The History of the Three-Tier System

The distribution system designed by most states to regulate alcohol has been identified as the “Three-Tier System.” Since its inception, it has proved to be a practical and effective method of distribution consisting of the supplier, the wholesaler and the retailer. It came to life after the 18th Amendment of the U.S. Constitution ushered in Prohibition, the result of a free-market system where alcoholic beverages were sold through only the supplier and the retailer.  Suppliers of the pre-Prohibition era, although small, tended to be more profitable. Read More