COVID-19 and Changes in the Beverage Alcohol Industry


This post is by Alex Koral from Blog – Sovos ShipCompliant


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It seems as if, in a few short weeks, the entire world has been turned upside down. In response to the COVID-19 crisis, society has adopted emergency measures to stem the tide of the virus, with companies shifting to remote work or shuttering wholly, and people adjusting to social distancing or more extreme quarantine measures.

No sector of the economy has been unaffected by the crisis, though each faces unique challenges. For the beverage alcohol industry, the effects have ranged from the extreme to the manageable. 

Every tier in the beverage alcohol industry has faced an impact from the crisis. Retailers have to contend with social distancing measures that prevent consumers from gathering in restaurants and bars, or even from entering a package store. Distributors are dealing with the general strain on delivery services, which means responding to both increased demand for remote fulfillment and considering the greater danger …

Why You Should Attend the 2020 Wine Summit


This post is by Delaney McDonald from Blog – Sovos ShipCompliant


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Sovos ShipCompliant continues to monitor news about the evolving spread of coronavirus, or COVID-19. At this time, we are planning to move forward with the 2020 Wine Summit. Should we need to cancel or postpone the 2020 Wine Summit, we will notify registrants as soon as possible and you’ll receive a full refund if cancelled.

The annual Sovos ShipCompliant Wine Summit is an great opportunity to meet and discuss realities within the wine industry with colleagues.This summit is a chance to learn new methods and strategies on managing compliance and the digital customer experience. 

Get unique insights from some of our expert speakers. 

Keren Eldad, a.k.a Coach Keren, is a business coach and trusted advisor to industry-leading executives and entrepreneurs. Get first-hand insights and inspiration during Coach Keren’s session “Change with Enthusiasm: The Four Strategies To Create a Proactive, Engaged Culture.” 

Rob …

BevAlc Roundup | Utah to Allow “Wine Club” Sales, Coronavirus Closures, and the SVB DTC Survey is Open


This post is by Alex Koral from Blog – Sovos ShipCompliant


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The coronavirus has moved from being a panic to a pandemic over the last few weeks, leading to mass closures and social distancing, and capturing all of our attention. The news is replete with stories of cancelled events and ways to cope with the reality of a modern plague. Heavily dependent on tourism and entertainment, the beverage alcohol industry has also been caught up with coronavirus news, with everyone trying to determine how best to respond to the crisis and mitigate damaging effects.

If you’re staying inside this week (and we hope you’re keeping safe!), we still have the Roundup for you. This week, a highly anticipated lawsuit regarding DtC shipping of wine by out-of-state retailers in Michigan was heard by the Sixth Circuit Court of Appeals. Then, how coronavirus is affecting the beverage alcohol industry, and predictions of an upcoming bourbon barrel shortage.

One of the main effects …

Nominate Your Winery for Our Annual Customer Awards


This post is by Delaney McDonald from Blog – Sovos ShipCompliant


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The annual Sovos ShipCompliant Wine Summit is quickly approaching and it’s time to nominate your winery for the Vinners, our customer awards before submissions close on May 1.

If you are a winery and a Sovos ShipCompliant customer you are eligible to submit a nomination. You don’t need to attend the Wine Summit to be eligible, but that is where we’ll be announcing the winners.

There are four nomination categories.

  • Have you gotten a lot of attention and appreciation for one of your wines’ labels? Extra proud of a wine label’s artwork? Nominate yourself for Most Captivating Label.
  • Have you been working on building the aesthetic of your tasting room? Have you cultivated a warm and engaging culture in your tasting room? Nominate yourself for Most Engaging Tasting Room Experience.
  • Are you impressed with your wine club’s growth? Did you have a creative or innovative promotion plan for your wine …

Wine Retailers Can Ship to 15 States, D.C.


This post is by Alex Koral from Blog – Sovos ShipCompliant


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In August, Missouri repealed rules that previously permitted limited direct to consumer (DtC) sales of wine by licensed retailers. This rule change highlighted the complexities surrounding retailer DtC sales. This is the second installation of a three-part blog series to remove some of the confusion these complexities can cause. Today, we discuss where retailer DtC is still permitted, as well as the compliance requirements imposed on retailers making these sales.

Basic Retailer DtC Rules

As of this publication, 15 states and the District of Columbia permit out-of-state retailers to sell directly to their residents, and fulfill those orders through a common carrier. Ten of these states require the retailer to receive a license, and comply with the rules of that license; the other three operate under a “reciprocal” process, described below. Except for selling to residents of these 13 states and D.C., it is illegal for a retailer …

Seller Beware: Use Your Own License


This post is by Alex Koral from Blog – Sovos ShipCompliant


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This last January, in partnership with Wine Vines Analytics, we published the latest of our annual Direct-to-Consumer (DtC) Wine Shipping reports, showcasing a market that readily reaches $3 billion in annual revenue. Yet throughout the tremendous growth we have seen in the DtC wine shipping market over the last decade and more, at least one thing has remained constant: the challenges of getting and remaining compliant with the multitude of state rules. 

Over the years, Sovos ShipCompliant has remained committed to enabling DtC wine shippers to handle their compliance needs; nevertheless, we have never been shy to acknowledge that it is not easy. With the difficulty inherent in knowing, tracking and following the myriad rules, including licensing requirements, shipping volume limits, and tax collection and reporting, it is no wonder that some DtC wine shippers will leap at any offer that promises to eliminate those barriers. 

It …

BevAlc Roundup | Loopholes in Wine Tariffs, Coronavirus and Wine, and Understanding Your Distributors


This post is by Alex Koral from Blog – Sovos ShipCompliant


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These last few weeks have seen headlines dominated by news of the Coronavirus outbreak, to which the beverage alcohol industry (pardon me) is not immune. There are plenty of helpful stories out there, such as the impact of travel fears and harms to tourist communities that contagion panic will spread. And plenty of pretty bad stories as well—we feel compelled to remind everyone that you can’t get Coronavirus from Corona beer. 

But if you feel a need to stay home, we can offer you the Roundup to tide you over (plus maybe a wink-and-grin reminder that alcohol is antiseptic). This week we look at a couple of lawsuits from Mississippi and California that were decided, with rulings that reinforce the status quo when it comes to interstate distribution and shipping of alcohol. Then, getting an accurate measure of the effect of hard seltzer on sales of other product types. …

An Analyst’s Insights into 2020 Direct-to-Consumer Wine Shipping Report


This post is by Delaney McDonald from Blog – Sovos ShipCompliant


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Sovos ShipCompliant and Wines Vines Analytics recently released the 2020 Direct-to-Consumer Wine Shipping Report and we asked Tom Wark of Wark Communications, a company specializing in beverage industry communications, to give us some of his insights and takeaways from this year’s report. Tom has been involved in the creation of the DtC report for many years, and offers a unique and seasoned perspective. 

What statistic or data point did you find most surprising from this year’s report?

TW: I thought the slower growth in the Napa County region was particularly interesting. Napa dominates DtC Shipping. I see its slower growth as a combination of factors including a maturing region, there being no new states to open in the previous 12 months to drive growth, and also a general slowdown in purchasing from Napa wineries. If I were other regions that have matured in their direct sales, I’d want …

BevAlc Roundup | Tariffs Continue to Affect Bev Alc Industry, the Grape Glut, and When Tasting Room Experiences Go Wrong


This post is by Alex Koral from Blog – Sovos ShipCompliant


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In the last few weeks, we’ve participated at several large industry events, including the annual DTC Symposium, the Unified Wine & Grape Symposium, and the Oregon Wine Symposium. These have all been wonderful occasions to connect with our friends and partners in the industry, but did you know that Sovos ShipCompliant also puts on conferences to showcase regulatory and market trends affecting the beverage alcohol industry? Currently, we are getting ready for the return of our Beverage Alcohol Summit, which will take place in New York City on March 24, where we will be joined by industry experts talking about need-to-know updates affecting all suppliers and wholesalers. And then, our annual Wine Summit is coming up on May 28 in Napa. To find more information on and register for these events, look on our website.

Just in case you can’t make it to one of our events, we still …

The Evolution of a More Competitive DtC Market


This post is by Andrew Adams from Blog – Sovos ShipCompliant


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When I joined Wines & Vines magazine in 2011, I received an in-depth introduction to the world of direct-to-consumer wine shipments through the magazine’s collaboration with ShipCompliant.

Back then the channel still seemed new, relatively novel, and while sales were strong in a few key markets, the overall growth of the segment was hobbled by several large states being closed to direct shipments. White wines accounted for a tiny share of overall shipments and the time of year had a huge impact on total shipment volumes.

Now in 2020, with the release of the tenth annual DtC Wine Shipping Report, we’ve seen Chardonnay grow to account for 9% of all shipments by volume and rosé shipments have exploded, growing more than 10% by volume in 2019. I didn’t even think about rosé back when I first started writing about DtC shipments. Shipment volume during the summer has also increased year …

Co-opetition Channels: The Future of Wine Industry Growth


This post is by Delaney McDonald from Blog – Sovos ShipCompliant


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Direct to consumer (DtC) sales are viewed as a direct competition to traditional three-tier wine sales, but is this really the case? 

At a transaction level, individual sales do present competition. Yet, at a macro level, the two channels support each other by increasing consumer demand and driving industry growth.  

Bridging the availability gap

The three-tier system and DtC shipping are separate channels representing different missions and shouldn’t be viewed as traditional competitors. Both are necessary to satisfy consumer needs and increase market demand. In fact, these two entities can complement one another with cross promotional activities that benefit the entire industry.  

The three-tier system relies on distributors. Large distributors wield tremendous influence, and they inherently focus on established brands and may overlook smaller wineries. This limits the ability of those wineries to get their products to a national market. DtC sales can supplement the lack of …

3 Reasons to Attend the 2020 Sovos ShipCompliant Beverage Alcohol Summit


This post is by Delaney McDonald from Blog – Sovos ShipCompliant


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Curious as to what you might find at the Sovos ShipCompliant Beverage Alcohol Summit in New York City? This one-day event will bring together beverage alcohol producers, suppliers, importers, industry experts and regulatory officials to discuss challenges and solutions that arise in the three-tier system and across the industry. 

Here are three reasons we’re excited to attend the 2020 Beverage Alcohol Summit:

  • Hear two keynote addresses from two experts.
    • Jim Watson is a senior analyst at Rabobank’s research group, covering the American beverage alcohol sector. He studies consumer and industry trends that are shaping the beverage industry, giving insight into what is to come.
    • Andy Hovancik, CEO at Sovos, has over 15 years of experience with regulatory and compliance software companies. Andy will share his perspective on how Sovos is on a mission to solve tax for good so businesses prosper and communities thrive.
  • Stay up to date on …

BevAlc Roundup | The 2020 DtC Wine Shipping Report is Here, How Wineries Can Succeed With DtC Sales, and a Record Whisky Auction


This post is by Alex Koral from Blog – Sovos ShipCompliant


Click here to view on the original site: Original Post




Every year, Sovos ShipCompliant is proud to release an annual report of the direct-to-consumer (DtC) wine shipping market in conjunction with our partner, Wines Vines Analytics. The 2020 report is now out and available for you to download—free! 2019 was an interesting year for beverage alcohol sales broadly, and many of those overarching concerns—decreased overall consumption, shifting product preferences by consumers—also seemed to shape a DtC market that saw slower growth than in previous years. Nevertheless, the DtC wine shipping market remains strong, with lots of room for future growth. 

You can read all about these findings in our report and our overview linked below. In the rest of the Roundup, we also look at continued threats from tariffs despite the reported “truce” between the U.S. and France. Then, more reflections on the strength of the DtC market and why New York is such a large producer …

6 Highlights from the 2020 Direct-to-Consumer Wine Shipping Report


This post is by Delaney McDonald from Blog – Sovos ShipCompliant


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This January, Sovos ShipCompliant released the 2020 Direct-to-Consumer (DtC) Wine Shipping Report with our partner, Wines Vines Analytics. The year 2020 marks the 10th annual DtC report, which features exclusive data and insights on the state of the industry not tracked or reported on anywhere else. With wine shipments to consumers reaching a record $3.2 billion in 2019, all eyes are on the continued yet slowing growth of the maturing DtC market. Let’s dive into the numbers and what they mean for 2020 and beyond.

How we get the report numbers

We’re frequently asked about how we gather and analyze the data for the report, so here is a peek inside the process. The Direct-to-Consumer Wine Shipping Report takes shipment data from over 1,000 U.S. wineries’ shipments to consumers each month, totaling more than 20 million shipments over the course of the year. 

As we gather …

BevAlc Roundup | California Proposes Expanding Bottle Bill Rules, Opportunity in a Slowing-Growth Market, and Looking Back on Prohibition


This post is by Alex Koral from Blog – Sovos ShipCompliant


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2020 marks 100 years since the start of the Prohibition Era (the Volstead Act, which implemented the 18th Amendment, and prohibited the sale and production of any product with more than 0.5 percent ABV, came into effect on January 17, 1920). As such, there has been a lot of coverage in the media of this dubious anniversary, some of it pointing out the problems of Prohibition and moralizing human behavior in general, and others wondering whether we’ve swung too far against the idea of temperance. To paraphrase Spinoza, we certainly don’t want to be doomed to repeat the past (hint, hint, neo-Prohibitionists); and studying history is an invaluable (and fun!) way to learn those lessons. But we also should recognize that we face a different world and society than existed 100 years ago (climate change, for one, is new; and even things that at times rhyme with the …

New Year, New Data: The 2020 DtC Wine Shipping Report To Be Released This Month


This post is by Delaney McDonald from Blog – Sovos ShipCompliant


Click here to view on the original site: Original Post




This month, Sovos ShipCompliant is set to release the annual Direct-to-Consumer (DtC) Wine Shipping Report with our partners Wines Vines Analytics, based on 2019 data. Soon after, we’ll be sponsoring and presenting an exclusive first look at the report during the Direct-to- Consumer Wine Symposium near the end of January.

Here is what you need to know about the report, along with some key findings from 2019 to keep in mind for the upcoming 2020 report and where the new DtC report findings will be showcased at forthcoming industry events. 

About the 2020 Direct-to-Consumer Wine Shipping Report

The Direct-to-Consumer Wine Shipping report is a one-of-a-kind industry report, presenting data not tracked or reported anywhere else. Sovos ShipCompliant and Wines Vines Analytics have been collaborating since 2011 on the direct-to-consumer channel’s exclusive shipping report, with the 2020 report marking the tenth edition.This unique industry report gives detailed insights on …

BevAlc Roundup | Congress Extends Federal Alcohol Tax Relief, Wine Prices to Continue Correction in 2020, and Hard Seltzer is Here to Stay


This post is by Alex Koral from Blog – Sovos ShipCompliant


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Here we are with the final Roundup of 2019, and more than that, the final Roundup of the twenty-teens. And what an eventful decade it has been! Back in 2010, Sovos ShipCompliant was still a hardscrabble startup focused on supporting the development of the DtC wine shipping market. Since that time DtC wine shipping has grown more than three-fold into a $3 billion annual market. Meanwhile ShipCompliant also expanded to support more product types and sales platforms, including building out the Product Registration Online tool that has helped improve brand/label registration processes in more than a dozen states. In 2015, we merged with Sovos Compliance to help develop one of the largest and most comprehensive business-to-government compliance support companies in the world. 

Any extended period of time will see its share of good times and bad, triumphs and tribulations. But through everything, we have aimed to keep our focus …

Sovos ShipCompliant Unveils New Website and Branding


This post is by Delaney McDonald from Blog – Sovos ShipCompliant


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Sovos ShipCompliant has a new home online and a new name.

The brand new Sovos ShipCompliant website is now online. It offers easier navigation, deeper descriptions of product offerings and an improved look and feel. Along with those new wrinkles, the new site also features the latest industry observations in the Sovos ShipCompliant blog, as well as an updated webinar calendar and a collection of links to press articles. 

Beyond the new website, the ShipCompliant product family also has a new identity, Sovos ShipCompliant. Part of Sovos since 2015, ShipCompliant was previously known as ShipCompliant by Sovos. The new name showcases that  ShipCompliant products are an integral part of the overall Sovos platform. 

A shared vision within Sovos

Worldwide, Sovos supports more than 7,000 customers. Some 2,000 of those customers use Sovos ShipCompliant. Across Sovos, our team shares a vision for improving the lives of business leaders and …

2019 ShipCompliant End-Of-Year Webinar


This post is by Delaney McDonald from Blog – Sovos ShipCompliant


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In our end-of-year webinar we covered the news and changes that encompassed the beverage alcohol industry in 2019. We discussed industry growth, the latest trends like hard seltzer and canned wine, and recent regulatory updates like the Tennessee Wine & Spirits v. Thomas decision. 

Industry growth through ShipCompliant data

2019 was a busy year for direct-to-consumer shipping. Our thousands of customers shipped almost 9 million packages and generated and filed 360,000 reports. We focused on protecting and helping grow the DtC channel. As 2020 nears, we are looking at opportunities to expand services for distributors and importers and keeping an eye on retail DtC and DtC shipping for cider, beer and spirits.

Regulatory Changes in 2019

There were a lot of regulatory updates in 2019 that could affect beverage alcohol producers and DtC shippers. Here are some highlights we covered: 

  • CA: CCPA, which will protect customer data is going …

BevAlc Roundup | Time Running Out to Extend Reduced Federal Excise Taxes, Beer Shipments Fall to Decade Low in 2019, and Is Molasses the Secret to Good Rum


This post is by Alex Koral from Blog – Sovos ShipCompliant


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December 5 was the 86th anniversary of Repeal Day, the day the 21st Amendment was enacted, restoring the legal market for producing and selling alcohol in the United States. While the many decades between then and now have been very fruitful for producers, distributors, and retailers of alcohol and the satisfied consumers they serve, the industry would do well to remember that there are still efforts to denigrate and tarnish beverage alcohol, even some trying to bring back Prohibition. Therefore, let’s take this anniversary to remind ourselves of the sense of responsibility that undergirds our industry. That responsibility reinforces the notion that enjoyment and safety are not enemies. It acknowledges that alcohol is enjoyable and fun and a part of human identity going back millennia; but also that alcohol is an intoxicant and can have pernicious effects if misused. As such, it forces us to realize that the freedom to …