California Craft Distiller DTC Privileges Extended One Year

AB 1088 (Rubio, Chapter 829, Statutes of 2023) was signed into law on October 13, 2023. This bill temporarily extends the operation of provisions in law related to direct-to-consumer shipping privileges of California craft distillers. The Legislature enacted the original temporary authorization and this extension for the purpose of providing limited relief to manufacturers recovering from pandemic-related impacts.

Since September 29, 2022, the holder of a craft distillers license (Type 74) has been temporarily authorized to directly ship distilled spirits manufactured or produced by the licensee at its premises if done in compliance with Business and Professions Code section 23504.5. This section of law was previously scheduled to repeal January 1, 2024. AB 1088 has extended the repeal date of this section until January 1, 2025. As a result, type 74 licensees remain temporarily authorized to directly ship distilled spirits manufactured or produced by the licensee at its premises to California consumers only if all of the following occur:

1. The amount shipped must not exceed the equivalent of 2.25 liters in any combination of prepackaged containers per day per consumer and shall be solely for the consumer’s personal use and not for resale.
2. The licensed craft distiller must maintain adequate records of the shipments and provide those records to the department upon request.
3. The licensed craft distiller must require the common carrier to obtain the signature of any individual 21 years of age or older before delivering any distilled spirits shipped to an individual in this state.
4. The containers in which the distilled spirits are shipped must be conspicuously labeled with the words: “Contains Alcohol: Signature of person age 21 years or older required for delivery.”