When prohibition ended in 1933, the three-tiered system was adopted to ensure the safe manufacture, fair distribution and broad selection of alcohol products. Each tier in this model is separate and independent, ending the former “tied-house” arrangements where the manufacturer controlled what its’ bars or stores sold and charge.
The “tied-house” system encouraged over-consumption, increased risk of tainted alcohol and kept smaller breweries out of the market.
Today, along with quality control, the distributor also collects and distributes taxes to the proper entities. In addition, this system opens markets to more options for consumers.
The “tied-house” system encouraged over-consumption, increased risk of tainted alcohol and kept smaller breweries out of the market.
Today, along with quality control, the distributor also collects and distributes taxes to the proper entities. In addition, this system opens markets to more options for consumers.