Merkley, colleague introduce bill to end Prohibition-era ban on Postal Service shipping of alcoholic drinks

WASHINGTON (KTVZ) – Senators Jeff Merkley (D-OR) and Kirsten Gillibrand (D-NY) launched an effort Tuesday to end the Prohibition-era ban that prevents the U.S. Postal Service from shipping alcoholic beverages to consumers.

Currently, private shipping companies like FedEx can ship alcohol, but the USPS cannot. The Senators’ USPS Shipping Equity Act allows USPS to ship alcoholic beverages directly from licensed producers and retailers to consumers over the age of 21, in accordance with state and local shipping regulations.

The bill gives USPS two years to develop regulations and implement the law, ensuring the agency is ready to safely deliver alcoholic beverages to adult consumers, with appropriate identification checks in place.

“All American businesses deserve the same access to the U.S. Postal Service when it comes to delivering their products to their consumers—and we all have a vested interest in making sure the USPS thrives,” said Merkley. 

“Finally eliminating a Prohibition-era ban on shipping wine, beer, and spirits through the mail will ensure that wineries, breweries, and distillers in Oregon and throughout America have another option to consider when it comes to selling their world-class products, while also helping to boost the competitiveness of the USPS.”

“Upstate New York is home to some of the country’s finest wineries, breweries, and distilleries, and they deserve to be able to ship their products to their loyal customers nationwide,” said Gillibrand. “I’m proud to cosponsor this legislation to eliminate the outdated restriction on the USPS’ ability to ship alcoholic beverages and look forward to getting it passed.”

The market for direct-to-consumer shipping continues to soar with e-commerce sales expected to reach $40 billion by 2027, but breweries, distilleries, wineries, and other producers are confined by limited shipping options to get their products to customers. The USPS Shipping Equity Act would level the playing field for alcohol shipping and establish a new source of revenue for USPS. This bill is estimated to generate $190 million annually for the Postal Service.

It would also expand access to consumers for direct-to-consumer shipments. While USPS ships to every household in the nation, private carriers do not, especially in rural areas, leaving many Americans without access to direct-to-consumer alcohol shipments.

You can read a summary of the USPS Shipping Equity Act by clicking here, and the full text of the legislation by clicking here. The bill is co-sponsored by Senators Peter Welch (D-VT) and Patty Murray (D-WA). Representatives Dan Newhouse (R-WA) and Jennifer Wexton (D-VA) introduced similar legislation in the House of Representatives.

The USPS Shipping Equity Act is endorsed by the American Postal Workers Union, National Association of Letter Carriers AFL-CIO, Brewers Association for Small and Independent Craft Brewers, the American Craft Spirits Association, Distilled Spirits Council, National Association of Postal Supervisors, National Postal Mail Handlers Union, National Rural Letter Carriers’ Association (NRLCA), WineAmerica, and National Active and Retired Federal Employees Association (NARFE).

“NALC applauds Sen. Merkley for introducing the USPS Shipping Equity Act. This bill is an important step toward meeting the growing needs of our customers while generating revenue for the Postal Service, expanding the agency’s service opportunities, and supporting small businesses nationwide,” said National Association of Letter Carriers President Brian L. Renfroe.

“Small and independent breweries produce hundreds of styles of beer, unfortunately due to issues like distributor consolidation and SKU reductions, there are fewer opportunities to get their products to consumers. Direct-to-consumer shipping is a critical way for these small businesses to make their products accessible to the legal drinking age adults who wish to purchase them. Eleven states and Washington, D.C. already allow breweries to ship beer directly to consumers, the USPS Shipping Equity Act is commonsense legislation that provides those breweries with another way to access the market,” said Bob Pease, President and CEO of the Brewers Association.

“For rural and small distillers, access to multiple shipping options is essential to our success and future growth.  Using the USPS to ship spirits to customers, distillery visitors, and potential distributors will be a great help for our craft industry,” said Margie A.S. Lehrman, CEO of the American Craft Spirits Association. 

“The NRLCA thanks Senator Merkley for introducing the USPS Shipping Equity Act, legislation that would end an archaic Prohibition-era ban that prevents the Postal Service from delivering alcoholic beverages to consumers who are over the age of 21.  Allowing the Postal Service to compete in this growing market will open up a new revenue source not currently available to the Postal Service.  The USPS Shipping Equity Act is not only good for the small businesses who will be able to take advantage of using the Postal Service, but we’re confident if given the chance, and acting within the state and local delivery laws, the Postal Service can be successful in the direct-to-consumer alcohol shipping business,” said NRLCA President Don Maston.