FREQUENTLY ASKED QUESTIONS

A beer and wine distributor is a critical link in the Three-Tier System of alcohol distribution. They purchase alcoholic beverages from suppliers (breweries, wineries, etc.) and distribute them to licensed retailers, such as grocery stores, bars, and restaurants. They work hard to help new brands get to market, ensuring consumers have a wide variety of options.

The 21st Amendment to the United States Constitution gives states total authority to regulate alcohol. While each state has different laws regulating alcohol, most states have a Three-Tier System.

The Three-Tier System for distribution of beer and wine is the bedrock of Michigan’s alcohol regulatory structure. Under the system, a brewery or winery sells to a distributor, who in turn sells to a licensed retailer.

Operating under state regulations, beer and wine distributors fulfill a crucial role in providing consumers with an expansive selection of choices. They are dedicated to upholding the highest standards of quality, ensuring exceptional value for consumers while diligently safeguarding public interests. Through their unwavering commitment, they play a vital role in preserving the integrity of the Three-Tier System and the overall health of Michigan's alcohol industry.

• Creates competition and provides a level playing field for all.
• Prohibits one entity from being licensed in or having an ownership interest in another tier.
• Prevents vertical monopolies, price-fixing, and other anti-competitive behavior. This ensures that all brands, large and small, have access to the market.
• Provides for efficient collection of state excise taxes.
• Provides a tremendous variety of beer and wine brands and styles to licensed retailers at a great value while protecting the public.
• Ensures that beer and wine are traceable; if there is a suspected problem with a product, distributors can efficiently track the identified product in a timely manner and pull it from the marketplace. This helps protect consumers from counterfeit and poisonous alcohol that is prevalent in many other countries that lack an effective regulatory structure.

Click here for Michigan wholesale license requirements and general information.

Complaints can be submitted to the MLCC Enforcement Division. All fields must be completed for the enforcement team or local police officers to investigate properly. Your name, telephone number, and email address will be kept strictly confidential. You may also file a complaint by calling the MLCC Enforcement hotline, toll-free, at 866-893-2121.

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