Distilling New Revenues

Jun 11 2012
OIG Blog Category: Products & Services 15 Comments

A 100-year old temperance-era law prohibits the Postal Service from shipping alcohol and benefiting from the growth in online purchases of wine, beer, and other spirits. As states have loosened their restrictions on inter-state alcohol shipments, FedEx and UPS have seized this burgeoning opportunity. The Postal Service needs to secure new sources of revenue in an era of declining mail volume. Shipping of alcohol could create an additional revenue stream, while capitalizing on the Postal Service’s strength in last-mile delivery.

Shipping of alcohol would require the Postal Service to establish a strict set of rules. First, it would have to be sure no one under age 21 receives alcoholic shipments. Second, it would have to comply with varying state laws, some of which prohibit the shipment of out-of-state alcohol directly to consumers. Other states allow direct shipments to consumers but restrict those shipments to producers, such as wineries.

[poll id="228"]
The Postal Service has indicated it would put proper restrictions in place, such as requiring an adult signature for shipments of alcohol. It even appears to have ideas around flat rate boxes that could hold two, four, or six bottles of wine. With the right restrictions in place, should the Postal Service be allowed to ship alcohol and tap into this growing market? Or should an organization that is part of the federal government stay out of the business of shipping alcohol given the negative images sometimes associated with alcohol consumption?

What do you think? Share your comments below.

This blog is hosted by the OIG's Office of Audit.

Comments (15)

The most direct way to report fraud, waste, misconduct within the Postal Service is via our Hotline form

Leave a comment

Comment Policy
By submitting this form, you accept the Mollom privacy policy.
 Subscribe to comments
  • anon

    The USPS needs to be competitive with todays mailing options. Sending wine to the states that allow wine with the proper restrictions is a no brainer for the USPS. Massive revenue is just waiting for the USPS to put the ducks in a row! You need to keep pace/exceed UPS and FedEx.

    Jun 21, 2016
  • anon

    What is it that makes alcohol ok and tobacco not ok? As the article states, there has been a 100 year ban on mailing alcohol but USPS recently banned tobacco shipments. Why one and not the other? Also, has anyone looked to see whether these other carriers are checking ID's? I don't think USPS should have requirements FEDex and Brown do not have.

    Jun 18, 2012
  • anon

    I would not know, however my son is in the wine business. I asked him what he thought. He said "I wish they knew how to ship my wine, but when I shipped my XMAS presents to my customers, 30-40% didn't get the gift

    Jun 18, 2012
  • anon

    As the person who delivers the mail for me often leaves my mail on the floor, not even bothering to put it in the mailbox, I think the answer to that question is no. If the mail is junk mail, I am not upset, but this has been happening with parcels as well. I will not' trust the USPS with good drink if they cannot deliver other nonpotable items. If they would take the extra step to perform efficient service then my opinion might be different.

    Jun 17, 2012
  • anon

    I am all for shipping any safe liquids including alcohol. When doing USPS water samples for field offices, I have to use FEDEX to ship the samples to the labs. This is revenue that USPS is putting in the hands of their competitors. As far as checking IDs for proof of age, that is the responsibility of the seller, not the shipper. I do have speciality wines shipped in from my wine club (CA & WA) to my home in MD and the packaging is very sound... never had a broken or leaking bottle. If Postal follows the same procedures that FEDEX and UPS utilizes, we should not have a problem.

    Jun 15, 2012
  • anon

    By all means, alcohol should be allowed to be sent through the mail. Does an adult need to sign for it? Does an adult need to sign for perscriptions? The answer is no. The Postal Service needs to seek out any means of new buisness. The biggest problem and enemies of the Postal Service is the House of Representatives. If they didn't hate the Post Office and the unions so bad all the problems could be fixed.

    Jun 14, 2012
  • anon

    I think the Postal Service should look more at periodical and standard discounted mail. Why give publishers discounts to walk sequence their mail and the P.O. turns around and runs it through our machines to comingle with other discounted mail

    Jun 14, 2012
  • anon

    I already see bottles of alcohol breaking open when we dump the container of parcels onto the feed belt on the APBS. There aren't many since they aren't supposed to be there anyway. I can imagine there will be many more breaking open if we're starting to deliver them. There needs to be some sort of rule that these parcels will be handled by hand only, or there will be lots of problems. The Postal Service should explore the possibility of shipping ammunition also. UPS and FEDEX ship these now and we're losing out on a lot of money. Ammo is safe to ship. None of our parcels are exposed to anything that would make it unsafe.

    Jun 14, 2012
  • anon

    This would seem to be a No Brainer. Is the Flat Earth Society running the show? Please, start modernizing by removing this restriction. As far as carding deliveries, somehow UPS and FEDup are doing it so it would seem possible somehow. Get cracking! Mark

    Jun 11, 2012
  • anon

    I THINK WE SHOULD OFFER SHIPPING OF ALCOHOL. I HAVE TO TURN REVENUE AWAY FROM THE RETAIL WINDOW AT LEAST 3 TIMES A MONTH. I KNOW THAT PEOPLE LIE ABOUT WHAT IS IN THEIR BOXES, SO IF WE MAKE IT LEGAL TO SHIP WE CAN MAKE SURE THE PACKAGE IS MARKED PROPERLY. IF WE MADE SPECIAL PACKAGEING JUST FOR ALCOHOL THEN WE WILL ENSURE IT GETS FROM POINT A TO POINT B IN ONE PEICE. I HAVE TO TELL PEOPLE TO CHECK WITH THE AIRLINES THEY ARE FLYING WITH, SOME OF THEM WILL LET THEM TAKE IT IF IT IS PROPERLY PACKAGED.

    Jun 11, 2012
  • anon

    I think we should look at all revenue possibilities, even if that requires a signature. We don't need to give profits to UPS & FedX and end up without a job. I see it as a great revenue for the post office.

    Jun 11, 2012
  • anon

    As far as handling alcohol, I think it would be a good revenue generator if the parcels containing the alcohol could be handled carefully to minimize damage and/or breakage. Would the entire parcel sorting procedure have to be revamped? Would the profits outweigh the costs to change the parcel sorting procedure? There are already way too many little committees in place that cost the postal service much more than the work/product they output.

    Jun 11, 2012
  • anon

    Why not? Anything that can be mailed safely and generate revenue is a great asset to the P.O. We should look into all suggestions and ideas with open eyes and try to save what congress is hellbent on destroying!!!

    Jun 11, 2012
  • anon

    I don't want it to be my job to card people for their parcels.

    Jun 11, 2012
  • anon

    I totally agree with you, Pat. Our business is to deliver, not to card our customers. That should be done at purchase time and not on our shoulders.

    Jun 11, 2012

Share this post


Recent Comments

  • Total Eclipse of the Stamp
    it reminds me of my mom she
    7 hours 58 min ago
    it reminds me of my mom she recently passed away and I know she watches me from upthere somewhere she magnanimous like the solar system her name was luz which means light in Spanish . I miss her...
  • Total Eclipse of the Stamp
    My first impression would be
    8 hours 35 min ago
    My first impression would be through two customers at CVS in Foster City, of the USO and C. Crane company. They were talking with me about the solar eclipse, but "you would have to be in Oregon...

Monthly Archive

Latest Blog Posts

Total Eclipse of the Stamp

Eclipse Stamp Image

Amateur astronomers are excited about the total solar eclipse set to appear (or disappear?) on August 21. This is the first time in 99 years a total solar eclipse will cross the entire United States. 

Capitalizing on the public’s excitement, the U.S. Postal Service...

Read More

Rethinking Assumptions

With $72 billion in revenue and 154 billion pieces of mail moved in a year, the U.S. Postal Service deals in the billions. That’s why you sometimes hear people joke that “a few million here and a few million there and pretty soon you are talking about real money” with the USPS.

But even...

Read More

Riding Out Fuel Fluctuations

How prepared is the U.S. Postal Service for a sudden increase in the price of diesel fuel? When diesel climbed by $2.03 a gallon from March 2009 to March 2012, the USPS’s fuel tab soared by $341 million.

It’s what happens when you operate one of the biggest vehicle fleets in the country:...

Read More

Latest Audit Asks

Is USPS efficiently and cost effectively consolidating mail between Chicago and San Francisco NDCs?

Mail Cargo Tractor Trailer Bed

The Postal Service has 21 network distribution centers (NDCs), which consolidate mail processing and dispatch to increase operational efficiency. At 19 NDCs, there are also consolidation deconsolidation facilities (CDFs). When the combined contents of one to three trailers exceed 100 percent of...

Read More

Is the Postal Service effectively using continuous improvement processes to make improvements?

The U.S. Postal Service uses continuous improvement methodologies based on collaborative team efforts to improve performance as well as systematically remove defects. The methodologies include the A3 process, Kaizen, and the Define, Measure, Analyze, Improve, and Control (DMAIC). 

We have...

Read More

How accurate is the Revenue, Pieces and Weight (RPW) sampling data?

The Adjustment Revenue, Pieces, and Weights (ARPW) system combines data from multiple sources to produce the Postal Service's official revenue, pieces, and weight (RPW) report for domestic and international mail categories, as well as fees by type of service.

The RPW report is published...

Read More

Twitter Feed

New #USPS eclipse stamp raises questions about #newtech the traditional #stamp community Read the #OIGBlog https://t.co/zJiqPfM3c6
May 22
What can #USPS do to maximize trailer capacity and reduce transportation costs? #AuditAsks wants to know https://t.co/sD82elCNJL
May 22
@Tony_Gupine Hi, the best way for us to solve this is to file a complaint with the OIG Hotline: https://t.co/9vaPJlFmfL
May 19
In the latest #AuditAsks, the #OIG wants to hear whether the #USPS's use of the Kaizen process is effective: https://t.co/k8zCpM4u8H
May 19
@RestorHer Hi, the best way for us to solve this is to file a complaint with the OIG Hotline: https://t.co/9vaPJlFmfL
May 18