Producers: This tier includes breweries, distilleries, and wineries that produce alcoholic beverages. They can only sell their products to licensed distributors. In some states, there are exceptions where producers can sell directly to consumers through tasting rooms or on-site retail outlets (known as “self-distribution”).
Distributor: Also known as wholesalers, distributors act as the middlemen between producers and retailers. They purchase alcoholic beverages from producers and sell them to licensed retailers. Distributors are responsible for transporting, storing, and marketing the products they handle. This tier adds a layer of control and oversight to the movement of alcohol.
Retailer: The final tier consists of businesses that sell alcohol directly to consumers, such as liquor stores, bars, restaurants, and supermarkets. Retailers can only purchase alcohol from licensed distributors and are regulated by local and state laws regarding sales.