The State of California just passed AB 1246, a direct-to-consumer (DtC) shipping bill. The bill extends temporary allowances for California distillers and also includes the ability for out-of-state craft distillers to ship into the state.
This California Distillers Association (CDA)-sponsored bill, which The American Craft Spirits Association (ACSA) has rallied support for since its introduction, will take effect on January 1, 2026, according to the ACSA.
Consumer Demand is Rising
The 2025 Direct-to-Consumer Spirits Shipping Report from Sovos ShipCompliant together with ACSA states that 84% of craft spirits drinkers want to purchase spirits via shipping, and 65% of Americans and 81% of regular craft spirits consumers want to see changes in current U.S. spirits shipping laws to allow for spirits to be shipped in more states than it is currently legal in. ACSA and CDA have long supported the notion that consumers should be able to shop for craft spirits in the same way they shop for other packaged goods, according to the ACSA.
“This is a major step forward for California craft distillers,” said Alex Villicana, president, CDA, in a news release. “Today, we toast to the result of strong collaboration and advocacy, which would not have been made possible without the leadership and support of Assemblyman Josh Hoover, who authored the bill.”
Margie A.S. Lehrman, CEO, ACSA added, “It’s no secret that 2025 has been the most challenging year yet for craft spirits producers, who are faced with the economic slowdown, the tariff war, an antiquated regulatory structure, and now, another government shutdown. This new law creates a much-needed opportunity for craft distillers to reach consumers who are demanding their products.”
Filling Consumer Demand
California joins at least nine other states and the District of Columbia allowing craft distilleries to ship to consumers in some form, according to the ACSA. These allowances provide important lifelines to distillers who need additional routes to market to fulfill consumer demand.
ACSA is now working closely with CDA and the California Alcoholic Beverage Control (ABC) to set forth the rules and regulations, establish any related fees and generate the forms to allow importation into the state, according to the ACSA.
AB 1246 includes several key provisions:
- Extends Direct-to-Consumer Shipping for in-state distillers – A one-year extension of shipping for California distillers who want to continue shipping within the state.
- Expands privileges to out-of-state distillers who obtain a permit. Effective January 1, 2026 – December 31, 2026.
- Permanently Increased Daily Sales Limit – The current 2.25 liter per person per day limit will increase to 4.5 liters per person per day.
- New License & Reporting Requirements – AB 1246 creates a new license category and reporting obligations, which are still in development and will be announced in the near future.
