The 3-Tier System of State-Based Alcohol 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 91,000 jobs Solid wages Good benefits Healthcare
$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 Economic Contributions
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