November 29, 2023

Timely News re Alaska’s New DTC License


Many alcoholic beverage manufacturers have been looking forward to getting Alaska’s new DTC license, which goes into effect January 1, 2024. Due to both regulatory and technical issues, we are anticipating significant delays in obtaining that license, causing out-of-state producers to lose the ability to ship direct to Alaska consumers for the foreseeable future.

Currently, anyone can ship “a reasonable amount” of alcoholic beverages to Alaska residents—no license or reporting required. That privilege ends January 1, when it is replaced by the new AK Manufacturer Direct Shipping License.

We have been closely tracking the availability of the AK DTC license. We have learned that the state’s online licensing system does not yet accept applications from out-of-state companies, and it is not clear when the system will take an application for this license.

In addition, the state has adopted regulations governing DTC shipping that impose requirements that are impractical for any out-of-state company to fulfill. The California Wine Institute is working with state officials to resolve the issues and rewrite the new DTC regulations. That effort is expected to take several months.

Consumers in Alaska are probably unaware of these obstacles. Producers with customers there may wish to reach out to them and give them an opportunity to order wine during December, while it is still legal to ship to them.

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The Digest of Wine & Spirits Law
The Digest of Wine & Spirits Law