Hard Cider DTC Shipping - A Niche You Need to Know!
The topic of shipping hard cider directly to consumers (DTC) is often met with confusion—and for good reason. First, many don’t even realize they can get hard cider delivered. And for those that do, the rules are murky and there aren’t a lot of clear, concise resources easily accessible. However, there are some fundamentals to keep in mind if you are a cidery and wish to ship directly to your customers.
Classification
First, it’s important to understand what is considered hard cider from a federal regulatory perspective. The Tobacco Tax and Trade Bureau (TTB) looks at several factors when classifying cider products, including alcohol content (ABV), the type of fruit used (fermented from apples), and carbonation levels. On their Cider Resources page, you can find several helpful links and definitions, including Cider FAQs. A federal Certificate of Label Approval (COLA) must be approved by TTB if the cider product is above 7% ABV. If below 7% ABV, the labels fall under FDA rules.
At the state level, in most cases cider products are treated like wine. However, there are many nuances, and a handful of states that treat cider like a beer product. And finally, a few states, such as South Dakota and Oregon, have unique rules.
A Mixture of DTC Rules
So if you are a cidery just getting started, or one expanding your DTC footprint, how do you best prepare to help ensure ongoing compliance? You can follow these tips as a general guideline, but always be sure to consult a beverage alcohol regulatory consultant for specific questions.
If your cider product has more than 7% alcohol by volume it is likely considered fruit wine at the federal level, consult TTB guidelines for specific requirements.
If you are shipping cider to a state that treats cider as a wine and allows wine to be shipped directly to consumers, it can be shipped DTC just as wine can. Consult the Wine Compliance Rules website (maintained by Wine Institute and Avalara) to learn all about how to get licensed, which rules apply, and which tax returns need to be filed in each state.
In states that treat cider-like beer, generally speaking direct shipping will not be allowed by cideries. The states that treat cider-like beer include Arkansas, Colorado, Georgia, Kansas, Maryland, and Oklahoma. UPS has a beer resource page with a few guidelines for shipping to states that allow DTC beer shipping.
For the remaining states, including Oregon (allows cider shipping under special classification) or South Dakota (specific prohibition for cider), cider rules depart from the normal wine and beer classifications. Check agency guidelines for specifics pertaining to your product.
The United States Association of Cider Makers also has a handy resources page, including a state by state survey table of cider classification and rules.
BEST PRACTICES TO STAY COMPLIANT
Understand the regulations in states to which you ship, and be sure to stay on top of changes and any deadlines. If you are shipping to more than 10-15 states, consider outsourcing or automation. The complexities of keeping up will quickly get overwhelming and you risk fines and penalties. More importantly, failure to keep your licenses up to date may impact your ability to sell your product or products in a state for an extended period of time, potentially losing significant revenue.
Use these resources as a guideline to get started. Reach out to a trusted advisor or state agency for questions. And the team at Avalara is always happy to help with any beverage alcohol compliance needs or questions. Learn more about our Avalara for Beverage Alcohol suite of products at https://avlr.co/2OmadWN or we can be reached at 877-855-9956.
