Distillers in Kentucky can now sell and ship direct to consumers bypassing the three tier system without any transfer going to a wholesaler.
Hopefully this will act as a catalyst for all the remaining states to do the same.
With this new law the distillery can now sell their own products direct to the consumer! Under House Bill 415, KY distilleries will be able to ship spirits directly to consumers in reciprocal states through online and telephone orders, a privilege that the wine industry has enjoyed for decades.
The bill was passed on March 26th, and becomes law on April 8, 2021.
Kentucky-based producers can ship products to other states if those states have reciprocal laws that allow products from out-of-state manufacturers to be shipped to its citizens.
Out-of-state producers can ship to Kentucky consumers if their respective state laws permit them to ship.
Kentucky retailers can no longer ship products, which is a change from HB 400 in 2018. The retailers asked for their shipping privileges to be removed because they are concerned about corporate giants like large, big-box retailers taking over the retail market. However, Kentucky retailers may take orders online or by phone and deliver to Kentucky consumers or contract with third-party companies to deliver for them.
HB 415 creates new quantity limits for what can be shipped out-of-state and what can be shipped into Kentucky. Each producer is allowed to ship:
- 10 liters of distilled spirits, per consumer, per month
- 10 cases of wine, per consumer, per month
- 10 cases of beer, per consumer, per month
NOTE: There is no change for Kentucky distillery gift shops sales. That limit remains at 4.5 liters per person, per day, until January 1, 2021, when the limit increases to 9 liters per person, per day and unfortunately those products must still be sold to and then bought back from a distributor.