The 3 Tier System of StateBased Alcohol Regulation

The 3 -Tier System of State-Based Alcohol Regulation

What is 3 -Tier System? u Brewers/Suppliers/Importers u Distributors/Wholesalers u 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

Add headlines here

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

De. Gette 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 • 91, 000 jobs • Solid wages • Good benefits • Healthcare

Economic Contributions • $90 billion contributed to the economy by the 3 -tiers of the beer industry • 900, 000 total jobs • $25 billion in wages • $36 billion in taxes generated

STOP Act

Strengths of U. S. Alcohol Distribution System • Testing of product by state and federal government • 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-Based Alcohol Regulation