Beer Purchase And Distribution

Question 1

By law, what system governs the sale and distribution of alcoholic beverages in the United States?

Answer 1

The three tier system

Question 2

Who are the actors in the three tier system?

Answer 2

Brewers / importers, wholesalers, retailers

Question 3

How do alcoholic beverages reach consumers in the 3-tier system?

Answer 3

Brewers/ importers sell to wholesalers, wholesalers sell to retailers, retailers sell to consumers

Question 4

What is the ‘direct sales’ system?

Answer 4

A legal exception to the 3 tier where the brewer sells directly to consumers. An example is a brewpub (combo of restaurant/ brewery like IA) where at least 25% of product is sold onsite.

Question 5

What is the 2-tier system?

Answer 5

The 2nd legal exception to the three tierwhere the brewer sells to the wholesaler. This is typically done by local, craft breweries.

Question 6

What is the purpose of the 3-tier system?

Answer 6

Product safety, state and federal tax collection, and to keep the financial interests of each tier separate to prevent market domination

Question 7

What are three ways to help proper rotation of product?

Answer 7

1: sell beer in order of dating
2: remove out of date product
3: promote all beers available