The 3-Tier System of State-Based Alcohol Regulation

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The 3-Tier Systemof State-BasedAlcohol
Regulation
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What is 3-Tier System?

• Brewers/Suppliers/Importers
• Distributors/Wholesalers
• Retailers

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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.

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• REGULATION

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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

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• CONSUMER SAFETY

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Add headlines here
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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

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DeGette Quote
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Transparency

• Federally-registered manufacturers
• Distributors licensed by state feds
• Retailers licensed by state
• Sell to legal drinking age consumers
• Chain of custody
• Enforce regulations

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Accountability

• Efficiently collect taxes
• Monitor product from manufacture to retailer

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Variety, Choice Selection

• 13,000 labels of beer
• Equal access to market
• Level playing field

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Economic Contributions

• 91,000 jobs
• Solid wages
• Good benefits
• Healthcare

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Economic Contributions

• 90 billion contributed to the economy by the
  3-tiers of the beer industry
• 900,000 total jobs
• 25 billion in wages
• 36 billion in taxes generated

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STOP Act
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Strengths of U.S. Alcohol Distribution System

• Testing of product by state and federal
  government
• 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

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The 3-Tier Systemof State-BasedAlcohol
Regulation