North Carolina Alcoholic Beverage Market: Regulations, Statistics, Trends, and Wholesalers

North Carolina has a vibrant alcohol industry. The Tar Heel State boasts a thriving craft beer scene, an expanding wine industry, and a burgeoning community of local distilleries. This diverse market caters to a broad spectrum of tastes, offering everything from locally-produced artisanal spirits to household name brands.

However, navigating this market comes with a unique set of laws. As a control state, the North Carolina liquor market operates under a strictly regulated system. At its core are the local ABC boards, which operate the state’s retail stores and serve as the exclusive sellers of packaged liquor for off-premises consumption. These boards, while independent entities, work closely with the North Carolina ABC Commission to enforce regulations, manage inventory, and implement statewide policies. This system creates a distinctive environment for both consumers and industry players, shaping the way North Carolinians experience and interact with their favorite spirits.

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

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

If you need help establishing your presence in North Carolina, provide your information below, and we’ll contact you to share more on how we can help.

At Park Street, we can help anyone looking to enter the market or expand their services in North Carolina.
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Consumption Trends In North Carolina

North Carolina stands as one of the largest control state markets in the United States, with a robust alcohol industry. In 2023, the state saw impressive sales of 7.6 million 9-liter cases of spirits. While beer and wine have experienced a marginal decline in recent years, they continue to dominate the market. Beer sales accounted for a substantial 77 million cases, while wine contributed 7.1 million cases to the state’s alcohol landscape.

North Carolina Spirits Consumption from 2019-2023 by 9-Liter Cases

North Carolina Wine Consumption from 2018-2022 by 9-Liter Cases

North Carolina Beer Consumption from 2018-2022 by 9-Liter Case

North Carolina State Alcohol Listings & Licensing

As of 2022,  there were over 150 licensed distillers and bottlers, according to the TTB, more than 420 breweries with active licenses, and about 250 wineries in North Carolina.

In-State Permits

Distillery Permit – Under this one-size-fits-all all permit, the holder may do any of the following:

1. Manufacture, purchase, import, possess and transport ingredients and equipment used in the distillation or production of spirituous liquor.
2. Sell, deliver and ship spirituous liquor in closed containers at wholesale to exporters and local boards within the State, and, subject to the laws of other jurisdictions, at wholesale or retail to consumers in other states or nations, or private or public agencies or establishments of other states or nations.
3. Transport into or out of the distillery the maximum amount of liquor allowed under federal law, if the transportation is related to the distilling process.
4. Sell spirituous liquor distilled or produced at the distillery in closed containers to visitors who tour the distillery for consumption off the premises.

 Commercial Transportation Spirituous Liquor Permit – allows commercial transport of spirituous liquor.

Out of State Permits

Non-Resident Spirituous Liquor Vendor Permit – The holder of a nonresident malt beverage vendor permit may sell, deliver, and ship malt beverages in this State only to wholesalers, importers, and bottlers licensed under this Chapter

North Carolina State Alcohol Regulations

North Carolina is a control state and sales are overseen by the North Carolina Alcoholic Beverage Control Commission, with sales exceeding $1.7 billion in 2022 and a population of 7.9 million legal drinking-age residents.

Products are exclusively sold through locally operated ABC Stores. Like some other states with ABC stores, North Carolina’s stores are closed on Sundays, requiring brands to plan their operations accordingly.

Shipping and Selling to Consumers

Direct Sales and Shipments of Beer and Spirits

Suppliers of spirits or malt beverages may not ship directly to consumers.

Direct Sales and Shipments of Wine

Wineries located in or outside of North Carolina holding a federal basic wine manufacturing permit may apply for a wine shipper permit. Wine shipper permittees may sell and ship no more than two cases of wine per month to any person in North Carolina to whom alcoholic beverages may be lawfully sold.

Delivery by Retailers

As of July 2024, restaurants now having the ability to premix cocktails and allow customers to take them to go. The drink must be less than 13% alcohol and be ordered with food.

Required Procedures for Alcohol Suppliers Selling in North Carolina

In North Carolina, special order and full listing submissions are handled in accordance with state law in a unique manner.

Special Orders

In North Carolina, brands can submit special orders without relying on distributor or retailer requests. This unique feature provides an opportunity for brands to introduce their products independently and potentially gain early market traction. Leveraging special orders can be an effective way to penetrate the North Carolina market swiftly.

Full Listings

Brands can opt for a full listing to establish a more comprehensive presence, but this process requires the involvement of a broker. The broker serves as the intermediary responsible for submitting listing requests and communications with the North Carolina Alcoholic Beverage Control Commission. Since there is no set listing meeting schedule, maintaining close collaboration with the broker is essential to meet submission deadlines and maximize the chances of securing a listing.

Requirements for Listing Submission

Before submitting a listing, beverage alcohol brands must fulfill specific requirements. Firstly, they need to establish a shipping point within North Carolina to ensure efficient distribution and meet market demands effectively. Additionally, accurate information regarding the broker’s name and company must be provided. In certain cases involving specific distributors, specifying the broker’s department or division may be necessary. Finally, brands must include high-quality JPEG shots of their bottle to accompany the listing submission, enhancing visual appeal and presentation.

With its substantial consumer base and strong sales figures among liquor control states, the North Carolina beverage alcohol market offers significant opportunities for brands. To succeed, it is crucial to navigate the state’s unique regulatory framework effectively. By understanding the entry paths, submission requirements, and the state-operated distribution model, beverage alcohol brands can establish a successful presence in North Carolina. Collaborating closely with local brokers, meeting submission deadlines, and implementing robust marketing strategies will contribute to a prosperous journey in this distinctive market.

Excise Tax Rates

Unfortified wine: $0.2634/liter
Fortified wine: $0.2934/liter
Liquor: 30% excise tax levied on liquor sold in ABC stores.
Malt Beverage: $0.6171/gallon

North Carolina Spirits Volume Sales By Category – 2022/2023 Data

Spirit trends in North Carolina by volume and dollar sales in 2023.

Source: Beverage Information Group

North Carolina Beer Volume Sales By Category – 2022 Data

Beer trends in North Carolina by volume sales in 2022

Source: Beverage Information Group

North Carolina Wine Volume Sales By Category – 2022 Data

Wine trends in North Carolina by volume sales in 2022

Source: Beverage Information Group

Coming Soon: Wine trends in North Carolina by volume and dollar sales in 2020.

Beer Distributors

Coming Soon

Self-Pitch Distribution Model

Finding the right distributor is often cited as one of the most difficult challenges to building a brand in the U.S. There are thousands of brands and industry consolidation has led to fewer distribution companies to choose from in each market.

As such, one option available to emerging brands is to use Park Street’s self-pitch distribution model.

The self-pitch distribution model is similar to the three-tier traditional distribution model where the product is delivered to retailers, but the key difference is that sales and marketing are handled by the supplier.

Park Street’s CEO Explains Self-Pitch Distribution

Selling Alcohol In North Carolina

The buying, selling, manufacturing, and consuming of alcohol have been regulated and controlled by the North Carolina Alcoholic Beverage Control Commission since 1937. This includes transportation and possession of alcohol as well. All the enforcement of the state regulations is controlled by this commission.

If you’re looking to sell alcohol in NC, then you need to know and understand the regulations set forth by this board. Remaining compliant is of the utmost importance. This is why we’ve provided answers to many questions related to selling alcohol off-premise and on-premise. If you have additional questions, please feel free to reach out to us by clicking here.

FAQs on North Carolina Beer, Wine & Spirits Sales

Buying Alcohol In North Carolina – Hours, Locations & Taxes

North Carolina, is a state where the sale of some alcohol is restricted to state-run locations. Learn the rules and regulations when it comes to buying alcohol in the state. We cover laws on buying wine, beer, and spirits below as well as buying on-premise and off-premise.

FAQs on Buying Beer, Wine & Liquor in North Carolina

(Data Sources – ncleg.gov, abc.nc.gov, portal.abc.nc.gov, wikipedia.org, ncleg.gov, ncleg.gov)

Here at Park Street, we connect suppliers, wholesalers, distributors, and retailers. We also provide various types of services, giving you the opportunity to remove the complexity, and allowing you to focus solely on growth and brand building while we do the rest! If you’re interested in learning more about our services, please feel free to complete the form below and a member of our client development team will be in touch within 24 hours. )

@bsirrico@parkstreet.com

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