Direct Delivery Debate: Addressing WSWA's Misguided Stance
A critical look at alcohol sales strategies and the case for direct sales
The WSWA usually gets one thing right in their surveys, adults are concerned about minors’ access of alcohol, and more needs to be done to stop minors from having access. This is where their logic ends. I am still at a loss as to why the WSWA continues to bash on direct sales, it is a drop in the bucket to the overall wholesale market, but it is a vital point to discovery of new products and producers upon which their members thrive and it does allow small craft producers to build their American dream.
Their arguments especially lose ground when they target manufacturer direct sales and delivery. It's well-established that online sales, employing pre-purchase age verification software, consistently achieve a 100% compliance record, blocking all attempts at minors purchasing. Additionally, the involvement of licensed shipping companies ensures that alcohol products are delivered safely and in compliance with regulations during the last mile. This makes direct shipping not just safe, but exceptionally secure. Moreover, direct sales have emerged as a crucial lifeline for thousands of small, craft alcohol producers who find themselves excluded from the traditional three-tier market system.
This brings us to WSWA's latest survey, which seems to be less about factual representation and more about spreading fear and misinformation, wrongly suggesting that direct sales contribute to minors’ access of alcohol. The overlooked detail here is the three-tier system’s brick and mortar compliance rate: a concerning 90%. This means that out of every 10 retail transactions, one involves a minor being able to purchase alcohol, a statistic WSWA ignores and refuses to address. If an online vendor exhibited compliance rates similar to those of brick-and-mortar stores, they would likely face immediate closure, whereas physical stores routinely only receive minor penalties.
The survey reveals a humorous yet insightful aspect of the misinformation surrounding it: a majority of adults believe that regulatory standards for brick and mortar and DTC (direct-to-consumer) sales should be equally stringent. Imagine this scenario in a physical store setting: customers would need to fill out forms providing personal details like their name, address, email, and date of birth, along with specifics of the products and quantities they are buying. Furthermore, they would face scrutiny to ensure compliance with a monthly purchase limit – for instance, a maximum of 1.5L of spirits per transaction or one case of wine a month – followed by an electronic ID verification. While this scenario seems almost ludicrous, it highlights the significant disparity in the enforcement of regulations across different sales channels and points to the extent of misinformation among the survey participants.
While the process of online age verification might be cumbersome, it's a minor hurdle when considering the access it grants to an exceptional variety of products. This expansive selection, ranging from unusual to premium and rare finds, is a distinctive advantage of direct delivery sales. These unique and sought-after products, often unavailable in traditional retail settings, or can be limited by the selective distribution practices of wholesalers. This makes DTC not just a secure and effective option, but a gateway to exclusive and desirable items that consumers can't access elsewhere.
What I’d like to see from the WSWA is for them to pivot towards using their resources and expertise to aid the industry in bringing more products to market, rather than impeding market progress.
Until the WSWA stops spreading misinformation in the market, advocacy for fair and sensible regulations in direct sales is vital, and national organizations like the Craft Wine Association, American Distilling Institute, Distilled Spirits Council of the United States, American Craft Spirits Association and others play a key role in this. These groups work towards legislative support for our agricultural businesses and offer viable common sense direct sales models.
What’s needed from the WSWA and Morning Consult is a full disclosure of the survey. Without transparency in their methodology and data, this survey and any going forward are at risk of being perceived as nothing more than manufactured propaganda. This call for transparency is not just a challenge, but is a necessity to ensure that the debate around alcohol sales is grounded in fact, not fiction. The industry deserves a balanced and fair discussion, one that truly considers the benefits of direct sales and addresses the real issues of underage access without resorting to scare tactics.