Beer, Wine & Spirits | Distribution | Heidelberg Distributing

The Three-Tier System

The passage of the 21st Amendment to the U.S. Constitution in 1933 repealed Prohibition in the United States and also – for the first time – granted wide authority to the individual states to regulate the distribution and sale of alcoholic beverages within their borders. The Three-Tier System of independent alcohol distribution was born to separate suppliers, wholesalers, and retailers.

Ohio, like 18 other states, is a control state with complete control of beverages containing 21 percent or more alcohol. The Ohio Division of Liquor Control, part of the Department of Commerce, manages everything from purchasing to inventory, setting prices and appointing retailers (agency stores).

The three-tier system works well and has withstood the test of time. Here's why:

1

Suppliers

The three-tier system provides a clear chain of custody and accountability. Distributors are licensed to purchase products only from federally and state-registered manufacturers – and sell only to establishments with state retail liquor licenses.

The three-tier system generates healthy competition and a robust marketplace. The middle tier – distributors – source products from importers, U.S. brewers and vintners and small local producers.

2

Distributors

The three-tier system generates healthy competition and a robust marketplace. The middle tier – distributors – source products from importers, U.S. brewers and vintners and small local producers.

3

Retailers

The three-tier system generates healthy competition and a robust marketplace. The middle tier – distributors – source products from importers, U.S. brewers and vintners and small local producers.

Beer, Wine, and
Low-Proof Spirits

A distributor, who brings products into Ohio, stores it and delivers it to local retailers: grocery stores, bars, restaurants, carryouts, specialty stores, and anyone who has an Ohio retail liquor license. Most Ohio distributors continue to be family owned businesses like Heidelberg. Alcohol beverages are different from any other food or liquid we consume and cannot be treated like potato chips or toothpaste. Heidelberg applauds the three-tier system and we adhere to all federal, state and local regulations.