Since January 1, 2026, craft distilleries have been able to ship spirits straight to California homes with a Type 94 permit. That ends December 31. The California legislature did not pass an extension this year, so every Type 94 permit expires at the end of 2026 and can't be renewed.
If California is a meaningful share of your online sales, now is the time to plan how those customers keep buying from you in January.
What is ending?
AB 1246 created the Type 94 Direct Shipper Permit for craft distilleries making under 150,000 gallons a year. It took effect January 1, 2026, with a sunset date of December 31, 2026. By June, 43 distilleries held one, according to the 2026 Sovos ShipCompliant Direct-to-Consumer Spirits Shipping Report.
Supporters planned to make the law permanent in 2026. That didn't happen. The session ended in August with no replacement bill, so the permits expire and Californians will again be unable to have spirits shipped to them directly from any US distillery.
Do people still want to buy spirits online?
Yes. The same report surveyed 2,001 US adults 21+ with The Harris Poll in August 2026, including 741 who drink craft spirits at least once a month. Nationally:
- 82% of regular craft spirits drinkers want to be able to buy craft spirits shipped to their home.
- 76% have found a spirit while traveling that they wished they could buy at home.
- Regular craft spirits drinkers who are likely to buy online say they would spend about $119 a month, and 81% of them would buy at least once a month.
- 68% of all adults 21+ support changing state laws to allow more spirits shipping.
These are national numbers, not California-only, but California is the largest market in the country. The demand doesn't go away on January 1. Only the distillery's permit does.
How can Californians keep buying your spirits after January 1?
Through a licensed California retailer. Under the three-tier system, a licensed retailer in California can sell spirits to a California consumer and ship or deliver the order within the state. The retailer is the seller, so the distillery doesn't need a shipping permit.
What you need is California distribution, so that licensed California retailers can buy your products through your distributor. With that in place, your website can keep selling to California buyers:
- The customer orders on your website.
- The order goes to a licensed California retailer that stocks your products.
- The retailer sells and ships or delivers the bottle, and handles age verification and taxes.
This is how AccelPay works. The checkout sits on your own website, and each order goes to a licensed retailer near the buyer. The network has 3,500+ licensed retail stores, including BevMo in California, so the same setup covers California and most of the states where a distillery can't ship direct.
Whether a retailer can fill orders for your products in California depends on your products and distribution, so we check coverage with you before launch.
What should distilleries do before December 31?
- Check your California distribution. If you don't have a distributor in California, that is the first step for every route except direct shipping.
- Plan the switch for California orders. Decide when California orders move from your own shipping to a retailer in the AccelPay network.
- Tell your California customers. Let your email list know how to keep ordering in January, before holiday orders peak.
- Keep shipping direct where you're licensed. The other direct shipping states are not affected.
- Watch for new bills in 2027. The report expects new efforts in California, and says lobbying in Missouri, Hawaii, South Dakota and Iowa is carrying forward, with early work in Colorado.
AccelPay launches in about one week from kickoff. See pricing and how it works, or read the California alcohol shipping guide.
This post is general information, not legal advice. Check the current rules with the California ABC or your compliance advisor.
Sources: Sovos ShipCompliant, 2026 Direct-to-Consumer Spirits Shipping Report (with The Harris Poll and the American Craft Spirits Association, October 2026); Sovos ShipCompliant, California DTC spirits shipping; California Department of Alcoholic Beverage Control.
Frequently asked questions
When does California's spirits direct shipping permit end?
December 31, 2026. AB 1246 created the Type 94 Direct Shipper Permit for craft distilleries starting January 1, 2026, with a one-year sunset. The legislature did not pass an extension, so every Type 94 permit expires at the end of 2026.
Can I renew my Type 94 permit for 2027?
No. According to the 2026 Sovos ShipCompliant Direct-to-Consumer Spirits Shipping Report, Type 94 permits issued under AB 1246 expire on December 31, 2026 and cannot be renewed. Starting in 2027, no US distillery can ship spirits directly to California consumers unless a new law passes.
Can Californians still buy spirits online after January 1, 2027?
Yes, from licensed California retailers. A licensed retailer in California sells the bottle and ships or delivers it to the buyer, so the distillery does not need a shipping permit. The distillery's products need to be available to those retailers through its California distribution.
How does AccelPay help a distillery sell to Californians?
AccelPay puts a checkout on the distillery's own website and sends each order to a licensed retailer near the buyer, who sells and ships it. The network has 3,500+ licensed retail stores in 40+ states. Whether a retailer can fill orders for your products in California depends on your products and distribution, so we check coverage on a call.