Kentucky's wine and spirits wholesalers are an integral part of a state-based system of checks and balances known as the three-tier system. In general, alcohol must move from a licensed producer (e.g., distillery, winery or brewery) to a licensed wholesaler or distributor to a licensed retailer (e.g., liquor store, bar, or restaurant). This level of regulation is important because alcohol isn't just any other consumer good - it's a highly sensitive product that demands a deep level of respect and care.
For over 100 years prior to the end of prohibition, the U.S. struggled with how to regulate alcohol - large suppliers controlled the market, consumption was out of control, counterfeit and dangerous products were rampant, and society paid a huge price. These same issues continue to plague other countries today. The current alcohol distribution system protects the supply chain so Kentuckians can be confident that the alcohol they're consuming is legitimate, safe and fresh. An independently-tiered, state-licensed system of privately-owned companies is also a big win for consumer choice - an astounding 36,000+ brands of alcohol are currently distributed in Kentucky today. The Wine & Spirits Wholesalers of Kentucky is a fierce advocate for responsible alcohol policy to protect consumers, state and local governments, and all tiers of the alcohol industry. Cheers to Three Tiers
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Tier 1 - Producers
Beverage alcohol products are produced at wineries, distilleries and breweries. Kentucky is a major spirits producer, as it is known as the bourbon capital of the world.
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Tier 2 - WholesalersWholesalers market and deliver beverage alcohol products to thousands of retail locations in Kentucky. They also collect millions of dollars in state excise taxes.
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Tier 3 - RetailersRetailers throughout Kentucky sell beverage alcohol products to the public, including on-premise (bars, restaurants, hotels) and off-premise (liquor and retail stores) locations. They also collect a state retail sales tax and a local regulatory fee in many cities and counties.
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