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)

  • 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

Recent Comments

Share this post


Monthly Archive

Latest Blog Posts

Test Driving Left-Hand Drive Vehicles

It’s not easy to find something the entire postal community can agree on. But the U.S. Postal Service’s need to replace its delivery vehicles just might get all heads nodding.

Given package volume growth, the Postal Service needs vehicles with increased cargo-handling capacity to replace...

Read More

It’s SARC Time!

It’s that time of year again, when we release our Semiannual Report to Congress (SARC) — a twice yearly look at our work that reflects our mission of ensuring efficiency, accountability, and integrity in the U.S. Postal Service.

Through the first six months of this fiscal year, we issued...

Read More

To Everything – Reduce Churn, Churn, Churn

Customer retention blog art

It’s a lot less expensive to retain a current customer than to acquire a new one. That’s a timeless marketing adage for a reason: it’s true.

In fact, it may never be truer than in today’s economy. Customers have an unprecedented array of choices and easy access to global products and...

Read More

Latest Audit Asks

Are Contracting Officers Properly Managing Requirements for HCR Contracts?

Highway transportation is the surface transportation of mail by means other than bus, rail or water. Service may be between two or more designated points (over the road) or in a local metropolitan area (shuttle service). Highway transportation contracts may include requirements for in-route...

Read More

Is USPS management maintaining appropriate security over IT at Baltimore P&DC?

The Postal Service’s mail processing resources, information technology network, and transportation infrastructure delivers mail to every residential and business address in the country. The mail processing resources include facilities, equipment, and systems used to process, transfer, and store...

Read More

How Clean, Safe, and Secure are Postal Service Processing Plants?

The Postal Service has over 300 processing plants where more than 150 billion pieces of mail are sorted each year. The OIG has recently conducted a series of audits on facility conditions at retail facilities and is now looking at processing facilities nationwide. The safety, security and...

Read More

Twitter Feed

#USPSOIG currently has #openvacancies for multiple positions. Interested in learning more? Visit https://t.co/uf0UpqSOLZ
Jun 22
We are committed to supporting integrity within #USPS and protecting the interest of postal customers. Check out ou… https://t.co/SpSmaQ2enD
Jun 21
Intermediary In Fraudulent Money Order Cashing Scheme Sentenced To 20 Months In Prison https://t.co/MUIkx1HmNO @USAO_NJ
Jun 21
Our recent #OIGAudit report assessed measures #USPS has implemented to prepare its workforce for the risks posed by… https://t.co/z8BZuGYYuM
Jun 20
Our #AuditAsks wants to know if #USPS contracting officers effectively managing insurance requirements for the High… https://t.co/pO29ksqTsr
Jun 19