Once upon a time.. US distribution system
Legacy of Prohibition, the distribution system in the United States is very complex. Before reaching the final consumer, the wines are marketed through many intermediaries. This system is so named THREE-TIER SYSTEM.
This triangular distribution system allows states to regulate the activity of the three players categories in the market of alcoholic products.
The first category gathers importers and producers who sell only to the second category, licensed distributors and wholesalers. The latter then resell to the third category: licensed retailers which have the right to sell alcoholic products to consumers over the age of 21 years (majority in the U.S.) and in specific places only, after paying certain taxes.
Importers, distributors, wholesalers and retailers are the KEY PLAYERS in the wine market in the United States. Each of them must hold a license. While the import license granted by the federal government is valid throughout the American territory, licenses distribution, wholesale and retail delivered at the state level are only valid on their territory, in their State. Each state has specific requirements generally. Therefore, for each imported product, it should work with at least one importer at the federal level and with a variable number of distributors, located in different states where the product will be marketed.
Because of all these intermediates, the marketing of alcoholic beverages is not easy and is also highly inflated retail prices. Thus a wine starting price of $ 5.83 will be impact by the commissions taken by importers of around 33%, followed by wholesalers and distributors ranging from 35 to 45% and finally with retailers for 33% . The selling price consumer after spending all these steps will have increased by almost 3.5 times to $ 20. What deterred many operators in the industry to expand into the U.S. market!
Moreover, we saw that each state has its own requirements. The free movement of alcoholic beverages entered States is not yet for today. Thus, in 16 states, the prohibition remains in force, only seven states can mutually deliver wine while the rest, the majority are states where direct selling is limited.
Consequently, and since 1998, "FREE THE GRAPE" is now the spokesman for producers, consumers, retailers and also of inter California. Their goal? Weight against the government and legislators to liberalize the movement of wine in the U.S. States. Through flyers, mailing campaign, the Facebook social network, the goal is to recruit the largest number for this cause and to swing legislation in the right direction which is as we have seen far from certain!
