Big-money lobbyists move to end California's craft spirit delivery program

Legislation that let small California distilleries ship spirits to consumers is set to expire on Dec. 31, and powerful industry groups have spent over $1 million lobbying to block any permanent extension.

An emergency order issued by Gov. Gavin Newsom during COVID-19 allowed California craft distilleries to ship spirits directly to customers, a practice that has been temporarily renewed each year and is slated to end on Dec. 31. A coalition of the state's wine sector, large liquor wholesalers and the Teamsters union has spent more than $1 million lobbying legislators and contributed at least $11 million to political campaigns to prevent a permanent change.

Craft distillers, who spent roughly $54,000 on lobbying, say the opposition’s influence has derailed their proposals. Assemblymember Josh Hoover tried to amend his tasting-room bill to preserve direct shipping, but the amendment received no backing in the Senate and key committee chairs did not act on it. Critics claim the rule would benefit out-of-state firms and weaken controls on minors, while supporters argue it is a pandemic-era relief that should become permanent. With the legislative session ending on Aug. 31, the likelihood of extending the program appears slim.