On May 13, Alabama Gov. Kay Ivey signed House Bill 437, which allows wine producers to ship directly to Alabama residents starting on August 1.
Along with approving direct-to-consumer (DTC) shipments, the legislation maintains “the uniform three-tie system of control over the sale, purchase, taxation, transportation, manufacture, consumption, and possession of alcoholic beverages in the state.”
The new Alabama law:
- Authorizes DTC licensees to ship wine to residents for personal use in limited circumstances
- Creates a licensing procedure for direct wine shippers and wine fulfillment centers (aka, fulfillment houses)
- Establishes reporting requirements
- Regulates franchise agreements between wine suppliers and wholesalers
- Requires licensed importers and wine manufacturers to enter into exclusive franchise agreements with wholesalers
Mississippi and Utah are the only two states that have yet to approve DTC wine shipments for off-site sales.