How Do I Legally Sell My Bev Alc Products Online and Across State Lines?
Selling alcohol online and across state lines is an exciting opportunity for distilleries and RTD (ready-to-drink) cocktail brands to expand their customer base and scale revenue. Unlike wine, which benefits from more established direct-to-consumer (DTC) pathways, spirits face stricter regulations, making compliance for online alcohol sales a major challenge. That’s where having the right knowledge—and the right partners—makes all the difference.
In my experience leading compliance strategy at BBG, I’ve seen firsthand how the smallest misstep can result in steep penalties or delayed growth. But, with the right approach, you can open new sales channels safely and legally—and platforms such as Big Thirst, Cask & Barrel, and LibDib simplify the process.
Read on to learn more about selling alcohol online legally across state lines.
Understanding DTC Alcohol Shipping Regulations for Spirits and RTD Cocktails
Knowing DTC alcohol shipping regulations inside and out is the foundation of selling legally.
Why Are Spirits Regulations More Complex?
State laws treat spirits differently than wine for several reasons:
Spirits carry higher taxes and stricter state control, meaning compliance requirements are often more intricate.
Many states require separate permits for spirits shipping, even for small volumes.
Unlike wine, which can ship to most states, spirits face outright bans or strict volume limits in several regions.
For example, while wine shipments are permitted in over 40 states, spirits can only be shipped DTC to a handful of states—such as Kentucky, Nebraska, New Hampshire, Colorado, and Ohio—and even these states impose licensing conditions. Despite their popularity, RTD cocktails often fall under the same restrictions as hard spirits.
Key Compliance Requirements
To ship alcohol online legally, you need to cover the following bases:
Get state-specific licenses and permits: Each state has unique rules for shipping spirits or RTD beverages. Tools like ShipCompliant or Big Thirst can help you track licensing requirements.
Verify customer age: Use certified age-verification systems to confirm that buyers are over 21 years old.
Comply with state reporting rules: Some states require monthly or quarterly reports detailing sales volumes and tax payments.
Understand volume limits: Restrictions vary widely, with some states capping shipments at a few liters per month.
Secure shipping carriers that meet legal requirements: Not all carriers will ship alcohol, and those that do must comply with both federal and state laws.
Monitor restricted states: Know which regions outright ban DTC spirits sales and where compliance efforts are too costly to justify.
Use a compliance tool such as LibDib or ShipCompliant to stay up-to-date with changing regulations. Licensing and reporting requirements can evolve, and failure to comply often results in hefty penalties.
Common Challenges in Interstate Alcohol Sales for Spirits
Expanding sales across state lines sounds promising, but distilleries and RTD brands often face hurdles that require careful planning. Below, we take a look at the most common challenges and how to overcome them.
Licensing Complexities
Each state requires different licenses for DTC alcohol shipments. If you’re shipping to multiple states, managing these licenses can feel like a full-time job.
To overcome it:
Focus on a few high-value states to start, where DTC sales are allowed and demand is strong.
Leverage compliance partners like LibDib or Big Thirst to simplify licensing and track renewals.
Prioritize states with favorable regulatory climates to build a foundation before expanding further.
Volume Restrictions
Many states limit the amount of spirits or RTD beverages you can ship directly to consumers. These volume caps can be restrictive, particularly for growing brands.
To overcome it:
Offer curated product bundles that maximize revenue while adhering to shipment limits.
Explore alternative fulfillment centers that can support regional sales while staying compliant.
Develop subscription models for DTC customers to encourage regular but compliant order sizes.
State-Specific Tax Obligations
Interstate alcohol shipping laws and taxation are a maze that can quickly become a logistical nightmare without the right tools.
To overcome it:
Automate tax calculations using platforms like Big Thirst, which integrates tax reporting into the sales process.
Work with compliance advisors to audit your tax processes and avoid underpayments.
Maintain detailed records of state-by-state sales to streamline annual tax filings.
Distribution Network Gaps
For many smaller brands, DTC shipping is an opportunity to bypass traditional distributors. However, limited fulfillment networks can slow growth.
To overcome it:
Partner with platforms like Cask & Barrel to expand your distribution footprint.
Build regional fulfillment hubs to streamline shipping and reduce delivery times.
Evaluate third-party logistics (3PL) providers that specialize in alcohol shipping to reach underserved markets efficiently.
Key takeaway: Understanding and addressing these challenges early lets you expand DTC sales with confidence while minimizing legal and operational risks.
How Trusted Platforms Can Simplify Compliance for Spirits and RTD Cocktails
Staying compliant in a constantly shifting regulatory landscape can be exhausting when you’re managing DTC alcohol sales across multiple states. Fortunately, Big Thirst, LibDib, and Cask & Barrel simplify the complex, state-specific rules so you can focus on growing your brand.
Big Thirst
Big Thirst offers tailored solutions for craft distilleries and RTD brands by automating regulatory compliance and streamlining operations. Their platform is particularly effective for businesses handling multi-state DTC sales.
With Big Thirst, you can manage the licenses required for every state you ship to, complete with renewal alerts to avoid costly lapses.
Sales tax and excise taxes are calculated and reported seamlessly, removing the burden of manual data entry. Big Thirst integrates directly with ecommerce platforms to capture accurate state-specific tax data for every transaction.
The platform supports inventory tracking across regions, helping distilleries avoid overselling in states with volume caps.
LibDib
LibDib (Liberation Distribution) stands out as a flexible digital distribution platform that connects smaller spirits producers and RTD brands with retailers and DTC channels while handling compliance concerns in the background.
LibDib helps you legally bypass traditional wholesale models by connecting directly to licensed retailers and on-premise accounts while remaining compliant.
The platform automates age verification, shipment tracking, required reporting, address validation, and compliance monitoring for DTC transactions. It’s particularly useful for navigating states with highly specific shipping rules.
LibDib’s analytics dashboard provides insights into sales volume, licensing gaps, and emerging market opportunities, enabling brands to expand strategically.
Cask & Barrel
Cask & Barrel focuses on solving logistical challenges for boutique distilleries and RTD producers aiming to expand regionally while remaining fully compliant with local laws.
Working in tandem with regional third-party logistics (3PL) partners simplifies shipping and helps brands meet state-specific carrier and delivery requirements.
State-mandated reporting, including excise taxes and sales summaries, is consolidated into clear dashboards to help distilleries maintain accurate records.
Steps to Expand Your Online Sales Safely
To grow your DTC spirits or RTD business online, you need a clear, actionable plan that prioritizes compliance and operational efficiency.
Take a step-by-step approach:
Secure the right permits: Research state-specific licenses for every market you plan to target.
Invest in age verification tools: Implement systems that verify buyers’ ages at checkout to meet legal requirements.
Track state laws and volume limits: Stay updated on evolving DTC regulations and shipment caps. Set up automated alerts for changes.
Partner with compliance platforms: Platforms like LibDib and Big Thirst offer seamless compliance solutions and simplify multistate operations.
Streamline logistics: Develop fulfillment partnerships that reduce shipping times and improve the customer experience. Regional hubs are particularly effective for fast-growing brands.
Audit your tax reporting: Automate tax calculations and reporting to avoid underpayment or penalties. Regular compliance audits help identify and address risks early.
Educate your team: Train your sales and logistics teams on compliance best practices for consistent adherence across all operations.
Monitor customer feedback: Use DTC sales data and feedback to improve shipping processes, product offerings, and regional strategies.
I advise clients to shoot for compliance before growth. Expansion without a firm handle on licensing, taxes, and shipping restrictions can derail your progress.
Simplify Selling Alcohol Online Legally With BBG
Selling alcohol legally online is a powerful way to scale your brand, but the path is far from simple.
At BBG, we specialize in helping distilleries and RTD brands navigate every hurdle. With our deep expertise in finance, accounting, operations, and alcohol beverage compliance, we partner with you to simplify the complexities of DTC sales so you can focus on delivering exceptional products to your customers.
Ready to grow your brand’s reach while staying fully compliant?
Author: Nicole Elizabeth
Nicole Elizabeth is a seasoned expert in Alcoholic Beverage Compliance with over a decade of experience in the wine industry. As the Compliance Team Lead at BBG, she advises wineries on navigating complex regulatory landscapes. Nicole’s previous roles as an Alcohol Beverage Paralegal at Dickenson Peatman & Fogarty and Compliance Specialist at Rodney Strong Vineyards have given her deep expertise in licensing, reporting, and compliance issues. With a background in Wine Studies and Marketing from Sonoma State University, Nicole brings a comprehensive understanding of both the regulatory and business aspects of the wine industry.
