Archive for the ‘Three Tier System’ Category
Since the Uber purchase of local alcohol sales platform Drizly for $1.1 billion earlier this month, there has been talk and speculation that the food and people delivery service will be in a position to disrupt the three-tier system of alcohol distribution. While this would be a nice and welcome development, there is virtually no chance of this kind of disruption occurring as a result of this merger. Here’s why. First, it’s essential to appreciate the “three-tier system” for what…
In a previous post, I expounded on why and how the three-tier system is retarding the growth of the alcohol industry primarily through the state mandates that require all alcohol to flow through a middleman wholesaler before it can reach the retail shelves and restaurant lists. I also discussed some of the forces that are defending this tired system, in particular many state regulators. At the end of that post, I promised a roadmap for dismantling the three-tier system. The…
One thing is absolutely clear about the alcohol industry: Its primary form of regulation, the “three-tier system,” is so fundamentally flawed that today it serves mainly to retard the growth of the alcohol industry, acts as a barrier to small and medium-sized alcohol producers from entering markets around the country, and acts to increase the political and financial power of a very small group of middlemen wholesalers. Yet, this destructive system of regulating the sale and distribution of alcohol continues…
The point of identifying trends is to help hedge one’s future risk. If we can predict what will come we are more likely to flourish where there is a real risk of being overrun by events. As I have for many years, here I look ahead a year to two out and attempt to articulate how current trends will impact the wine industry. In some respects, this year’s foray into predicting the future is easier than in past years. For…
It is worth noting that the pandemic-induced re-invigoration of discussion concerning alcohol regulation is a phenomenon we don’t see happening in any other industry. Whether the topic is interstate alcohol shipping, producer self-distribution or restaurant sales of drinks for takeout, this kind of increased consideration of industry reform is of a type that few if any other industries besides alcohol are having. The only plausible explanation for alcohol’s unique response to the pandemic is the fact that so much of…
