Category: Economics

Three-Tier System of Alcohol in U.S. Causes Competing Interests of Producers, Distributors & Retailers

The US repealed National Prohibition in 1933. Federal law then established the three-tier system. This mandates complete separation of alcohol production, wholesaling, and retailing. The three tier system means that producers cannot either wholesale or retail alcohol. Similarly, wholesalers cannot be producers or retailers. And retailers cannot wholesale or produce alcohol. This separation means that the economic …

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