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With the help of the Kentucky Distillers Association, a Kentucky bill allowing direct-to-consumer distilled spirits and wine shipments was signed into law on April 13th, 2018. HB 400 permits tourists visiting state distilleries and wineries to purchase a souvenir bottle and have it shipped directly to the purchaser’s home. HB 400 amended KRS 243.0305 to allow distilleries to ship product directly to consumers and allows for consumer participation in monthly club memberships or subscriptions. Now, consumers visiting Kentucky distilleries may purchase 4.5 liters of whiskey per person, per day and elect to have the whiskey shipped directly to their homes. Sales made after January 1, 2021 will allow for consumers to purchase and ship 9 liters of whiskey per person, per day. Additionally, whiskey fans may now participate in a subscription service or bottle of the month club and receive up to nine liters of distilled spirits delivered directly to their home annually. KRS 243.155 was also amended to allow small farm wineries to sell up to 4 cases of wine per person per day for shipment directly to the purchaser. Small farm wineries may also participate in monthly club memberships or wine subscription services where members may have up to 1 case of wine per month shipped directly to their residence. All Deliveries must be made by a licensed common carrier authorized to deliver or ship distilled spirits and wine to the destination state (remember to see individual state shipping laws on the permissibility of DTC shipping in that…

The Illinois Liquor Control Commission (ILCC) is meeting today to discuss next steps regarding illegal shipments of alcohol into the state from out-of-state retailers, according to the Chicago Sun-Times. This is follow-up from the December ILCC cease and desist letters sent to almost 1,000 liquor stores around the country.  “The illegal direct shipment of alcohol into the state of Illinois is something that the Illinois Liquor Control Commission takes very seriously,” noted a statement from the ILCC quoted in the Sun-Times. “The cease and desist letters are a continuation of enforcement efforts by the Illinois Liquor Control Commission as we look to halt the shipment of alcoholic liquor from unlicensed sources into Illinois.” The issue is not only direct shipments to consumers, but also Illinois liquor stores receiving alcohol from out-of-state. According to the Sun-Times, one store maintained a “front door register” for normal retail business and a “back door register” for sales to Illinois liquor stores. The result: lost tax revenue for the state.

The world of home delivery services for alcohol has been growing steadily. One South Florida based delivery service, Klink, has recently been acquired by delivery.com, a delivery service company based in New York that delivers food, groceries, laundry, other products, and now alcohol. Klink, founded in 2013, was one of the earlier providers of on-demand alcohol deliveries direct to consumers. The company which operates on both the iOs and Android platforms is available in Miami, Washington DC, and Dallas. Initially the startup began at the University of Central Florida when two of the founders were students there. The initial plan was to target college campuses, but Klink quickly changed its strategy and started targeting larger metropolitan centers. Delivery.com has been looking to expand into the same markets as Klink and offer alcohol delivery service as a compliment to its other available delivery items and services. Jeffrey Nadel, CEO of Klink who spoke with the Miami Herald said, “we are confident this will be a huge value-add for both our customers – who will be able to order food along with their beer, wine and spirits purchases – and our retail partners, who will have access to a wealth of new customers.” Nadel added, K”link customers have been clamoring for an offering that combines booze and food almost since Klink’s launch.” The transition and merging of both companies will be completed in the coming weeks. The exact terms of the deal have not been disclosed. By: Oren Cytrynbaum