by updating rules in real-time as laws change.
Alternatives for Gifting Alcohol Long-Distance
So you can‘t personally mail your Uncle Bob his favorite bourbon for his birthday using UPS. But don‘t despair – there are still some good ways to get him his gift without risking the wrath of shipping police:
-
Order direct from producer – Cut out the middleman and order the alcohol sent straight from the source. Most wineries, breweries and distilleries have online shops and can ship their goods legally since they hold the proper licenses. They‘ll handle all the UPS requirements and only ship to states they‘re allowed to.
Pros:
- Get access to exclusive/small-batch products not available in stores
- Avoid retail markups
- Support independent producers
Cons:
- Limited selection vs larger retailers
- May have order minimums or maximums
- Watch out for higher shipping costs
-
Use a licensed e-commerce delivery service – Third party sites like Drizly, Minibar, and Saucey have popped up to make gifting alcohol much easier. They partner with local retailers in the destination area to fulfill the order and deliver it safely. Just enter the recipient‘s address, browse the available selection, and add your gift message.
Pros:
- Super convenient way to send a gift in just a few clicks
- Can deliver in under an hour in many areas
- Let your recipient choose from a wider variety than one producer offers
Cons:
- Prices may be a bit higher than in store
- Delivery fees and minimum order amounts may apply
- Not yet available in all areas
-
Send a non-alcoholic gift instead – If the alcohol shipping maze has your head spinning, consider swapping that booze for something that‘s easier to mail. You could send a gift card to their favorite local spot, a set of nice bar tools, a cocktail recipe book, or a gourmet snack that pairs well with their preferred drink.
Pros:
- No shipping restrictions to worry about
- Can be sent anywhere quickly and affordably
- Lots of room for creativity and personalization
Cons:
- May not have the same "wow" factor as a fancy bottle
- Some may see it as a bit of a cop out
Ultimately, nearly 44% of drinking-age adults have now purchased alcohol online. But many others are still hesitant, primarily due to concerns about secure packaging and safe delivery. Whichever gifting method you choose, be sure to clearly communicate the age verification requirement to your recipient to avoid any unpleasant delivery mishaps.
Conclusion
While sending a boozy gift in the mail seems like it should be a simple proposition, shipping alcohol with UPS is anything but simple. There are a lot of legal limitations and logistical hoops to jump through.
For individuals, shipping alcohol via UPS is prohibited. Trying it could get you in some serious hot water. But by sending gift cards, ordering straight from producers, or using handy liquor delivery apps, you can still spread some cheer from afar.
Businesses can ship alcohol with UPS but must be properly licensed and meet extensive UPS requirements around packaging, labeling, signatures and more. Above all, they must diligently research and comply with the alcohol shipping laws of every state they send to or from.
As the alcohol e-commerce market continues to mature, more consumers will come to expect smooth and seamless delivery of their favorite drinks. They won‘t order from companies that provide a disappointing (or illegal) shipping experience. Investing in robust compliance processes will allow businesses to confidently, responsibly and ethically tap into that rapid growth.
Whether you‘re a consumer looking to send a celebratory gift or a business trying to grow your customer base, it‘s crucial to explore your options and only ship alcohol through legal, approved channels. That way, you can raise a toast to making spirits bright – without leaving yourself or the recipient with a nasty shipping hangover the next day.
