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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 - PowerPoint PPT Presentation
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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
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
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
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