The 3-Tier System

of State-BasedAlcohol 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

• To promote temperance, moderation and an orderly marketplace

• To avoid the overly aggressive marketing and sales practices of the pre-Prohibition era.

REGULATION

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

CONSUMER SAFETY

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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

DeGette Quote

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

• $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

Economic ContributionsEconomic Contributions

STOP Act

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

The 3-Tier System

of State-BasedAlcohol Regulation