Texas Craft Brewers want to deliver “Beer-To-You”

Case Study: Texas Wine Industry Growth

In 2005 the Texas Legislature passed a law allowing wineries to ship their products directly to consumers. Today, the state of Texas ranks 2nd in direct wine sales volume with more than 600,000 cases shipped annually direct to wine enthusiasts’ doors. Texas’s wine industry has blossomed exponentially since the passage of this legislation, growing from around 40 wineries in 2005 to more than 400 wineries today, making Texas the 5th largest state for wine production in the United States and an industry with more than $20 billion in total economic impact. This growth is clearly tied to the safe, rational, and direct access to market Texas wineries enjoy.

The National Landscape

As of March 2022, the only states that provide clear, statutory authority for brewers to legally ship beer instate and across state borders are Alaska, Kentucky, Nebraska, New Hampshire, North Dakota, Ohio, Oregon, Vermont and Virginia, as well as the District of Columbia. While we see that the number of states with direct to consumer privileges is low, the demand is high with 92% of regular craft beer consumers saying they would regularly order direct to consumer beer shipments once a month or more.

Currently only 14.8% of adults have access to direct to consumer beer shipping while 96% of adults enjoy direct to consumer wine shipping. Texas says that it’s “Open for Business,” let’s demonstrate our commitment to this by leading the way on direct to consumer rights for breweries right here in the Lone Star State!

Access to Market

Texas breweries are increasingly looking to rural communities for homes as we see real estate costs in urban areas climb. Between new breweries opening and the expansion of existing breweries, there is great potential for industry growth in rural communities. Rural breweries, which often are modeled around being tourist destinations and selling almost all of their products directly to consumers, have greater barriers to market than their urban or suburban counterparts. Population density, strict distribution contracts, and shelf space limitations all provide difficult barriers to these small rural businesses getting their products into the hands of eager consumers.

Direct to Consumer shipping would allow them to reach craft beer fans across the state in a safe and sensible way that promotes growth for these rural businesses. Many of these breweries strongly support their communities by hiring local employees, giving back to the community, and drawing in tourism and economic growth. We as Texans can help these breweries and, in turn, the Texas communities they call home, by legalizing this important access to market.