Massachusetts Alcoholic Beverage Market: Regulations, Statistics, Trends, and Wholesalers

Massachusetts boasts a vibrant and diverse beverage alcohol landscape, reflecting the state’s rich history and innovative spirit. From craft breweries and distilleries to wineries and cideries, the Bay State offers a wide array of locally-produced beverages. Like many states in the Northeast, Massachusetts is heavily populated with independent alcohol retailers. The state is home to approximatley 3,000 off-premise spirits licenses, and 1,800 of them belong to standalone beverage alcohol stores, according to MarketWatch.

We’ve prepared a guide to the Massachusetts market which covers the following topics:

• Consumption trends
• The most popular alcohol categories
• Local guidelines

Massachusetts has an approximate population of 6.9 million people, of whom 5.3 million are within the legal drinking age bracket. Despite its smaller population, the state ranks ninth in terms of the most valuable spirits markets in the United States.

With a strong sports culture, particularly around teams like the Boston Red Sox, New England Patriots, and Boston Celtics, tailgating and sports bars are integral to the state’s drinking traditions.

If you need help establishing your presence in Massachusetts, provide your information below, and we’ll contact you to discuss how we can help.

At Park Street, we can help anyone looking to expand into the Massachusetts market.

Consumption Trends In Massachusetts

Massachusetts is one of the ten largest beverage alcohol markets in the United States. According to the most recent data, the state sells approximately 56 million 9L cases of beer, followed by 13 million cases of wine, and 7.8 million cases of spirits. Notable drinking trends unique to Massachusetts include the state’s penchant for 50ml products. For off-premise retailers, 50ml sales can range between 7%-15% of a store’s overall sales, according to Rob Mellion, president of the Massachusetts Package Store Association (MPSA).

Below you will find some charts displaying the volume growth for beer, wine, and spirits over a five-year period.

Massachusetts Spirits Consumption from 2019-2023 by 9-Liter Cases

Massachusetts Wine Consumption from 2018-2022 by 9-Liter Cases

Massachusetts Beer Consumption from 2018-2022 by 9-Liter Cases

Massachusetts State Alcohol Licensing

All U.S. states are regulated at a federal level according to the Federal Alcohol Administration Act. In the simplest terms, manufacturers, sometimes referred to as producers, make the alcohol products. Wholesalers sell the alcohol to the retailers. Retailers sell the alcohol to consumers. While there are some exceptions to this flow of goods, this is the federally regulated route to market.

At a state level,  Massachusetts is overseen by Alcoholic Beverages Control Commission (ABCC). The agency is responsible for licensing, tax collection and auditing, fee collection, and enforcing the state’s laws and regulations. The ABCC oversees all tiers including:

• Manufacturers (breweries, wineries, distilleries, cideries, meaderies, and rectifiers)
• Wholesalers, also known as distributors
• Retailers (on-premise and off- premise)

All businesses that deal with manufacturing, distributing, selling, or importing alcohol in Massachusetts must be licensed.

As of 2023,  there were over 80 licensed distillers and bottlers, more than 130 breweries with active licenses, and 55 wineries in Massachusetts.

Common Licenses for Manufacturers in Massachusetts

Licenses for In-State Brands:

Alcoholic Beverages Manufacturer License (ABCC)—This license authorizes manufacturers of alcoholic beverages to sell their products to any wholesaler or retailer holding a valid license for the sale within the Commonwealth.

Alcoholic Beverages Farmer Distillery License (ABCC) – This license allows holders to produce and sell distilled spirits at retail or wholesale made primarily from products grown on the licensee’s farm.

Pouring Permits and Retail Licenses can also be obtained if you plan to offer tastings, sell drinks on-premises, or sell bottles directly to consumers from your distillery.

Out-of-State Brand Requirements:

Certificate of Compliance (ABCC) – This certificate is required for out-of-state manufacturers, importers, or wholesalers to ship alcoholic beverages directly to Massachusetts. The ABCC allows these companies to sell to Massachusetts wholesalers, but they cannot sell directly to retailers.

Massachusetts State Alcohol Regulations

Each brand and label must be registered with the ABCC before it can be sold in Massachusetts. They must also Register with the Massachusetts Department of Revenue for applicable taxes.

Franchise State

Massachusetts is a Franchise State, which means that certain laws protect alcohol beverage distributors and prevent their suppliers from terminating distribution contracts unless good cause is shown, among other requirements.

Price Posting

Price posting is required at the wholesale level in Massachusetts.

Suppliers must submit their wholesale prices to the ABCC by the 10th of any given month for the price to become effective on the 1st of the following month.

This price will remain in effect until it is amended by the supplier.

Shipping and Selling to Consumers

Spirits

Massachusetts allows for the direct sale of spirits to consumers under very specific conditions, including the following:

Farmer Distillery – Holders of this license can sell their product directly to consumers at retail. The spirits are made primarily from products grown on the licensee’s farm.

Transport Permits—Alcoholic beverages can be transported and delivered to consumers under strict conditions, including a valid transport permit for the vehicle executing the delivery.

Wines

Direct Wine Shipper’s License—Wine suppliers holding this license may sell and deliver up to 12 nine-liter cases of wine per year to Massachusetts residents 21 years or older.

Massachusetts Spirits Volume By Category – 2023 Data

Spirit trends in Massachusetts by volume and dollar sales in 2023.

Source: Beverage Information Group

Massachusetts Wine Volume Sales By Category – 2022 Data

Wine trends in Massachusetts by volume sales in 2022

Source: Beverage Information Group

Massachusetts Beer Volume Sales By Category – 2022 Data

Beer trends in Massachusetts by volume sales in 2022

Source: Beverage Information Group

Beer Distributors

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Selling Alcohol In Massachusetts

In the state of Massachusetts, everything related to alcohol is controlled by the Alcoholic Beverages Control Commission. They are in charge of every aspect of alcohol including production as well as selling and consumption.

Should you be looking for information on selling alcohol in the state, then please see below. Should you not find the information you’re looking for, please contact us.

FAQs on Massachusetts Beer, Wine & Spirits Sales

Buying Alcohol In Massachusetts – Hours, Locations & Taxes

Learn all the most popular questions that consumers of alcoholic beverages have in the Bay State.

FAQs on Buying Beer, Wine & Liquor in Massachusetts

(Data Sources – mass.gov, wikipedia.org)

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