Driving Competition, Providing Control, Protecting the Public
The citizens of Michigan benefit from a system of control of alcohol that balances public safety and competition. With roots dating back to the repeal of prohibition, today's licensed three-tier system results in the transparent and accountable commerce of beer and wine, provides control of the products as demanded by the public and offers tremendous choice at competitive prices.
The independence of each tier (brewers/vinters, distributors and retailers) prevents the formation of vertical monopolies and corrupt sales practices in teh beer and wine industries. The licensing of individuals/companies who engage in teh manufactuer, distribution and sale of alcohol, coupled with the enforcement capabilities inherent in such a system, help to prevent sales to minors, drunk driving and excesive consumption.
Historical and Modern Day Benefits to the Three-Tier System:
- Distributors help ensure compliance with Michigan's laws and regulations relating to the sale and distribution of beer and wine.
- The system creates an efficient framework for ensuring the protection and collection of state excise taxes.
- The system makes the bottle bill work by requiring distributors to pick up empty containers from every retail location in their assigned territories.
- The beer and wine distributor is the link to beverages brought in from out-of-state which need to be tracked through the system in the event of tainted product and the need for a recall.
- The beer adn wine distributor creates a paper trail for tracking sales, discouraging "gray market" activity (purchases from unauthorized sources).
- As local community activists, beer and wine distributors work with other local groups to reduce underage consumption and drunk driving.
The three-tier system also creates market efficiencies. The independent distributor has an incentive to maintain a diverse product portfolio and to buy from many brewers for sale to ALL licensed retailers. This gives the consumer the widest of product choices, from the major brands to micro-brewed specialty products at competitive prices.