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Beer, wine and spirits distributors play a key role in the three-tier system that regulates the sale of alcohol, making the system accountable and transparent. Their work is important to ensuring healthy competition between manufacturers, providing consumers with a wide selection of affordable products, and ensuring that only the freshest, highest quality products are sold to consumers.
In Minnesota, there are 76 beer, wine and spirits distributors, all of which are family-owned. They aim to help Minnesotans celebrate life's important moments while protecting consumers and the greater public interest. Distributors also have a significant economic impact in Minnesota through jobs, support of small businesses, and an expanded tax base. In 2006, the Minnesota beer industry as a whole provided more than 39,200 jobs and paid nearly $700 million in taxes.
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All 50 states have adopted a three-tier system to regulate the sale of alcohol. The three-tier system includes:
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Manufacturers
(breweries, vineyards and distilleries)
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Distributors
(wholesalers)
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Retailers
(on-sale and off-sale alcohol outlets)
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Each level of the system is independent of the others.
Distributors serve as a buffer between manufacturers and retailers in the three-tier system. Without distributors, alcohol manufacturers could be in a position to exert excessive influence over retailers.
The three-tier system ensures that alcohol is sold only to licensed retailers, laws are followed, and proper taxes are paid. This provides for appropriate access to alcohol, which is tied to moderate, more responsible consumer use. In turn, this moderate use ensures lower levels of excessive drinking, underage drinking, and drunk driving.
The three-tier system has been ensuring transparency and accountability in the beer, wine and spirits industry for 75 years.
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