Delaware lawmakers uncorking renewed efforts to pass direct-to-home wine sales

With people scrambling for holiday gifts, Delaware legislators are again pushing for direct-to-home wine sales, something 98% of Americans have access to – and First Staters do not.

“In an age of commerce where nearly anything can be quickly delivered to your doorstep, Delaware, Utah, and Mississippi stubbornly remain the only three states prohibiting the direct shipment of wine to consumers—an option available to the 97.8% of Americans living in other states,” read a statement Wednesday from the Republican Caucus of the state’s House of Representatives. 

Here were some bills – coming from both sides of the aisle – that were discussed in the General Assembly this past year that pertain to direct-to-consumer alcohol shipments:

• House Bill 259, sponsored by Rep. Jeff Spiegelman, R-Townsend-Clayton, would allow farm breweries, microbreweries, and craft distilleries to conduct direct-to-consumer sales of wine, beer, spirits, mead, and hard cider. It would also allow state liquor stores to conduct home deliveries while requiring the licensing and training of delivery workers, and mandating that those receiving the order are identified and at least 21 years old.
• House Bill 235, sponsored by Rep. Pete Schwartzkopf, D-Rehoboth Beach, allows any individual or business with an alcoholic liquor license to sell at 8 a.m., an hour earlier than the current law of 9 a.m. This bill has been signed into law.
• House Bill 221, sponsored by Rep. Mike Smith, R-Pike Creek Valley,  would remove the requirements for alcoholic liquor to be sold with a purchase of food that costs at least ten dollars or to be in ice cream containing up to 10% alcohol by volume. It also would allow restaurants and brewery-pubs to stop selling full meals to patrons before the current requirement of 9 p.m.
• House Bill 222, sponsored by Smith, would mandate that the Delaware Alcoholic Beverage Control commissioner directs an investigation to the Division of Alcohol and Tobacco Enforcement for an independent investigation after 25 complaints from residents who reside within one mile of a licensed establishment that sells alcohol. The complaints would need to be for violating statutory or regulatory requirements. If an investigation finds the complaint credible and a hearing is necessary, the signatories of the petition will also be provided notice of the hearing and allowed to appear and provide an impact statement.
• House Bill 266, sponsored by Smith, would amend a technicality and would allow the state alcohol commissioner to declare a business including live music with or without the use of PA systems, and to include external speakers for “piped-in” or pre-recorded music as a “substantive change” to an alcohol license application.

Wine bill in the works

Spiegelman and Rep. Mike Smith, R-Pike Creek Valley, will introduce bills in the 153rd General Assembly to give Delawareans the option of ordering wine and having it delivered to their homes by UPS, FedEx, or some other carrier.

“Our bill would…allow consumers to get the products they want,” Spiegelman said.  “They are demanding this service, and we’re planning on giving it to them.”

RELATED: Another alcohol bill kicks off this year’s General Assembly

The legislation is intended to fill a niche in product availability and consumer choice. 

Wine Business Monthly reports that the United States is home to more than 11,600 wineries, and according to the Wines Vines Analytics Winery database, in 2022, 49% of all U.S. wineries produced fewer than 1,000 cases annually, while an additional 33% were producing fewer than 5,000 cases. 

By contrast, the largest American producer, E & J Gallo Winery, sells 100 million cases annually. 

“More than 80% of wineries are small-scale producers, too small for broad distribution,” Smith said. “Our proposal would allow these craft wineries to ship directly to consumers. It’s not uncommon for people to discover a unique wine while on vacation or visiting friends, but if they want to purchase a bottle for themselves, it’s nearly impossible if it comes from a small producer.”

Opponents have argued that direct-to-consumer (DTC) wine sales would undermine retail sales. 

But there’s no credible evidence to support this assertion, even as the number of states allowing DTC wine shipments has steadily increased since 2005 from 26 to 47. In fact, U.S. retail wine sales have improved yearly over that period, rising from $38.5 billion in 2005 to $106.3 billion in 2023.

“We’re not reinventing the wheel here,” Smith said. “Our bill mirrors the laws already operating in dozens of other states.”