Amazon and Alcohol Shipping

  With the Pandemic in 2020 Amazon put out a proposal to modernize alcohol shipping rules that would allow them to get into the business. Wholesalers everywhere screamed until they had heart attacks. Nothing much has happened in the four years since this plan became public, but that doesn't mean Amazon has given up on the idea. More likely, they're working behind the scenes to get this moving.

Background

  The U.S. alcohol system consists of three tiers -- production (wineries, distilleries, breweries), distributors (wholesalers or the middle men), and retail (stores). Someone thought it would be best if no single entity could do two or three of these, like the Mob controlled alcohol during Prohibition. So the Mob became the wholesale tier between producers and sellers. That worked well, huh?

  Each state has their own rules. Each state's distributors send plenty of cash to the legislatures to keep the gravy train rolling. Why pick on the distributors? Lack of value added for the money they collect off every beer, wine, and spirit sold in the country.

  Many states now allow some shipping direct from out-of-state wineries or even retailers to your home. Even that has licensing costs and rules that differ by state. 

  Still, most alcohol sold in your location is controlled by what a wholesaler has on hand, often based on who gave them the best deal. Are any palms being greased? Oh yeah, they get caught occasionally.

Who would gain by a change

  Amazon was asking for changes to allow them access to delivery to the states. The only thing standing in the way would be the middle men and women because they stand to lose business. 

  Why should you care? Prices might come down as the wholesaler is no longer taking a piece. More likely, you'd see a huge increase in choices. It won't be up to that wholesaler to decide what you can have access to, so you could get anything available in the country. Some states are more restrictive than other as to what you can find.

  It would be nice to order a case of mixed wine from several producers on Amazon and have it show up a few days later.

  There are plenty of things Amazon has to figure out besides relaxing the state shipping laws, like collection of the all-important taxes. Temperature control is mandatory, as you can't have your wine freeze or cook while in a warehouse or in transit. Federal law says someone over 21 must be home to receive the package.

  There's a lot here to figure out, plus getting the feds and the states to cooperate. If Amazon thinks there's enough money to be made, they are big enough to push it through. Whether you support Amazon or not, you'd see benefits.