Three Tiers

In the US, alcohol is regulated by what we call the 3 tier system. Those tiers are suppliers, distributors or wholesalers, and retailers. This was set up post-Prohibition as a way to avoid tied house situations, something that is still allowed throughout most of Europe and the rest fo the world.

However, as anyone working the US market can tell you, the three tier system looks very different depending on the state you’re in. For states like Pennsylvania and Utah, the state takes the place of the wholesaler and controls what brands are allowed for sale in the state. Others, like California and Florida, have a number of distributors competing in the market and working to support as many brands as possible.