An Intro to Distribution Agreements

By on July 3, 2018

As a craft distiller, getting your products into the hands of consumers is, of course, critical to your business. As a general matter, state alcohol laws separate the alcohol beverage industry into three tiers (i.e., the three-tier system): the supplier tier, the wholesaler tier, and the retailer tier. To get its product to market, a supplier typically must sell to a wholesaler, which then must sell to a retailer.

Of course, state laws today contain a number of expectations to the three-tier system – for example, many states now license pub distilleries, which may produce spirits on-site (typically a function of a retailer). But generally speaking, a distiller must sell its products through wholesalers. This article will explore the terms that govern the relationship between a distiller and its wholesaler.

Read the full article.

Originally published in Artisan Spirit, Summer 2018.

Bethany HatefBethany Hatef
    Bethany (Beth) K. Hatef advises clients on a wide variety of regulatory and distribution issues in the alcohol beverage industry. Beth regularly counsels alcohol industry clients on federal and state requirements relating to the production, marketing, distribution and sale of beer, wine and spirits. Read Beth Hatef's full bio.

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