Oregon’s craft distilleries got a boost Friday, when the Oregon Liquor Control Commission eased regulations and began allowing producers to take online or phone orders and ship directly to customers within the state.
Previously, customers had to place orders and pay in-person at the distilleries. But the change, which the OLCC called temporary, allows the companies to set remote-ordering systems, then deliver spirits themselves or use an authorized for-hire service.
“It’s not going to bring back the same revenue, but it’s a big change for us,” Kelly Woodcock, a partner and vice president of consumer experiences for Portland’s Westward Whiskey, told The Oregonian/OregonLive on Saturday. “One of the biggest things we count on is continued relationships with people, and being able to ship to our club members is the way we’re going to make our business thrive.”
Woodcock said the Westward team was meeting Saturday to set up an ordering system they hoped would be reading as soon as Monday.
Along with most of the broader hospitality industry, distilleries have struggled since COVID-19 restrictions closed many retailers’ doors in mid-March. Oregon’s distilleries have been allowed to sell to-go spirits from their retail locations since late March, but closed tasting rooms have slashed on-premise sales and in-person orders.
Additionally, consumers’ alcohol-purchasing habits have changed during the coronavirus crisis, industry observers say. Customers are looking for easier ways to obtain alcoholic beverages, relying primarily on grocery stores, and they’re buying cheaper brands, not top-shelf products like those made by Portland’s Distillery Row group of craft producers.
Many of the Portland Oregon distilleries, which have mostly been sitting idle, switched to producing hand sanitizer on their systems to bring in some revenue and help provide a much-needed resource during the pandemic.
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“There’s been a lot of reports of how revenue in liquor stores is up,” said Westward founder Christian Krogstad. “But what’s happening is people are not really shopping. They’re getting in, quickly grabbing what they know and leaving. So, sales of out-of-state brands like Jack Daniels are way up.”
Woodcock said the distillery industry has been pursuing such changes for years, and she thinks the crisis helped bring them about. The state was not only seeing significantly less tax revenue from the distilleries, she said, but also was likely looking for “creative ways to help us survive.”
On its order, the OLCC listed the change as a “temporary” amendment but gave no indication if it would eventually make the changes permanent. An email to the agency seeking clarification was not answered Saturday.
Westward has had “a ton of people calling to support us,” Woodcock said, “but that’s a lot easier for people who live near the distillery. This will make it much more possible to get our product out there.”
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