I wanted to walk you through some important news that just came across my desk about California's craft liquor delivery market, because it affects how small producers operate and ultimately what options consumers have in our region.
According to CalMatters Housing, craft distillers in California have had the ability to ship spirits directly to customers for about six years now, starting with pandemic-era rules that Governor Newsom put in place. That temporary permission has been extended a couple of times since then, but the current extension runs out at the end of this year. Unless lawmakers act in the next few weeks, that direct-to-consumer shipping window closes for good.
The real story here is about the power of lobbying. CalMatters reports that major wine industry groups, corporate alcohol wholesalers and distributors, and the Teamsters union have spent serious money and political capital to block legislation that would have made this direct-shipping permanent for craft distillers, defined as producers making up to a certain volume each year. These groups spent over a million dollars on lobbying efforts this year alone, and they've donated more than ten times that amount to California politicians over the years. Meanwhile, the craft distillers themselves spent just a fraction of that trying to protect their business model.
An assemblymember from Folsom named Josh Hoover tried to amend his bill this year to let these small distillers continue shipping directly to customers, but behind-the-scenes pressure killed the effort. The opponents claim they're not trying to crush small competitors, but rather that they're concerned about consumer safety and preventing alcohol sales to minors. The Teamsters say they'd support direct shipping if distillers used established shipping companies with actual employees instead. The wine industry notes it's been shipping directly for decades, but industry representatives seem concerned about fairness if other alcohol producers get similar rights.
What I am seeing locally is that this matters for East Bay and Bay Area craft producers who've built their customer base on these delivery services over the past several years. If this shuts down on January first, those small distillery owners lose a significant sales channel, and our customers lose convenient access to local products. This is a good reminder of how Sacramento works behind closed doors, where well-funded interests can shape policy quietly while smaller businesses just don't have the resources to compete in that arena.
