The Three-Tier System of Alcohol Regulation

Getting to Know the Three-Tier System

The Three-Tier System of alcohol regulation has provided Americans safe access to alcoholic beverages for almost a century.  

Under the system, alcoholic beverage producers, both large and small, sell their products to distributors who, in turn, sell and safely distribute those products to retailers, including local small businesses like bars, restaurants, and independent beverage alcohol stores. 

This system prevents monopolies from dominating the market and creates competition amongst manufacturers who provide consumers with an ever-expanding number of beer, wine, and spirit options at affordable prices. 

At the same time, a carefully constructed system of checks and balances verifies proper licensing and provides accountability for operators, ensuring consumer safety and confidence in the marketplace.