The means by which wine and spirits products move from producer-supplier to end seller (stores, bars, and restaurants). In the U.S., the 21st Amendment to repeal Prohibition created a separation between the producer and the retailer that resulted in a three-tier distribution structure. At the same time, each state was delegated the responsibility for regulating and managing the process within their borders. Suppliers, brokers, distributors, and retailers are required to comply with the individual transport, pricing, taxation, solicitation, and credit laws in the state in which they are conducting business. Generally goods flow from a producer, marketer, or importer to a state or county distributor, who then sells to wine and liquor retailers, bars, and restaurants. There are 19 "Control States" where the state government is the exclusive access to that market, in some cases acting as distributor and retailer. Different regulations and restrictions often apply to wine vs. spirits. Because of the controlled nature of beverage alcohol products, wine and spirits distribution systems vary from country to country, with some showing resemblances to the U.S. three-tier model and some utilizing more direct two-tier systems.

Contributed By:

Martin Jones
President
Artisan Source, LLC.