The government licenses alcohol distributors and allows them to sell alcohol to retailers. Retailers must posses an alcohol license to buy alcoholic beverages. The three-tier system that regulates alcohol wholesalers and liquor distributors actually helps smaller companies to get into the market while allowing the government to regulate the sale and collections of taxes on alcohol. Alcohol wholesalers and liquor distributors work hard to build a variety of alcoholic beverages from different sources of origination. A small mom and pop company from Colorado finds a distributor and sells their product across the state or through several states depending on where the distributor holds licenses.
With the three-tier system, an alcohol producer must sell alcoholic beverages to a liquor distributor who then sells to a retailer. The government defines a producer as anyone who brews beers or malted beverages, makes wine, distills alcohol or imports alcoholic beverages. The government allows wineries and brewpubs to both produce and retail alcoholic beverages. These two producers are the only exemptions from the three-tier system.
Become an alcoholic beverage distributor to wholesale alcohol
As a distributor, you get to find new products, promote products and work with large established companies. The three-tier system ensures your job security. You do need to be prepared for competition from larger companies, but a unique line helps you enter the industry successfully.
I recommend: Fill out
IRS Form SS-4 to get your Employer Identification Number (EIN) before you apply for permits, licenses or applications. Once you have your EIN, visit the Alcohol and Tobacco Tax and Trade Bureau's (TTB) website to get the required
forms, permits and applications for becoming a distributor.
Locate alcohol distributors actively seeking to sell and buy wholesale liquor
Many distributors join trade associations and post specific requests on the association's website. Reviewing the posts narrows your target search to distributors in need of your product. The posts also indicate producers looking for distributors.
I recommend: The International Beverage Network's
Call to Tenders provides posts from companies seeking suppliers.
World Marketplace offers new products and complete descriptions from companies seeking distributors.
Join a trade association to boost business
Trade associations connect producers, importers, distributors and other professionals in the alcohol industry. With a trade association, you boost business by marketing to the people most interested in your profession. Trade associations keep members up-to-date on changes to the industry, especially legal changes.
I recommend: Register your company with the International Beverage Network (IBN), one of the world's largest networks for alcoholic beverages, or join
National Beer Wholesalers Association (NBWA). You can find information on existing members by visiting
IBN's World Directory.
NBWA's Directory lists associations by state.
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