Njs Favorite Alcoholic Beverage Is Wine But Limits On Shipping Dampen Consumer Choice
State Senate Committee Hears Call for Reform
TRENTON Beer, wine, or liquor people have their top choices. New Jersey residents are no exception. In the Garden State, wine tops the list as the favorite alcoholic beverage. Its ironic, however, that wine tops the list, as New Jersey imposes strict limits on direct-to-consumer shipment from US wineries.
This limit, also known as the capacity cap, prohibits wineries producing over 106,000 cases of wine per year from shipping directly to consumers. This means that New Jerseyans cannot have 90% of domestic wine shipped directly to their home. For a state filled with wine lovers, this is certainly inconvenient.
U.S. winemakers and New Jersey consumers made the case to the State Senate Commerce Committee on June 16 that the arbitrary limit should be eliminated. Those testifying in favor of bills A1943/ S2683 said that eliminating the capacity cap would not only expand choice for New Jersey wine lovers, but also bring the state more revenue from sales/excise taxes and fees for shipping permits with no loss in business for New Jersey retailers.
Alan Sharp, a New Jersey consumer from Pennsauken, brought the conversation back to consumers: Its about consumer choice. Theres plenty of things out there that you cant get in the store.
Greg Kryder, Chief Financial Officer at Penrose Hill Winery in California, submitted several statements from the companys New Jersey customers:
Why Must I Select A State Before Shopping
We ship from multiple warehouses due to state laws, so PRICES AND SELECTION MAY VARY depending on which state you ship to PLEASE start shopping on Wine.com by first using the state drop-down menu to select the state where you want your items delivered. Once you choose your desired delivery state, our site will adjust the selection we offer to ensure you are only shown items that we can legally ship to that state. CHANGING STATES FROM YOUR CART MAY CHANGE YOUR ORDER! To avoid this unfortunate experience, it is best practice to empty your cart and select your state before you shop!
What Sales Tax Rates Are Applied To Dtc Shipments In Kentucky
Kentucky imposes a sales tax on all sales of wine into the state at a rate of 6%. In addition, Kentucky imposes a 10% “Wholesale Sales Tax” on DtC shipments of wine, which should be assessed against the wholesale price of the wines and can be collected from consumers like a sales tax but is remitted separately from the state’s sales tax. Small Farm Wineries are exempted from the Wholesale Sales Tax.
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Where Do We Ship
We ship wine to most states, though there are still some states that prohibit retailers from shipping wine in their state. We operate multiple warehouses around the country to comply with state laws. To determine if Wine.com ships to your state, use the drop-down menu at the top of the page to select your state. This will ensure you see correct inventory and pricing for your area. If we cannot ship to your state, you will see that on the red bar at the top of the page alerting you that your state prohibits delivery of wine from out-of-state retailers. We do, however, ship our non-wine items to all 50 states, including non-wine gift baskets, accessories and glassware.
Digital Wine Routes Revisited
When all is said and done, direct shipping regulation is to remain subject to state legislation. Some progress has been made to allow online retailers and wineries to ship without too much of a hassle. The important thing is that the wine shipping regulations are improving across the board.
You might be required to conduct some research and most online wine clubs and shops provide detailed information about their wine shipping rules. So theres no need to worry your wine collection is in jeopardy.
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Statewide Statutes And Enforcement
New Jersey’s laws and regulations regarding alcohol are overseen by the Department of Law and Public Safety‘s Division of Alcoholic Beverage Control , which is managed by the state’s Attorney General. The current director of the Alcohol Beverage Control division is Dave Rible. State and municipal laws, including those that regulate alcoholic drinks, apply in all territorial waters which includes inland rivers, lakes, and bays, and tidal waters up to three nautical miles from the New Jersey shoreline.
Starting in 1738, towns in New Jersey began issuing liquor licenses to tavern keepers. Before federal Prohibition in 1919, despite many state liquor statutes, the regulation of alcoholic drinks in New Jersey was almost exclusively local, with wide variations among municipalities. In 1933, after the repeal of Prohibition, the states were again permitted to regulate alcoholic drinks. Immediately upon the end of Prohibition in 1933, New Jersey instituted the Alcoholic Beverage Control Law, which established and granted rulemaking powers to the Division of Alcoholic Beverage Control. The law also established a three-tier alcohol distribution system whereby, with minor exceptions, alcohol manufacturers may only sell to wholesalers, who may only sell to retailers, who may only sell to customers.
Shipping Beer Liquor And Wine With Fedex
allowsFedEx Delivery Resources
FedEx alcohol shipment rules include:
- You have a FedEx account number
- You have signed an alcohol shipping agreement contact with FedEx through your account manager
- You must use inner packaging of EPS foam or molded fiber tray
- You must package the alcohol in the center of the shipment, away from the packages sides
- Your package must be deemed sturdy by FedEx
- You must clearly label the shipment and meet FedEx guidelines
- You must clearly label the package as containing alcohol
- You must receive a signature upon delivery from an adult that is 21 or older
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Is This A Control State For Wine
No license required to sell to licensed wholesalers
How much does the license cost?
Do I need to have money held in bond?
Is there a representative license?
Do I need to register products first?
Do I need to Post Prices?
Do I need to file my Distributor Agreements with the state?
Do I need to file my Territory Assignments with the state?
Are there rules on the exclusivity of territory or brand assignments?
Availability Of Retail Liquor Licenses
The number of Class C retail licenses for bars, restaurants, and liquor stores is limited by population and often by municipal ordinances. Licenses are typically obtained from existing licensees who choose to sell, or when a new license is offered as a town’s population grows. As a result, the price for a retail license is often prohibitively expensive. The sale of a new license is usually conducted by public auction. The intense competition can benefit a town by generating several hundred thousand dollars of revenue from the highest bidder. A 2006 license auction in Cherry Hill, New Jersey set the state record at $1.5 million.
Supermarkets, convenience stores, and gas stations in New Jersey rarely sell alcoholic beverages because state law prohibits any person or corporation from possessing more than two retail distribution licenses. While licenses for bars, restaurants and liquor stores are limited, other retail licenses are not. Class C licenses can be granted without limit for common carriers , private clubs with a minimum of 60 members, hotels with at least one-hundred rooms, and theatres with at least 1,000 seats.
Selecting A Delivery Date
We offer date-specific deliveries for most items purchased. A calendar with all available delivery dates will be presented to you after you enter your shipping address. You can select a delivery date up to six months out by clicking on the calendar arrow to move forward months. Note that we cannot select a specific block of time for your delivery, only a specific date. The carrier will make three delivery attempts before the item is returned to our warehouse.
These Wine Of The Month Clubs Ship Wine To New Jersey
Our wine of the month club ratings system looks at quality-to-price ratio, shipping costs, and unique wine club features. While not all wine clubs can send wine to all states, all of these wine subscriptions and wine club giftscan be shipped to New Jersey. We do our best to make sure this list is accurate, but as shipping laws change, so do the shipping policies of subscription services.
Note: A dry community is one in which sales of alcoholic beverages are prohibited. New Jersey has at least 30 municipalities that are completely dry . Get more info about NJ wine delivery rules and regulations.
FYI: I find great wine deals so you dont have to. To keep me on the hunt, I earn a commission when you buy wine based on my recommendations.
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No One Is Generally At Home During The Day To Sign For My Wine Delivery What Can I Do
1. Select a Special Delivery Service from FedEx:
FedEx Date Certain Home Delivery: Delivers wine to a residence on the specific day you wish, Tuesday-Saturday, between 9 a.m. and 8 p.m. . $5 Add to order
FedEx Evening Home Delivery: Delivers wine to your home between 5 p.m. and 8 p.m., Tuesday-Saturday evenings by FedEx Home Delivery service. $10 Add to order
FedEx Appointment Home Delivery: Delivers wine to a residence at a specific date and time, Tuesday-Saturday, between 9 a.m. and 8 p.m. Fedex will call the phone number on your order to arrange an appointment with you. $20 Add to order
to learn more or to add a special delivery service to your order.
2. Have the wine shipped to your workplace.
3. Have the wine shipped to an adult friend or neighbor, either at their home or business.
We Are Having Extreme Weather Conditions Will My Delivery Be Safe
Total Wine & More may hold a wine shipment during extremely hot weather to protect the quality of items purchased. These occurrences are most likely during summer months in southwestern states. When we temporarily hold your shipment, well notify you by email. Well also post a message on TotalWine.com so shoppers know new orders may be delayed.
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Is Product Registration Required For Dtc Shippers In Connecticut
Yes, all brands being sold into Connecticut must by registered with the state prior to sale. Brand registrations cost $200 per brand and are valid for three years. Any brands that have previously been registered for distribution through Connecticut wholesalers do not need to be re-registered for DtC shipping and vice versa.
Dram Shop Liability And Social Host Liability
Bars and restaurants are considered strictly liable for their patrons’ behavior, and liquor licenses can be suspended or revoked if a customer engages in illegal activity after drinking. New Jersey law recognizes both dram shop liability and social host liability, wherein the server of alcohol to visibly intoxicated persons or minors is liable if that person then causes death or injury to a third party in an alcohol-related automobile collision or other accident. In order to mitigate liability, the Division of Alcoholic Beverage Control grants licensed establishments the right to exclude any patron for any reason, but warns business against violating civil rights laws.
While the courts in New Jersey allow actions based on dram shop liability or social host liability, they will instruct a jury to consider the intoxicated person’s negligence under the doctrine of comparative negligence. Licensed establishments and social hosts may be liable for drunk driving accidents, assaults, falls, and other injuries and property damage caused by a customer, but are not liable for behavior which is unforeseeable , nor are they liable if they only served food or non-alcoholic beverages to a drunk patron. Dram shop and social host litigation may involve both compensatory and punitive damages. There is a 2-year statute of limitations for such lawsuits, but the time limit may be extended if the victim is a juvenile.
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How Much Does A Dtc Shipping License Cost In Indiana
An Indiana Direct Wine Seller’s Permit cost varies depending on the amount of sales made by the shipper in a year. Fees start at $100 for shipping under 9,000 liters per year, with an additional $100 for each increment of 9,000 liters shipped per year to the state, capping at $500 for shipping up to 45,000 liters per year.
Direct Shipping To Consumers
Until 2004, New Jersey permitted in-state wineries to directly ship products to in-state customers. The state did not allow out-of-state producers to ship to New Jersey residents or permit New Jersey wineries to ship to out-of-state customers. This practice was declared unconstitutional by the U.S. Supreme Court in 2005 in a case from Michigan. New Jersey’s statute was subsequently struck down by the Third Circuit Court of Appeals in 2010 because such limitations were held to violate the Interstate Commerce Clause of the U.S. Constitution.
On 17 January 2012, New Jersey GovernorChris Christie signed into law a bill that legalized direct shipping from wineries to consumers, and permits New Jersey wineries to open as many as 15 offsite retail sales outlets in the state. The law allows wineries that make less than 250,000 gallons of wine annually, which includes all of New Jersey’s wineries, to ship up to 12 cases of wine to per year to any person over 21 in New Jersey or any other state that allows wine shipments. Because this prohibits 90% of wine made in the United States, but does not affect New Jersey’s small wineries, proponents of the law fear that this section of the law will be struck down as unconstitutional. The U.S. Court of Appeals for the First Circuit had struck down a similar limit in Massachusetts in 2008 in light of the United States Supreme Court decision addressing direct shipping laws a few years earlier.
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What Happens If No One Is At Home To Sign For The Package When Ups Or Fedex Arrives
They will leave a slip of paper at your door saying that they attempted to deliver. These notices generally have a phone number to call and/or the address of their local depot. In most cases, you can arrange to pick the package up there. If they do not hear from you, they will attempt to delivery it again. After 3 unsuccessful attempts, the wine will be returned to us. In that case, we’re sorry but we’ll need to charge you to ship it again.
How To Ship Wine: General Overview
First of all, the most important thing to keep in mind is that its illegal for one individual to ship any amount of wine to another person through the mail in the United States, regardless of where you live or whether you try the U.S. Postal Service, UPS, or FedEx.
That doesnt mean you cant send wine to someone but you cant just stuff it in a box and slap a few stamps on it. Unless youre willing to take a big risk and break the law, to ship wine you need to buy it from a company whos certified to deliver it. The good news is, plenty of companies are licensed to ship wine to most states.
Depending on the quantity youre sending and where its going, there could be additional hurdles to overcome. For instance, if you want to send wine to a friend in Oklahoma, youre out of luck: The Sooner State doesnt allow it, and you might be looking at a felony if you get caught trying.
While the law is mostly the same in Delaware, theres one important loophole: If youre a resident of Delaware and youre visiting a winery in a different state, you can send yourself back a few bottles.
The strictest laws, by far, are found in Utah, Oklahoma, Mississippi, Alabama, Kentucky, and Delaware. Pay particularly close attention to the rules if youre sending wine to those states. An updated master list of all the state law nuances can be found by searching the alcohol statutes over at The National Conference of State Legislatures website.
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What Additional Considerations Are There For Shipping Dtc In Indiana
Wineries may not engage in both three-tier distribution and DtC shipping in Indiana at the same time. Indiana will not issue a Direct Wine Seller’s Permit to any winery that is actively distributing wines to Indiana wholesalers, or has distributed wine to an Indiana wholesaler within the 120 days prior to applying for a DtC license.
How To Ship Alcohol Internationally
Importing and exporting alcohol across country borders presents even more challenges. Youll now need to meet state, city, and country laws, as well as be familiar with exporting and importing laws.
Youll need to ensure that the distributor sending the shipment has the correct permits or the US government can seize your shipment. Youll also need to be aware of taxes and duties for international beer, spirit, and wine imports.
We recommend not managing international alcohol shipping yourself instead, work with reliable third-party retailers and compliance companies to ship beer, liquor, and wine orders.
Stay on top of the latest alcohol trends and regulations
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How To Mail Alcohol Out
When you cross state lines, the shipment of alcohol becomes more difficult. That its because you now must meet the requirements and regulations in both the state youre shipping from and the state youre shipping to.
There is a loophole that helps consumers ship beer, liquor, and wine to other states if that other state permits the shipment of alcohol to consumers. Instead of shipping a bottle from your state to their state, simply find a retailer based in the state youre shipping to and order it from that retailer. That way the retailer wont need to cross state lines and only meet the rules of their states alcohol regulation board.
Do you own a brewery, distillery, or winery? Learn how to serve a food menu with 2ndKitchen.