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The 3-Tier System of State-Based Alcohol Regulation. What is 3-Tier System?. Brewers/Suppliers/Importers Distributors/Wholesalers Retailers. 3-Tier System. To facilitate state and local control To generate tax revenues that can be collected efficiently from the industry
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What is 3-Tier System? • Brewers/Suppliers/Importers • Distributors/Wholesalers • Retailers
3-Tier System • To facilitate state and local control • To generate tax revenues that can be collected efficiently from the industry • To promote temperance, moderation and an orderly marketplace • To avoid the overly aggressive marketing and sales practices of the pre-Prohibition era.
3-Tier System • Licensed by state and Feds • Alcohol not like gum or toothpaste • Alcohol beverages are unique • “One-size-fits-all” does not work
Other Countries • 40,000 Russians die annually of poisonous alcohol • Nearly 60% of liquor found in Chinese cities is fake • 125 Die in India after drinking illicit liquor
Transparency • Federally-registered manufacturers • Distributors licensed by state & feds • Retailers licensed by state • Sell to legal drinking age consumers • Chain of custody • Enforce regulations
Accountability • Efficiently collect taxes • Monitor product from manufacture to retailer
Variety, Choice & Selection • 13,000 labels of beer • Equal access to market • Level playing field
Economic Contributions • 95,000 jobs • Solid wages • Good benefits • Healthcare
Economic Contributions • $86 billion contributed to the economy by the 3-tiers of the beer industry • 1 million total jobs • $28 billion in wages • $36 billion in taxes generated
Strengths of U.S. Alcohol Distribution System • Transparency & accountability • Clear chain of custody to consumer • Dual regulation by state and federal governments • Distributors prevent entry of corrupted product to retail • System protects consumers, brand owners and retailers