3-Tier System
How a Three-Tier System Benefits You
Ensures Safety and Compliance
A system with distributors as the vital link ensures genuine, unadulterated products are sold to consumers of legal age. Learn more about distributors and social responsibility.
Ensures Safety and Compliance
A system with distributors as the vital link ensures genuine, unadulterated products are sold to consumers of legal age. Learn more about distributors and social responsibility.
Enables Variety and Choice
This system creates a competitive, consumer-focused wine and spirits market where craft labels can thrive and innovation breeds success.
Enables Variety and Choice
A system with distributors as the vital link ensures genuine, unadulterated products are sold to consumers of legal age. Learn more about distributors and social responsibility.
Emphasizes Responsible Consumption
Alcohol is a socially sensitive product and our industry is committed to a system that maintains responsible sale and consumption.
Emphasizes Responsible Consumption
Alcohol is a socially sensitive product and our industry is committed to a system that maintains responsible sale and consumption.
Empowers the State and Local Governments
A three-tier system guarantees a predictable flow of tax revenue to the government with appropriate regulatory oversight.
Empowers the State and Local Governments
A three-tier system guarantees a predictable flow of tax revenue to the government with appropriate regulatory oversight.
The Three Tiers
Tier One: Producers
Thousands of distilleries, breweries, and wineries around the world produce alcohol beverages, but they still need to reach local retailers and American consumers. Enter wholesalers.
Tier Two: Wholesalers
American distributors are experts in logistics and brand-building, representing tens of thousands of brands from around the world. They work with retailers to bring a tailored set of products that serve each community and satisfy the needs of all consumers. Wholesalers sell products only to retailers, both on and off premise. Wholesalers collect and remit excise tax to state governments. The final, total amount of Colorado alcohol excise tax collected for the entire fiscal year 2024-2025 is not yet available, as the fiscal year has just concluded (ending on September 30, 2025) and final reports are pending. The Colorado Department of Revenue is expected to release a comprehensive “Liquor Excise Tax Report” in the spring or fall of 2026, which will provide the final numbers for FY 2024-2025
Tier Three: Retailers
Retailers sell wine and spirits to American consumers. These outlets are classified into two categories: on-premises (bars, restaurants, and hotels) or off-premise establishments (grocery, liquor, and convenience stores).