Give Paso distilleries a break. Let them ship directly to customers — just like wineries do

Wineries have been allowed to ship directly to their customers for years, but due to some weird and outdated legislation, that option hasn’t been available to distilleries.

That double standard changed when COVID hit, and state and local governments relaxed regulations to help food and drink establishments survive.

California temporarily allowed distilleries to ship gin, vodka, whiskey and other liquors directly to their customers. They’re covered by the same restrictions that apply to wine industry — including the requirement that an adult be present to receive the shipment.

The easing of the rule was set to expire on Jan. 1 — setting off alarms for California’s distillers — but at the last minute it was extended until March 31. Assemblyman Jordan Cunningham and state Sen. John Laird, whose districts include Paso Robles, were among those who signed a letter in support of the extension.

Still, distillers are looking for a permanent fix; anything less will hurt the Central Coast’s burgeoning craft distillery industry.

“For smaller startups like myself, the direct-to-consumer portion is important. ... (It) gives us the ability to build up the following,” said Alex Villicana, co-owner of Re:Find Distillery in Paso Robles.

Without the ability to ship to consumers, distillers are limited to selling through distributors and to customers who visit their tasting rooms. However, there’s a limit on how much each customer can purchase at distillery tasting rooms — three 750ml bottles.

“... If you are buying spirits for a wedding, you will need to visit that distillery multiple times in order to purchase enough for your celebration,” the Re:Find website points out.

Not only that, walk-in business isn’t what it once was on account of the pandemic. Early on, tasting rooms shut down entirely and then reopened with limits on capacity.

Tasting rooms also have been hampered by the same issue affecting so many businesses — worker shortages.

Villicana says his room business is down 20% since pre-pandemic days, and he’s been counting on direct-to-consumer shipments to help make up the difference.

Like others in his industry, he’s pushing for passage of Senate Bill 620, a bill that would allow spirits to be shipped directly to customers on a permanent basis. As currently written, it would apply to licensed distilleries in California, as well as to licensed importers and to out-of-state distilleries with direct shippers permits.

Leveling the playing field is only fair.

While the manufacture of spirits is a small industry in California, it’s growing rapidly.

There are around a dozen craft distilleries just in San Luis Obispo County, with the majority in Paso Robles, and more than 150 throughout the state. But those businesses cannot succeed unless they have a practical way to market to their customers.

Yes, there are concerns about alcohol falling into the hands of underage drinkers, but if that hasn’t been a problem with wine shipments, why would it be any different for high-end craft spirits?

Let’s be honest, high school kids looking to score some booze for a party won’t by buying $48 bottles of cucumber-flavored vodka.

If alcohol shipments to minors were to become a problem, it would be time to revisit regulations for all types.

But don’t penalize distillers by continuing to enforce legislation that dates back to the 1930s.

Business models have changed dramatically since then; today’s consumers are accustomed to being able to have just about anything they want — from cat food to cannabis — delivered straight to their doors.

We strongly urge the California Legislature to give distillers the same opportunities as winemakers by passing SB 620.

This story was originally published January 5, 2022 at 5:30 AM.