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Reflecting on Beer History |
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Thursday, 17 January 2008 |
The National Beer Wholesalers Association (NBWA), representing the interests of 2,750 licensed beer distributors nationwide, is celebrating 74 years of successful alcohol regulation in the US. It was on Dec. 5, 1933, that Utah cast its vote in favor of the 21st Amendment, officially ending Prohibition and ushering in a new regulatory system that assures safe and efficient alcohol production, distribution and consumption, and takes local preferences into account.
When the 21st Amendment to the Constitution was passed and Prohibition was repealed, a state-based system of alcohol regulation was established to help facilitate a balanced and orderly marketplace for alcohol products and to ensure local control of alcohol beverages.
"The 21st Amendment has been an unqualified success. Alcohol is legal, but its production, distribution and sale is regulated according to the preferences of the citizens of each state," says NBWA president Craig Purser. "This innovative and non-centralized approach has allowed differing views of the role of alcohol in society to operate together in relative harmony."
The state-based distribution system ensures the collection of more than $17 billion in state and local taxes. The system is critical in protecting American consumers from the counterfeit and poisonous alcohol that is prevalent in many other countries. America's beer distributors are licensed and can only source alcohol from licensed importers and brewers and sell only to licensed retailers preventing gray markets, tax evasion and potential harmful substitutes from reaching the consumer.
Beer distributors play a vital role in the state-based regulatory structure. The distribution system provides a transparent and accountable chain of custody in the sale of beer, making it easier to enforce state laws and local ordinances. The system also regulates retail sales, ensuring that retailers hold the appropriate license, do
not sell to those under the legal drinking age, pay state and local taxes and generally comply with state and local alcohol beverage laws.
"What we've got in America is a system that successfully balances a competitive marketplace with effective regulation," says Purser. "At the same time, it provides a vehicle to market for suppliers and ultimately gives consumers an immense amount of choice in the marketplace. Beer distributors are the reason why more than 13,000 beer labels are available on store shelves across the country."
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