wine distributors

Role Of A Wine Distributor

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ROLE OF A WINE DISTRIBUTOR


Wine Distributor: What is the role of a wine distributor?We are focusing on USA wine market as in most other parts of the world a winery or an importer can also distribute wine to the retailers.USA has a three-tier law where every alcoholic beverage must flow from a winery or wine importer to a wine distributor or say wine wholesaler and finally to the wine retailer. At all levels mark up is added. But the good news is import taxes are much lower than many parts of the world and thus you see US as one of the biggest wine markets in the world.

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ROLE OF A WINE DISTRIBUTOR




• Job of a wine distributor is very state specific where most of the states allow only one wine distributor per brand. Thus a retailer can only buy that wine from its respective wine distributor for the respective state they are registered for.

• The American three-tier distribution system is governed by the 21st Amendment of the United States Constitution. When the U.S. Congress first passed this law in 1933, this historic Constitutional Amendment overturned the infamous 18th Amendment to the U.S. Constitution, passed 14 years before in 1919.

• Wine Wholesaler / Wine Distributor Information Resources (Source TTB.gov)

• Applying for a Permit - If you plan to purchase and sell alcohol at wholesale, you must first obtain a Basic Permit from TTB.Alcohol Wholesaler Application Packet - Wholesalers (WHL), businesses which sell beverage alcohol products at wholesale to other wholesalers or retailers must first obtain a Wholesaler's Basic Permit.


http://www.ttb.gov/itd/exporting_alcohol.shtml

http://www.ttb.gov/importers/importer_wholesalers.shtml

http://www.ttb.gov/applications/wholesaler_packet.shtml


Producers or manufacturers of beverage alcohol products need to apply for a Wholesaler's Basic Permit only if they intend to sell beverage alcohol products which they did not produce or manufacture.

Wholesaler/Importer (Alcohol): Businesses which require a Basic Permit for Importing (to import and distribute foreign beverage alcohol) and Wholesaling (to distribute at wholesale, domestic beverage alcohol) from the same location may reduce the required paperwork by combining the applications.

http://www.ttb.gov/applications/wholesaler_importer_packet.shtml

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