by California has officially passed Assembly Bill 1246 (AB 1246), a major milestone for craft distillers both within the state and across the country. The new law, set to take effect on January 1, 2026, extends and expands California DtC (direct-to-consumer) shipping privileges, opening new sales channels for producers and more convenience for craft spirits enthusiasts.
A Step Forward for Craft Spirits Access
AB 1246 extends temporary shipping allowances for California distilleries, while also— for the first time—allowing out-of-state craft distillers to ship directly to California consumers with the proper permit. The bill represents a critical lifeline for small producers navigating what many consider one of the toughest business climates in modern history.
According to this 2025 Direct-to-Consumer Spirits Shipping Report by Sovos ShipCompliant, 84% of craft spirits drinkers want the ability to purchase spirits via shipping, and a majority of Americans support reforming outdated shipping laws. With the passage of AB 1246, California is taking a meaningful step toward aligning consumer demand with modern purchasing expectations.
Key Provisions of California DtC shipping (AB 1246)
The new law includes several important updates that distilleries should note:
- Extends DtC Shipping for California Distillers – Provides a one-year extension for in-state distilleries to continue shipping directly to consumers.
- New Privileges for Out-of-State Distillers – Starting January 1, 2026, qualified out-of-state distilleries may ship to California residents with the appropriate permit (valid through December 31, 2026).
- Increased Daily Sales Limit – The per-person purchase limit doubles from 2.25 liters to 4.5 liters per person per day.
- New Licensing & Reporting Requirements – AB 1246 establishes a new license type and reporting obligations, with details still in development and expected to be released by the California Department of Alcoholic Beverage Control (ABC).
Next Steps for California dtc shipping: Rulemaking, Fees, and Permits
Implementation of AB 1246 is not automatic. The California Alcoholic Beverage Control (ABC), in coordination with the California Distillers Association (CDA) and other industry stakeholders, will now begin drafting the rules, forms, and fee structures required to make the new shipping program operational.
That process will include defining eligibility criteria for out-of-state distillers, clarifying reporting timelines, and setting permit fees. Public comment periods are expected before the new framework takes effect, offering distilleries an opportunity to provide input on how these new provisions are applied.
Producers should begin preparing now by tracking regulatory updates from the ABC and industry organizations to ensure they can apply promptly once permits become available.
Strengthening a Challenged Industry
Craft distillers have faced a uniquely difficult year, contending with economic pressures, trade tariffs, and regulatory hurdles, all compounded by recent government uncertainty. This legislation helps level the playing field by expanding direct market access and giving smaller distilleries the ability to serve a broader consumer base.
California now joins at least nine other states and the District of Columbia in allowing some form of DtC shipping for spirits. These programs have proven vital for supporting small producers, providing alternative sales channels, and helping meet growing consumer demand for craft products.
What This Means for Distilleries
For California-based and out-of-state distilleries alike, AB 1246 marks a turning point. By expanding access and modernizing sales pathways, the law not only supports economic resilience but also reinforces the value of consumer choice in the craft spirits industry.
As implementation details are finalized in the coming months, you should stay informed, remain flexible, and prepare to engage with state regulators during the rulemaking process to ensure a smooth transition that takes full advantage of the new opportunities this law opens up when it takes effect in January 2026.
Don’t wait to prepare for what’s ahead. Our network of experienced industry consultants can help you understand the new requirements and identify ways your distillery can thrive under the new law. Get in touch with us today to start planning your next steps.
