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DTC Shipping Law Passed In Kentucky

by | Apr 18, 2018 | alcohol beverage law, Delivery, Distribution, DTC, Three Tier System, Tied House, Trade Practice

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 state). The package must be conspicuously labeled “Alcohol Beverages, Adult Signature Required” and carriers are under an obligation to inspect government issued I.D. to ensure that the receiver is 21 or over. The bill also includes an emergency clause allowing it to go into effect immediately instead of taking effect after the standard 90-day period.

Full amendment text can be found here.

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The foregoing was prepared as general information. It is not meant to provide legal advice granting any specific matter and should not be acted upon without professional counsel. If you have questions or require additional information regarding these or other related matters, please contact Malkin Law, P.A. This material may be considered attorney advertising under certain rules of professional conduct.