The three-tier system of alcohol distribution is the system for distributing alcoholic beverages set up in the United States after the repeal of Prohibition. The three tiers are importers or producers; distributors; and retailers.

What is the three-tier system in history?

In historical terms, the three-tier system is a product of attempts at reforming the regulation of alcohol sales around the time of the Twenty-First Amendment, which ended Prohibition.

What states use the three-tier system?

Seventeen states—Alabama, Idaho, Iowa, Maine, Michigan, Mississippi, Montana, New Hampshire, North Carolina, Ohio, Oregon, Pennsylvania, Utah, Vermont, Virginia, West Virginia and Wyoming—along with Montgomery County, Md., are classified as control states because they operate the distribution tier and also may ...