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

Virginia is a significant player in the beverage alcohol industry and operates as one of the nation’s prominent control states. In 2023, Virginia generated sales of approximately 5.8 million 9-liter cases, representing the 19th largest spirits market in the country. The state had a population of 8.6 million in 2023, including 6.4 million within the legal drinking age bracket.

The Virginia Alcoholic Beverage Control Authority (Virginia ABC) maintains exclusive control over the state’s spirits retail and wholesale operations, managing a network of over 400 retail outlets strategically positioned throughout the Commonwealth. This extensive retail presence ensures remarkable market coverage, with approximately 93% of Virginia residents living within a 10-minute drive of an ABC store.

The Authority’s 2018 transition from a traditional government agency to an independent political subdivision has enhanced its operational flexibility and efficiency in serving its triple role as retailer, wholesaler, and regulator.

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

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

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

At Park Street, we can help anyone looking to enter the market or expand their services in Virginia.

Consumption Trends In Virginia

Virginia is one of the largest control markets in the United States, but in recent years, wine and beer sales have declined while spirit sales have taken a larger share. In 2023, Virginia sold 5.8 million 9-liter cases of spirits and 9.6 million cases of wine, while recent statistics for beer show 65.2 million cases sold.

Virginia Spirits Consumption from 2015-2023 by 9-Liter Cases

Virginia Wine Consumption from 2019-2023 by 9-Liter Cases

Virginia Beer Consumption from 2019-2023 by 2.25-Gallon Cases

Virginia State Alcohol Licensing

All U.S. states operate under the Federal Alcohol Administration Act’s regulatory framework. While manufacturers produce alcohol products, wholesalers distribute to retailers, and retailers sell to consumers, Virginia operates distinctively as a control state where the Virginia Alcoholic Beverage Control Authority (Virginia ABC) serves as both wholesaler and retailer for spirits.

Virginia Label Registration

Before selling alcoholic beverages in Virginia, suppliers must register labels through ABC’s Management of Inventory Product Sales (MIPS) online system. For spirits, full listings require both a federal Certificate of Label Approval (COLA) and two complete sets of labels. Beer and wine labels must also be registered with the state for a fee of $30.

Price Posting

Spirits:

Virginia ABC requires 90-day advance notification for price changes, which can only occur quarterly (February 1, May 1, August 1, November 1).

Wine/Beer:

Suppliers must provide 30-day advance written notice of price increases to wholesalers with copies to Virginia ABC.

In-State Permits

• Distillery License: Authorizes manufacture, sale, delivery, and shipment of distilled spirits
• Winery License: Permits manufacture and sale of wine to licensed wholesalers
• Farm Winery License: Available in two classes (A: 51% fruit from farm; B: 75% fruit from Virginia)
• Brewery License: Authorizes manufacture, sale, delivery, and wholesale shipment of beer

Out-of-State Permits

Spirits:

Manufacturers must work through licensed Virginia wholesalers, as direct licensing isn’t available.

Wine and beer:

• Shipper’s License: Allows direct shipment to Virginia consumers

Out-of-State Delivery Permit: Authorizes delivery of authorized brands to Virginia consumers

Required Steps for Alcohol Suppliers Selling in Virginia

To enter Virginia’s beverage alcohol market, suppliers must pursue either a special order process or a full listing through the Virginia ABC. Each pathway has its own distinct requirements and procedures in accordance with state law.

Special Orders

The special order process serves as an entry point for products not regularly stocked in Virginia ABC stores:

• Products must be registered in Virginia ABC’s Management of Inventory Product Sales (MIPS) online system
• Suppliers must demonstrate product availability for delivery to Virginia ABC’s bailment warehouse
• Evidence of customer demand, typically through previous special order requests, strengthens the application
• Products must maintain compliance with federal and state labeling regulations

Full Listings

For products seeking regular placement in Virginia ABC stores, the full listing process requires a more comprehensive approach:

• Products must be presented to the Virginia ABC Listing Committee, with presentations occurring approximately three months before intended shelf placement
  • Pre-screening takes place roughly one month before the presentation week
• Complete product registration in the MIPS system is mandatory
• Detailed product specifications must be submitted including:
  • Proof and alcohol percentage
  • Case configuration
  • Shipping costs
  • UPCs
  • Package dimensions and weights
• Products must be warehouse-ready at least two weeks before the expected shelf date

Deadlines and Performance Requirements

The Virginia ABC maintains strict timeline and performance standards:

• New products receive a 14-month window to exceed established minimum annual sales thresholds
• Existing brands seeking size extensions must demonstrate at least $150,000 in annual contribution margin per size
• Products failing to meet these benchmarks may face delisting
• The committee reviews submissions on a regular basis, making timing and deadline adherence crucial for successful applications

Virginia State Alcohol Regulations

Shipping and Selling to Consumers

Direct Sales and Shipments of Spirits

• Although beer and wine can be sold direct-to-consumer in Virginia, shipping of spirits is prohibited.
• All spirits must be sold through Virginia ABC retail stores

Direct Sales and Shipments of Wine and Beer

• Out-of-state wineries and breweries may obtain a Shipper’s License to ship directly to Virginia consumers
• License costs $230 annually with a $195 initial application fee
• Shipping is limited to two cases of wine or beer per month per consumer
• Products must be for personal consumption, not resale
• Out-of-state entities may also obtain a Delivery Permit for authorized brands

Direct Shipments by Retailers Off-Premise:

• Virginia retailers may deliver beer and wine directly to consumers with appropriate off-premise privileges.
• Among other requirements, deliveries must be made by:
  • Approved personnel with proper training
  • Common carriers who verify ID

Third-party delivery services (license available until July 1, 2026)

Virginia Spirits Volume Sales By Category – 2023 Data

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

Source: Beverage Information Group

Virginia Beer Volume Sales By Category – 2023 Data

Beer trends in Virginia by volume sales in 2023

Source: Beverage Information Group

Virginia Wine Volume Sales By Category – 2023 Data

See below for the wine trends in Virginia by volume sales in 2023.

Source: Beverage Information Group

Selling Alcohol In Virginia

Here’s a quick rundown of some of the most popular questions and answers related to the sale of alcohol in the state of Virginia.

FAQs on Virginia Beer, Wine & Spirits Sales

Buying Alcohol In Virginia – Hours, Locations & Taxes

You must also understand the buying side as well. Below you will find a list of questions and answers related to buying alcohol in the state of Virginia. Should you be interested in understanding more than what’s published below, please reach out to us for more information.

FAQs on Buying Beer, Wine & Liquor in Virginia

At Park Street, we provide services to thousands of clients looking to expand their reach and improve their processes. Services provided include but are not limited to financial accounting, beverage compliance, logistic operations, and more. Reach out to us for more information on our services offered