Three Tier System Archives

Federal Regulation Apr 15, 2022 | Read Time: 3 minutes

TTB: Generous Payment Terms Violate Federal Law

By Trevor Brewer

Under the Federal Alcohol Administration Act’s unfair competition and unlawful practices statute (27 US Code Section 205), alcohol suppliers are prohibited from selling alcohol to wholesalers and retailers on consignment. The TTB recently released Industry Circular 2022-1, which discusses the TTB’s position that long payment terms may violate the federal anti-consignment law. Federal Law Prohibits Anti-Competitive Arrangements Under Section...

Florida Aug 15, 2021 | Read Time: 4 minutes

What is a “Tied House” and Why is it Evil?

By Trevor Brewer

How a Florida law designed to prevent the “evil” of vertical integration in the alcoholic beverage industry limits the ability of suppliers to help you buy their products. Tied Houses, Evil and Otherwise The term “Tied House Evil” appears in the heading to Florida Statutes Section 561.42. Although the term is nowhere defined in the Florida Statutes, it is...

ABT Sep 13, 2020 | Read Time: 4 minutes

Alcoholic Beverage Importers and Exporters in Florida

By Trevor Brewer

Like alcoholic beverage manufacturers, distributors, and vendors, importers and exporters are subject to strict regulations and licensing by the federal government and the State of Florida. What Florida Importers & Exporters Can and Cannot Do In the alcoholic sales channel, importers play the role of getting products from overseas through US Customs and into the hands of distributors. Licensed...

Distribution Aug 12, 2020 | Read Time: 3 minutes

Florida Farm Wineries: Operating in All Three Tiers

By Trevor Brewer

Florida’s Three Tier System is a source of constant frustration for most of Florida’s alcoholic beverage and manufacturers. Brewers, distilleries, and (most) wineries are prohibited from distributing their own products to retail vendors. Florida breweries and distilleries are prohibited from selling their products to online customers. Florida distilleries can have gift shops, but they are prohibited from selling beverages...

ABT Aug 5, 2020 | Read Time: 2 minutes

Florida’s Three Tier System: Statutory Foundations

By Trevor Brewer

The Separation of Tiers In the aftermath of the Repeal of Prohibition, most states adopted some form of the Three Tier System. Generally, the Three Tier System is intended to regulate the alcoholic beverage industry by separating manufacturers and importers (First Tier), distributors and wholesalers (Second Tier), and retail vendors (Third Tier). Florida has a strong Three Tier System....

ABT May 17, 2020 | Read Time: 5 minutes

What Burger King Tells Us About Florida’s Three Tier System

By Trevor Brewer

The Florida ABT’s 2012 Declaratory Statement In re BK Whopper Bar, LLC tells us how the ABT thinks about the present separation of alcoholic beverage manufacturers, distributors, and vendors. BK Whopper Bar Asked and the ABT Answered In 2011, BK Whopper Bar, LLC and Burger King Corporation asked the Florida Division of Alcoholic Beverages & Tobacco (ABT) to issue...

ABT Dec 2, 2019 | Read Time: 3 minutes

Qualification of Related Parties for Florida Alcoholic Beverage Licenses

By Trevor Brewer

This article is Part 3 of a three-part series addressing a common, thorny issue in Florida alcoholic beverage licensing: Who can have a financial or controlling interest in beverage company? Part 1 focuses on the Three Tier System and how it is enforced through the licensing process. Part 2 focuses on identifying the Interested Parties of a beverage license...

ABT Dec 2, 2019 | Read Time: 3 minutes

License Applicant’s Guide to Understanding Florida’s Three Tier System

By Trevor Brewer

This article is Part 1 of a three-part series addressing a common, thorny issue in Florida alcoholic beverage licensing: Who can have a financial or controlling interest in a beverage company? Part 1 focuses on the Three Tier System and how it is enforced through the licensing process. Part 2 focuses on identifying the Interested Parties of a beverage...

ABT Dec 2, 2019 | Read Time: 4 minutes

Identifying the Interested Parties of a Florida License Applicant

By Trevor Brewer

This article is Part 2 of a three-part series addressing a common, thorny issue in Florida alcoholic beverage licensing: Who can have a financial or controlling interest in a beverage company? Part 1 focuses on the Three Tier System and how it is enforced through the licensing process. Part 2 focuses on identifying the Interested Parties of a beverage...