Why the fight for legal, regulated direct shipping remains vital
Why does the fight for winery-to-consumer direct shipping remain vital? Great success has been achieved since the Free the Grapes! campaign was established in 1998. The map of the United States representing freedom for direct shipping has changed; from a patchwork of closed states and those with confusing reciprocity laws, to one where only two states still ban direct shipping. However, the fight is not over to open those states and improve conditions in others which still carry significant restrictions to winery-to-consumer direct shipping.
DTC Channel = Growth
Not only is it an issue of consumer choice and convenience, in an age when we are increasingly reliant on receiving goods sent directly to our homes, but it is vital to the success of America’s smaller, premium wineries. The direct-to-consumer (DTC) channel is a key opportunity for sales and growth for these wineries, and this hinges on the ability to ship to wine-loving consumers across the country.
Silicon Valley Bank recently released its 2025 Direct-to-Consumer Wine Report, with some key statistics to note. It is no secret that wineries have been struggling with various challenges, from changing consumption habits, declining visitation, and broader economic factors. Yet, the report showed that those wineries where DTC represents a larger share of the business are profitable. The SVB report demonstrated that wineries with 70% of their business in DTC areas (tasting room, wine clubs, etc.) are profitable, compared to those where DTC represents only about 40% of their business.
Smaller wineries rely on winery-to-consumer direct shipping
This is particularly true for small wineries, as DTC sales typically account for a higher percentage of total revenue than larger wineries, which may have greater representation in wholesale distribution. Wine clubs are the top area of the direct-to-consumer channel for these smaller wineries, surpassing tasting rooms. And if there are impediments to shipping to those wine club members or potential new customers? All of that success can evaporate. The current status in the majority of states has proven that direct shipping and wholesale distribution can co-exist. Legal, regulated wine shipping can complement and augment the three-tier system. Everyone wins, and consumers can enjoy true choice in the wines that they love.
All of the statistics mentioned here are from the 2025 Silicon Valley Bank Direct-to-Consumer Wine Report. You can watch the full virtual event here.
