Three-tier Distribution
Following the repeal of Prohibition, the federal government allowed each state to regulate the production and sale of alcohol in their own state. For the majority of states this led to the development of a three-tier distribution system between the producer, wholesaler and consumer. Depending on the state there are some exceptions, with wineries allowed to sell directly to consumers on site at the winery.
Some states allow interstate sales through e-commerce. In the 2005 case of Granholm v. Heald, the Supreme Court of the United States struck down state laws banning interstate shipments but allowing in-state sales. The outcome of the Supreme Court decision was that states could decide to allow out of states wine sales along with in state sales or ban both altogether.
Convenience stores are a large distributor of wine in the United States. In 2010, the average monthly per-store sales of wine jumped to nearly $12,000 from $9,084 in 2009. The average gross margin dollars from wine increased to $3,324 from $2,616 in the year prior, with gross margin percentages up to an average 28.2 percent in 2010, versus 27 percent in 2009.
Read more about this topic: American Wine
Famous quotes containing the word distribution:
“There is the illusion of time, which is very deep; who has disposed of it? Mor come to the conviction that what seems the succession of thought is only the distribution of wholes into causal series.”
—Ralph Waldo Emerson (1803–1882)