What is beverage distribution?


Quick Answer

Alcoholic beverage distribution follows a three-tier system in all but 18 states in the United States. This distribution system seeks to prevent a monopoly in the production and sale of alcoholic beverages and secure an accurate collection of taxes.

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Full Answer

Breweries, wineries and distilleries compose the first tier of the beverage distribution system. These beverage manufacturers market their products to wholesalers, which make up the second tier of this system. Wholesalers for the beverage industry fall into the categories of distributors, licensed importers and control boards. These wholesalers serve as vendors for the system's third tier, retailers such as restaurants, bars and liquor stores.

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