Direct-to-consumer shipping has been hailed as a lifeline for small cideries that often struggle to gain space on distributor trucks or retail shelves. For some producers, DTC represents a breakthrough opportunity. For others, its impact may be more modest than what any buzz suggests.
In Oregon, Toney Chay sees enormous potential. As general manager of 7bev Corp, which includes Queen Orchard and Ale & Cider House, Chay said DTC sales can be transformative, especially for rural cideries making small-batch heritage products. Those bottles rarely move in volume through wholesalers but find dedicated customers online.
“Direct-to-consumer sales are absolutely a game-changer,” Chay said. “The biggest barriers are outdated state alcohol laws and resistance from wholesalers who want to maintain their gatekeeper role.
“Cider often gets lumped into generic categories and isn’t always recognized in legislation the way beer or wine is.”
The upside can mean higher margins, a better brand-to-consumer connection, and freedom from competing for a distributor’s attention. For many cideries, selling bottles with a higher cost of goods, the difference between a wholesale check and a full-price online sale can be the gap between breaking even and actually turning a profit. DTC also offers valuable direct data to the cidery, including who buys the product, when they buy it , and how to re-engage them. Those are data points and insights that can guide production planning and marketing spend going forward.
But the risk is equally real. Shipping compliance, adult-signature requirements, and customer acquisition costs can erase those margins if not managed carefully. Unlike a typical tasting room visitor, online buyers often require repeated digital marketing touchpoints before making a purchase, which adds to overhead.
Doug Doetsch is less convinced. Doetsch, co-owner of Seminary Hill Orchard in Callicoon, New York, said his state made its temporary pandemic-era shipping law permanent in 2024, but he doesn’t see it as revolutionary.
“While undoubtedly helpful, I don’t think DTC shipping is a game-changer,” he said. “You still need effective marketing to create awareness, establish name recognition, and motivate consumers to order and pay for your cider. Those marketing efforts are still costly and time-consuming.”
Doetsch credits the New York Cider Association with pushing the legislation through after years of lobbying. With the highest number of cideries in the country, the association was able to make a compelling case about the industry’s value to agriculture and the state’s economy. The win, he said, is useful, but still only one piece of the puzzle for long-term growth.
Doetsch’s skepticism highlights the ROI challenge many cideries face: a DTC license opens a door, but only those with existing brand equity, consistent digital marketing, and fulfillment infrastructure are positioned to walk through it effectively. For smaller operators without a marketing budget, the benefits may arrive slower than expected.
That contrast underscores the larger tension. For some cideries, DTC shipping is an efficient way to leverage niche appeal, reaching enthusiasts across a state or region who will pay a premium for bottles they cannot buy locally. For others, the return on investment is limited by the high cost of customer acquisition and shipping logistics, which can dwarf the incremental sales volume.
READ MORE: The Educational Pieces Needed to Boost DTC Cider Sales
Chay believes broader distribution reform would also help cider’s growth, including cider-specific licensing and reduced red tape at farmers’ markets and festivals. But, if a cidery is located in a state that has not yet adopted DTC shipping, he said the first step is joining forces.
“Storytelling is powerful,” Chay said. “Showing how cideries contribute to agricultural preservation, local jobs, and tourism is more compelling than just talking economics. If cider is going to get fair treatment, the industry has to work together to push for that recognition.”
Be the first to comment