Geerlings & Wade - Cutting Through the Vines (2,787 words)

Laws of the Land

The repeal of Prohibition in the 1930s was a welcome change for those who enjoy wine—but for those who sell it, the laws that followed posed new problems.

When Prohibition was repealed, a national "Three-Tier System" was established to regulate the sale and distribution of alcoholic beverages, in order to prevent monopolies and to promote tax collection in all states. In short, the system requires that before a consumer may own an alcohol product, three parties before them must have owned it inside the United States: Either a winery or importer owns the wine first, then has to sell the wine within the same state to a wholesaler, who then has to resell that product to the retailer, who then can sell it to the consumer.