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:
“The man who pretends that the distribution of income in this country reflects the distribution of ability or character is an ignoramus. The man who says that it could by any possible political device be made to do so is an unpractical visionary. But the man who says that it ought to do so is something worse than an ignoramous and more disastrous than a visionary: he is, in the profoundest Scriptural sense of the word, a fool.”
—George Bernard Shaw (1856–1950)