Overview

Since the United States repealed Prohibition with the 21 st Amendment, each state was granted the right to control the importation, distribution and use of alcoholic beverages within its borders. Florida has since, like many other states, relied on the three-tier alcohol distribution system to ensure safe and responsible alcohol distribution and consumption.

Historical Background

Before 1919

In 1919 the 18 th Amendment brought about Prohibition. Before this year, as far back as colonial times, alcoholic beverages were sold in a free market system with only two tiers—suppliers sold directly to retailers. This resulted in an alcohol industry that owned or controlled retailers, threatening to cut off all supply or offering rebates only to those who complied with their demands. This also tied the hands of retailers, often being forced to only sell one manufacturer’s brand without regard to the public.

Prohibition

The American Temperance Union and the Anti-Saloon League urged lawmakers to outlaw the sale and possession of alcohol, resulting in the 18 th Amendment to the Constitution. Prohibition did not signify the end of alcohol, but the beginning of a powerful black market. Production and distribution went underground through a “bootlegging system” proving Prohibition was not a functioning system.

Repeal of Prohibition

The 21st Amendment repealed prohibition in 1933, granting states the authority to control the importation, distribution and use of alcoholic beverages within its boundaries. Florida, like many other states, decided upon the three-tier system to prevent the abuses seen prior and during Prohibition.

How the three-tier system works

The current three-tier system in Florida ensures responsible and accountable distribution of alcohol within our borders.

Tier One

International alcohol producers or manufacturers sell their products to Florida-based, licensed beverage distributors and wholesalers (tier two).

Tier Two

Licensed Florida distributors and wholesalers sell only to properly licensed retailers (tier three).

Tier Three

Licensed retailers in turn sell alcoholic beverages to consumers 21 years of age or older where sales are allowed and after the proper collection of state taxes.

The three-tier system is a safeguard that ensures this system of “checks and balances” distributes alcohol responsibly and safely. These authorized channels control the alcohol entering our state, creating a system that Florida regulators and law enforcement can monitor and enforce.

Why it works

The three-tier system prevents the unlawful sale of alcohol through unregulated, unaccountable channels. The alcohol is thus delivered responsibly to the retailers licensed and accountable to sell it. Florida distributors and retailers comply with the three-tier system for risk of losing their licensing and livelihood. What better incentive than accountability can a state provide?

While Florida companies are accountable, out-of-state companies seeking to bypass the three-tier system are not. They wish to go around the system through direct shipments of alcohol sold across state lines, over the Internet or through catalogs, to any consumer with a credit card. Out of Florida ’s three-tier system jurisdiction, they are not held accountable for violating state laws, including selling alcohol to minors.