Just days after an amendment to allow shipping of alcoholic beverages via the United States Postal Service died, the legislation was resurrected as the “USPS Shipping Equity Act” and introduced into Congress on Monday.
U.S. Rep. Jackie Speier (D-CA), who has long been a proponent of alcohol delivery via the USPS, introduced the measure along with Rep. Dan Newhouse (R-WA) and 17 co-sponsors in the House. A companion bill was introduced in the U.S. Senate by Sen. Jeff Merkley (D-OR).
Under the USPS Shipping Equity Act, the Postal Service — in accordance with state and local shipping regulations — would be allowed to ship alcoholic beverages from licensed producers and retailers to consumers aged 21 and up. If passed, the USPS would have two years to develop regulations, prepare its carriers and implement the law.
Lawmakers supporting the legislation said it would offer alcoholic beverage producers another shipping option beyond private carriers UPS and FedEx, while also providing the USPS with a much-needed source of revenue in the “tens of millions of dollars” in the future. The USPS’s net losses for the 2020 fiscal year totaled $9.2 billion, $363 million more than it lost in fiscal year 2019.
Supporters added that allowing the federal agency to ship alcoholic beverages would benefit rural consumers who are not served by private carriers.
In a press release, Speier, Newhouse and Merkley each called on Congress to lift the “Prohibition-era ban” on shipping of alcoholic beverages through the USPS.
“In most states, private carriers such as FedEx and UPS are already delivering alcoholic beverages,” Speier said. “It makes no sense to create a competitive disadvantage for the USPS by barring them from these kinds of shipments, especially given the Postal Service’s dire financial condition.”
“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,” Merkley added.
The USPS Shipping Equity Act’s list of supporters includes:
- The American Postal Workers Union,
- American Craft Spirits Association,
- Brewers Association,
- California State Association of Letter Carriers,
- Distilled Spirits Council,
- National Association of Letter Carriers,
- National Association of Postal Supervisors,
- National Postal Mail Handlers Union,
- National Rural Letter Carriers’ Association,
- ReserveBar.com,
- United Postmasters and Managers of America,
- WineAmerica.
On the other side, the legislation is encountering pushback from the National Beer Wholesalers Association (NBWA), as well as health organizations the Community Anti-Drug Coalitions of America, the U.S. Alcohol Policy Alliance, and the Consumer Federation of America.
NBWA president and CEO Craig Purser cited opposition to the USPS delivering alcoholic beverages as a top priority during the trade group’s annual legislative conference. At the time, Purser said: “Your letter carrier should not be your bartender.”
In a statement shared with Brewbound on Monday, Purser said: “Beer distributors invest many millions of dollars to promote the quality of beer from refrigerated fleets to education to expensive climate control facilities, all in response to the need to keep perishable beer cool to make quality number one. We are disappointed that there are those in the beer industry who would support anything that puts beer on hot trucks and in non-climate controlled facilities for extended periods. This is not good for the beer consumer, and lower quality controls are not needed for the beer industry.”
Brewers Association (BA) president and CEO Bob Pease, whose organization supports the legislation, called concerns over warm trucks and warehouses “red herrings.” He said breweries can take precautions to safeguard “the condition and quality of the beer” shipped through the USPS.
According to Pease, the legislation doesn’t alter the three-tier system of distribution, nor does it supersede state shipping laws.
“We think the three-tier system should be an evolving doctrine, not a straight jacket,” he said. “This will not change our support for the three-tier system any bit.
Although the legislation is a top federal priority for the BA, Pease said he doesn’t envision a significant amount of volume flowing through the USPS. Nevertheless, he said the opportunity could add $180 million in revenue to the USPS.
“Stuck in the status quo, stuck in the ‘70s and ‘80s isn’t going to get it done,” he said. “The pandemic has taught us that. But it’s not a huge game changer because the volumes are not going to be that significant. It does not supersede state law. But this legislation at the federal level complements the legislation that we’re seeing in more and more states where our state guilds are trying to get direct-to-consumer shipping, inter and intrastate allowed. So that is hopefully the long-term vision of this.”
Pease pointed out that wine producers can ship intrastate in 46 states.
“Why shouldn’t beer have the same rights?” he said. “Everybody knows we should. Forces that protect the status quo don’t want change.”