The COVID-19 pandemic brought about significant changes in consumer behavior, not the least of which was a major shift towards online shopping and home delivery. One area where this trend was particularly pronounced was in the world of alcohol. With bars and restaurants closed and social distancing measures in place, many consumers turned to delivery to keep their favorite beverages flowing.
In fact, online alcohol sales exploded in 2020, growing by a whopping 243% year-over-year according to a report from IWSR Drinks Market Analysis. This surge in demand has put a spotlight on the complex web of laws and regulations that govern alcohol shipping in the United States.
One of the biggest players in the shipping game, FedEx, has particularly stringent policies when it comes to mailing alcohol. In this article, we‘ll take a deep dive into FedEx‘s alcohol shipping rules, explore the reasons behind them, and discuss some potential changes on the horizon.
FedEx‘s Current Alcohol Shipping Policies
Let‘s start with the basics: if you‘re an individual consumer, you cannot ship any type of alcohol via FedEx. This includes wine, beer, and spirits. FedEx‘s alcohol shipping policy is cut and dry on this point – no exceptions, no loopholes.
This blanket ban applies regardless of the amount of alcohol being shipped, the packaging used, or the destination. Even if you‘re trying to send a single bottle of wine as a gift to a state where alcohol delivery is perfectly legal, FedEx won‘t accept the package from an individual sender.
It‘s worth noting that FedEx isn‘t alone in this stance. UPS has a similar policy prohibiting alcohol shipments by individuals. The United States Postal Service (USPS) also bans alcohol in any amount from being mailed by individuals or businesses.
So why the hard line on consumer alcohol shipments? Much of it has to do with the complex history of alcohol regulation in the United States.
A Tangled Web of Alcohol Shipping Laws
The roots of today‘s alcohol shipping restrictions can be traced back to the repeal of Prohibition in 1933. The 21st Amendment, which ended America‘s failed experiment with forced temperance, included a key provision granting states primary authority over alcohol sales and distribution within their borders.
What emerged was a patchwork of state-level laws governing everything from the legal drinking age to licensing requirements for alcohol producers, distributors, and retailers. Crucially, these laws also dictate if and how alcohol can be shipped directly to consumers.
Fast forward to today, and the legal landscape around alcohol shipping is as varied as a craft brewery‘s tap list. Some states, like California and New York, have relatively permissive laws allowing wineries, breweries, and retailers to ship directly to consumers. Others, like Utah and Mississippi, prohibit nearly all forms of direct-to-consumer alcohol shipping.
Most states fall somewhere in the middle, with limited direct shipping allowed under certain conditions. Wineries often have more leeway than breweries and distilleries. Some states cap the amount of alcohol that can be shipped to an individual per month or year. Age verification requirements for deliveries are common.
Layered on top of this state-level patchwork are federal regulations around alcohol shipping. Any business engaged in interstate alcohol shipping must comply with the Federal Alcohol Administration Act, which requires them to obtain a permit from the Alcohol and Tobacco Tax and Trade Bureau (TTB).
For a carrier like FedEx that delivers to all 50 states, navigating this web of rules is undeniably complex. The risk of running afoul of state or federal law is high, as are the potential penalties. It‘s not hard to see why FedEx has opted for a blanket ban on consumer shipments rather than trying to untangle this mess parcel by parcel.
The Business of Booze: How Some Shippers Get a Pass
FedEx‘s no-alcohol policy may be firm for individual consumers, but there is a path forward for businesses looking to get in on the shipping action. Properly licensed alcohol producers, distributors, and retailers can apply to join FedEx‘s Alcohol Shipping Program.
Joining the program is no small undertaking. Businesses must first prove they have all the necessary federal and state permits to produce, distribute, and sell alcohol. This includes a federal basic permit from the TTB and any applicable state licenses.
Once approved, businesses must sign a FedEx Alcohol Shipping Agreement, which lays out a laundry list of rules and requirements. These include:
- Using FedEx-approved packaging materials
- Labeling boxes as containing alcohol
- Shipping only to states where direct-to-consumer delivery is legal
- Taking on liability for any issues that arise from improper packaging or labeling
Businesses must also use an approved FedEx shipping service for their alcohol deliveries. Options include FedEx Express, FedEx Ground, and FedEx Home Delivery. FedEx Freight can only be used for shipments between licensed wholesalers, dealers, distributors, manufacturers, or importers – not for deliveries to consumers.
Following these requirements to the letter is crucial. Violations can result in steep fines, legal action, and getting booted from FedEx‘s alcohol shipping program altogether.
Packaging Pitfalls: Keeping the Booze from Breaking
Even businesses that dot every i and cross every t in terms of licensing and compliance can run into trouble if their alcohol shipments are improperly packaged. A box full of broken glass and spilled wine is no good to anyone!
To help shippers avoid this fate, FedEx provides detailed guidelines for packaging alcohol safely and securely. The key points include:
- Using a sturdy outer box made of corrugated cardboard
- Wrapping each individual bottle in at least 2 inches of bubble wrap
- Placing wrapped bottles in molded pulp or corrugated dividers to prevent clinking
- Adding extra cushioning material to fill any empty space and prevent shifting
- Reinforcing the bottom of the box with extra tape or a corrugated pad
- Placing the shipping label on the top of the box and affixing "This Side Up" labels
FedEx also advises against using packing peanuts, which can settle and leave bottles unprotected, or paper void fill that compresses easily. Proper packaging can be the difference between a satisfied customer and a disappointing puddle of booze on the doorstep.
By the Numbers: The Big Business of Alcohol Delivery
The clamor for more flexible alcohol shipping regulations isn‘t just coming from thirsty consumers. Alcohol delivery has become big business in recent years, and it‘s only expected to grow.
Consider these eye-popping stats on the size and potential of the alcohol e-commerce market:
Sources: IWSR Drinks Market Analysis, Rabobank, Fact.MR
As more consumers embrace the convenience of ordering their favorite wine, beer, or spirits with the click of a button, the pressure is mounting on lawmakers and carriers to adapt. The potential economic impact is significant, especially for small craft producers who can expand their reach through direct-to-consumer shipping.
Challenges and Changes on the Horizon
Despite the undeniable growth potential of alcohol delivery, several key challenges remain. Perhaps the most pressing is the issue of age verification. Ensuring that alcohol is only delivered to legal-aged adults is a top priority for shippers, but in practice it can be tricky.
Some shippers and retailers use third-party ID verification services to check that recipients are of legal drinking age before the order is processed. Others require an adult signature upon delivery. But these systems aren‘t foolproof, and the consequences of an alcohol delivery getting into underage hands can be severe.
Another challenge is the sustainability of alcohol shipping. Glass bottles are heavy and fragile, making them more resource-intensive and emissions-heavy to transport than many other consumer goods. Some shippers are exploring alternative packaging options like lightweight plastic bottles, cans, or even bag-in-box solutions to help reduce their environmental impact.
Despite these challenges, the tide does seem to be turning towards a more streamlined and consistent approach to alcohol shipping regulations. Several states have recently updated their laws to allow for broader direct-to-consumer delivery:
- Kentucky, long known for its bourbon, began allowing distilleries to ship directly to consumers in 2020.
- New Jersey legalized direct-to-consumer shipments of wine and spirits in 2022.
- Florida removed its limit on the number of cases of wine that could be shipped to a consumer per year in 2021.
At the federal level, there‘s also a push for more standardization. The USPS Shipping Equity Act, introduced in Congress in 2021, would allow USPS to ship alcohol directly to consumers in states where it‘s permitted. While it has yet to pass, the bill has bipartisan support and is being championed by alcohol industry groups.
Even FedEx has shown some signs of potentially relaxing its strict no-alcohol policy for individual shippers. In 2020, the carrier launched a pilot program in a handful of states allowing wine shipments from licensed retailers (though still not from individual consumers).
The Last Drop
The world of alcohol shipping is a complex one, shaped by a tangled web of Prohibition-era laws, state-level regulations, and liability concerns. For now, FedEx‘s policy remains firm: no shipments of beer, wine, or spirits by individual consumers, period.
But for businesses willing to navigate the licensing requirements and comply with FedEx‘s stringent rules, there is a path forward. And as consumer demand for alcohol delivery grows, so too does the pressure on lawmakers and carriers to find safe, sustainable solutions.
The day may come when sending a bottle of bourbon is as simple as mailing a birthday card. But until then, the smartest bet for alcohol aficionados is to raise a glass to their favorite licensed retailer and let them handle the heavy lifting of shipping. Cheers!
