The U.S. wine landscape has shifted: On Feb. 26, Mississippi Gov. Tate Reeves approved a bill permitting wineries to ship wines directly to consumers in the Magnolia State. The law takes effect July 1, 2025. Arkansas, Delaware, Rhode Island and Utah are now the only states not to permit direct-to-consumer (DTC) winery shipping or to limit it to just in-person, on-site purchases. But some direct-shipping advocates worry the bill has too many limitations to truly open Mississippi’s wine market.
On Feb. 18, the Mississippi Legislature voted to pass State Sen. Walter Michel’s Senate Bill 2145, moving it to Reeves’ desk to be signed as law. "This is a big win for Mississippians that are wine lovers, travelers and anyone that enjoys the opportunity to try new things,” State Sen. Jeremy England, one of the bill’s sponsors, told Wine Spectator via email. “It is one more notch in the positive for our image and for our efforts to attract new people and businesses to this Mississippi. That is worth a toast here in the Hospitality State."
A complementary bill, HB 1175, passed in the state House of Representatives earlier in February, sending the legislation to the Senate Finance Committee, where it passed by a slim margin. Like similar legislation in the past, it faced challenges, and it failed in the Senate on Feb. 13 before receiving the necessary three-fifths vote.
“The House has provided the leadership and the courage whenever it comes to freedom of choice concerning alcohol,” State Rep. Hank Zuber, the House State Affairs chairman, told the Mississippi House on Feb. 18. “[We] have passed direct ship each and every year, overwhelmingly, for the last five, six, seven years.” Zuber emphasized that the bill would not create competition with Mississippi’s alcohol retailers, noting that it only permits the direct shipment of wines not already carried by licensed wholesalers in the state. The bill makes an exception for “highly allocated” wines.
Zuber also observed that without the bill, Mississippi’s government would continue losing a potential source of income, noting that even members of Capitol staff had been having wine shipped to another state before taking it home. “[Direct wine shipping] is happening now, and we’re not collecting the tax revenue.”
What This Means for Wineries
The new law allows licensed in-state or out-of-state producers to sell and directly ship wine to Mississippi residents and fulfillment companies (firms that handle shipping logistics for wineries) through approved common carriers such as UPS or FedEx. The winery must hold a direct wine shipper’s permit from the state’s Department of Revenue; they must also keep at least three years of records, report shipping details to the state on a quarterly basis and label all shipments with “Contains Alcohol: Signature of Person Age 21 Years or Older Required for Delivery.” The wine must have an “alcohol by weight” of at least 5 percent; and shippers cannot send wine to addresses within dry communities.
In addition to a 15.5 percent tax collected on each shipment, the Mississippi Office of Alcoholic Beverage Control (MS ABC) will collect a 3 percent markup. It will give this revenue to the Department of Mental Health’s Mental Health Programs Fund.
[article-img-container][src=2025-03/winery-direct-consumer-shipping-map.jpg] [caption=The direct-to-consumer map will look a bit different starting July 1, 2025.] [credit= (Henry Eng)] [alt= A map showing which states permit, do not permit or limit direct wine shipping from wineries][end: article-img-container]
"It is a great day for economic freedom,” said attorney Sean O’Leary, who has represented plaintiffs in a number of DTC cases. “Wineries gain access to a market of over 2 million adults, allowing them to grow their business. Growing businesses and providing greater consumer choice [is] a true victory.”
As in many states, the new law will primarily benefit out-of-state wineries. According to World Population Review, as of 2024, Mississippi has one of the lowest numbers of wineries of any state. (There currently seem to be at least seven producers operating in the state, and possibly as many as 13.)
What This Could Mean for Wine Consumers in Mississippi
“Mississippi residents will no longer be constricted to what their wholesalers choose to provide them and now can make independent choices to purchase the wine they desire,” said O’Leary.
Indeed, the law offers an opportunity for wine fans in Mississippi to purchase wines that don’t currently have distribution in the state. (For reference, there were 1.38 million 9-liter cases of wine sold in Mississippi in 2024, representing more than $125 million in value.) Recipients must be at least 21 years old, and they must sign for the delivery. Additionally, the wine cannot be for resale, and wineries cannot ship more than 12 cases to one address per year.
“While the Mississippi ABC, [which oversees the state’s wholesale tier], certainly strives to meet the needs and interests of its constituent consumers, the availability of DTC shipping helps fill in the inevitable gaps in coverage,” said Alex Koral, regulatory general counsel for shipping compliance company Sovos ShipCompliant.
A Deeper Look at What’s in the Bill
So, does the final version of the law go far enough? For some in the wine industry, no. One objection is that consumers’ options are limited if they can generally only order wines not already distributed in Mississippi. Another criticism is that the bill didn’t address retail shipping. “Even with the success of this bill … consumers will have to rely on generally pathetic access to wine,” said Tom Wark, executive director for the National Association of Wine Retailers (NAWR) trade organization.
Koral believes that the law’s punishment for violations of the various rules wineries must follow, such as properly labeling shipments, may make wineries and carriers hesitant to ship into Mississippi, leaving a question mark on potential benefits for consumers. Under the law, a winery that violates the rules faces a potential misdemeanor with a fine of at most $1,000 and/or 6 months imprisonment.
The Wine Wholesalers of America (WSWA) trade organization, which has long opposed winery direct shipping, expressed concerns that the law hurts Mississippi’s ability to regulate its alcohol trade. “[It] creates an open door for underage access, illegal shipments, unverified products and tax revenue losses,” said Dawson Hobbs, WSWA executive vice president for government affairs.
Some Hope During a Challenging Time for DTC?
This new law comes during a challenging period for DTC wine shipping in the United States and a difficult time for wine sales altogether. According to the 2025 Direct-to-Consumer Wine Shipping Report from Sovos ShipCompliant and WineBusiness Analytics, the volume of DTC shipments fell 10 percent in 2024 (from 2023), and value fell by 5 percent. (Incidentally, both the volume and value of wine sold in Mississippi decreased by more than 3 percent in 2024.)
Direct shipping by out-of-state retailers has seen recent losses in court. On March 4, the U.S. State Court of Appeals for the Ninth Circuit issued a decision in Day v. Henry, ruling that Arizona’s law against out-of-state retail shipping was not discriminatory against interstate commerce. In the court’s majority opinion, the law is constitutional and Arizona can continue to require that alcohol retailers have an in-state presence to ship wines directly. This ruling upheld a district court decision.
Yet, there’s reason to be hopeful: “Certainly, the wine industry is facing challenges, from increased competition from other product types to sensational claims about its healthiness, but these are affecting all sales—DTC is not unique,” said Koral. “The addition of new markets, like Mississippi, is a boon to DTC shippers, as it makes hundreds of thousands of potential new consumers suddenly available.”
What the Future Holds for DTC
Time will tell what full effect the law will have, but this still marks a success for the bill’s sponsors: “In the end, the argument of freedom for consumers coupled with the fact that these wines are either not available or only available on a limited basis carried the day,” England observed.
Looking ahead, New York’s state legislature is considering a bill legalizing direct retailer wine shipping, and Delaware legislators are reportedly planning to introduce a new DTC bill after a previous attempt failed in 2024.
What’s more, the new Mississippi law, itself, might even affect further change: “Lawmakers in those states may take notice and decide to not fall too far behind everywhere else,” said Koral. “Mississippi's actions could spur [Delaware lawmakers] to finally act.”
Where can you order wine from? Check out Wine Spectator’s comprehensive guide to state shipping laws.
