As the law currently stands, the Direct Shipping Act of 2024 (or “Senate Bill 1041”) authorizes in-state breweries to deliver beer shipments to residents, while it expressly prohibits out-of-state breweries from doing same.[1] Although delivery is authorized for in-state brewers, Senate Bill 1041 (“SB 1041”) is still limiting, as it requires them to not only obtain a “direct beer delivery” permit, but also use their own employees for deliveries, rather than common carriers like UPS or FedEx.[2] Varietal Beer Company (“Varietal”) and Mirage Brewing Company (“Mirage”) are two out-of-state breweries who found this out the hard way.[3] The two companies received orders from Maryland consumer Douglas Furlong, (“Furlong”) but were forced to deny the requests because of this act.[4] Furlong, Varietal, and Mirage (collectively the “Plaintiffs”) brought suit, challenging the constitutionality of SB 1041, arguing that it’s a violation of the Commerce Clause of the United States Constitution, which affords Congress the right to regulate commerce among states.[5] The Honorable Anthony G. Brown (“Brown”), and Jeffrey A. Kelly (“Kelly”) (collectively the “Defendants”) argue on behalf of Maryland and the Maryland Alcohol, Tobacco, & Cannabis Commission.[6] Should this bill become law, this could fundamentally reshape Maryland’s beer market, by giving local breweries head-to-head competition in the rapidly growing direct-to-consumer industry.

Defendant’s maintain that SB 1041 is essential to their three-tiered alcohol regulation system which serves to protect public health and safety related to the consumption of alcohol in Maryland.[7] Under this system, alcohol can only reach consumers once it has first passed through the producer tier, (breweries, wineries, distilleries), then through an independent wholesaler tier, and lastly, through a retailer tier.[8] Defendant’s assert that this three-tiered system is necessary to regulate alcohol consumption in Maryland, and is therefore, constitutional.[9] Plaintiffs contend that the Maryland direct-beer-delivery permit, explicit prohibition on direct beer delivery by out-of-state producers, and the in-house employee delivery requirement directly discriminate against out-of-state beer producers.[10] These restrictions, the Plaintiffs argue, bar them from both participating equally in and accessing Maryland’s direct beer-delivery market, and are therefore, unconstitutional.[11]

To evaluate the constitutionality of alcohol regulations, courts apply a two-step balancing test.[12] First, courts look at whether the challenged statute discriminates against interstate commerce, and if so, whether the statute can be justified on the grounds that it truly protects public health and safety.[13] As this case is at the summary judgement stage, neither side has presented sufficient evidence for the court to decide as a matter of law the constitutionality of SB 1041.[14] In light of the public safety and constitutional concerns at issue, the court is giving the parties the opportunity to argue their respective sides and create a full evidentiary record.[15] As such, this case has been set for a two-day bench trial in December 2025.[16]

If SB 2041 is enacted, consumers would gain broader access to an array of craft beers, causing in-state breweries to be in direct competition with any outside brewer. Maryland would likely see an increase in consumer sales, which could generate tax revenue, and may create new employment opportunities in the delivery world. The trial’s resolution could directly shape how easily Maryland residents can order and enjoy craft beer from beyond state lines, while in the comfort of their own home. If you are a craft beer aficionado, substantial changes could be coming your way soon.

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Katelyn White is a third-year evening student at the University of Baltimore School of Law and is a Staff Editor for Law Forum. Katelyn serves as the Vice President of the Real Estate Law Association and as a student representative for the MSBA Real Property Section. Katelyn also works full time as a law clerk for Semmes, Bowen & Semmes. She earned her Bachelor of Arts in English from Washington & Jefferson College. She expects to graduate May 2027.

[1] See Furlong v. Brown, No. CV RDB-23-2045, 2025 WL 2208162, at *2-3 (D. Md. Aug. 4, 2025).

[2] Id.

[3] Id. at *2.

[4] Id.

[5] Id. at *1, *5.

[6] Furlong, 2025 WL 2208162, at *2.

[7] Id. at *10.

[8] Id. at *3.

[9] Id. at *6.

[10] Id. at *7.

[11] Furlong, 2025 WL 2208162, at *7.

[12] Id. at *8.

[13] Id.

[14] Id. at *10-11.

[15] Id. at *11.

[16] Ian Round, Judge Orders Trial in Case over MD Law Banning Out-of-State Breweries from Shipping to Consumers, The Daily Rec. (Aug. 15, 2025), https://thedailyrecord-com.proxy-bl.researchport.umd.edu/2025/08/15/maryland-brewery-shipping-law-trial/ (on file with University of Baltimore Law Forum).