The “three-tier system” in the alcohol industry refers to a regulatory structure where producers (like breweries, distillers, and wine manufacturers) can only sell their products to distributors (wholesalers), who then can only sell to retailers (like bars and liquor stores), and only retailers can sell directly to consumers; essentially preventing any single entity from controlling multiple tiers of the distribution process, ensuring market competition and consumer protection.
Where does Selten Wine fit into the 3 Tier System?
- Tier 1 – Wine Manufacturer (our wine manufacturer makes Selten Mulled Red according to our specifications for our customers) can sell to….
- Tier 2 – Wine Wholesalers (that’s us, Selten Wine!), and we then sell to….
- Tier 3 – Wine/Liquor Retailers (your neighborhood licensed bar/restaurant/festival), who are allowed to sell to…
- the Consumer (that’s You)!
For more information on the three-tier system, check out the National Alcohol Beverage Control Association (NABCA)’s white paper on the topic, found here.