The North Carolina Beer and Wine Wholesalers Association

What is a Beer/Wine Distributor?

Beer and wine distributors provide transportation, storage and maintenance for perishable products from the time it leaves the brewery/winery until it arrives at the retailer. Distributors ensure beer and wine are handled safely and sold only to licensed retailers. NC Beer Distributor Brochure

VARIETY
Distributors secure beer and wine from a wide variety of brewers, wineries, and importers and preserve the perishable products in a temperature controlled warehouse. They then deliver customized inventory based on the requirements of each individual retailer including restaurants, bars and neighborhood stores. After delivery, the distributor continues to monitor retailer shelves to ensure product freshness and integrity. This system has given consumers and retailers unparallel access to a wide variety of choice and selection.

SAFE STORAGE AND TRANSPORTATION
The distributor's infrastructure, including state-of-the-art warehouses and fleets of temperature controlled trucks and vehicles, combined with the warehousing, delivery, driver and merchandising personnel, ensures the efficient and safe delivery of a wide range of products, resulting in immense consumer choice at a great value. While providing choice and value to retailers and consumers, distributors work simultaneously with state regulators to ensure accountability of these unique products and an orderly marketplace. Distributors also remove and destroy beer reaching its expiration date, and are critical in tracking shipments in the event of a recall.

CHAIN OF CUSTODY
The distribution system provides a clear chain of custody and accountability in the sale of malt beverage and wine products, making it easier to police and penalize establishments that are found guilty of serving to underage patrons or otherwise violating the terms of their beer and wine permits.

TRANSPARENT AND ACCOUNTABLE
The same regulations that provide accountability in malt beverage and wine sales also ensure states can efficiently collect taxes on alcohol products. Because they retain the ability to monitor the sale of the products from the time it leaves the brewery/winery until it arrives at a licensed retail outlet, North Carolina distributors are best equipped to collect state excise taxes. It is easier to collect state excise taxes from licensed distributors than the thousands of retail establishments in our state that sell alcohol products.

MARKET ACCESS
The three tier distribution system also makes the most economic sense. It provides the best method for smaller breweries and wineries to get their products into a diverse marketplace and provides small retailers and consumers the best variety of choice and value. This system provides a level playing field for all brewers, wineries and retailers.

STATE ALCOHOL REGULATION
Alcohol is not like other consumer goods; a point well illustrated by the fact that it is the subject of two constitutional amendments. Alcohol beverages are unique and can have consequences if abused by adults or consumed by those underage. As society addresses problems like underage drinking and drunk driving, the importance of maintaining effective state alcohol regulation is critical.

Moreover, state regulation allows states the flexibility to deal with local circumstances. A one-size-fits-all approach to alcohol regulation simply doesn't work. For example people in North Carolina probably feel very differently about alcohol than those in New York. The 21st Amendment was designed to reflect local thought on the level of regulation needed for alcohol, and beer and wine distributors work hand in hand with state regulators to further the state's different approaches to regulation.

RESPONSIBLE CONSUMPTION
Beer and wine distributors are leaders in their communities as small business owners, civic activists, parents, religious leaders and philanthropists. As such, the men and women of the beer and wine distributing industry know that they are their own best advocates when it comes to eliminating illegal underage purchase and consumption of licensed beverages and drunk driving.

Beer and wine distributors play a vital role in their communities by sponsoring a vast array of programs that promote responsible consumption. The programs range from providing free taxi rides home from a range of events and venues for those who do not have a designated driver, to sponsoring alcohol-free after prom events and producing educational materials to help parents talk to their children about illegal underage drinking.

SKETCH OF A DISTRIBUTOR

Beer and wine distributors are small, independent businesses that contribute in numerous ways to the communities that they serve. Most distributorships are family-owned and operated with deep roots in their local community.

To run a successful beer or wine distribution company, a variety of employees are needed. From warehouse personnel, sales and marketing professionals to driver-salespeople, management and logistics personnel, beer and wine distribution has rapidly developed into a high-tech industry. A wide variety of skilled professionals are needed to keep these businesses operating every day.

It is common business practice for distributors to monitor their delivery trucks using the latest technology. Many distributors utilize GPS systems to monitor each delivery vehicle and salesperson. Pagers, cell phones, personal data accessories and other handheld devices are also standard operating equipment.

Warehouse personnel are responsible for taking inventory daily - often several times each day. Product inventory is labeled using bar code technology, radio frequency identification (RFID) and other methods. Warehouse employees use special electronic equipment to track inventory. When beer and wine are being prepared for delivery, each order is given its own pallet, affixed with a purchase order and prepared in a way that provides customization and accountability. The beer and wine are then loaded onto the delivery trucks. Each retail outlet receives a customized inventory specifically prepared for its unique needs.

Since distributors operate fleets of trucks and other vehicles, it is necessary to maintain a truck service center within the operation. This requires a staff of full-time mechanics to handle day-to-day maintenance and upkeep of the trucks and to take care of major maintenance needs.

While beer and wine distributors are closely aligned with some of the nationally recognized brands they sell, each one is an independent business serving the community by providing jobs and tax revenue, sponsoring local events and contributing to local philanthropies.

HOW DOES THE DISTRIBUTION SYSTEM BENEFIT THE CONSUMER?

Distributors secure beer and wine from a wide variety of brewers, wineries, and importers and preserve the perishable products in a temperature controlled warehouse. They then deliver customized inventory based on the requirements of each individual retailer including restaurants, bars and neighborhood stores. After delivery, the distributor continues to monitor retailer shelves to ensure product freshness and integrity. This system has given consumers and retailers unparalleled access to a wide variety of choice and selection.

CHOICE
By working with numerous brewers, wineries and importers - large and small - distributors are able to provide an immense amount of choice and variety for consumers. Beer and wine distributors allow all brands equal access to the market - from multinational brands to the smallest local breweries and wineries. This helps ensure a level playing field for all brewers and vintners.

MARKET ACCESS
Beer and wine distributors help small producers grow and compete by maximizing their sales reach; they unlock the market for startup and small brands. Distributors provide the infrastructure small brewers and vintners need to reach a wide network of retailers. Consumers benefit by having the choice between the largest and smallest brands, all on the same store shelf and restaurant list. Because of the economic investments of beer and wine distributors, these restaurants and retailers are able to respond to changing consumer demands and offer hundreds of choices at a great value.

HISTORY OF BEER AND WINE DISTIRUBTION

When Prohibition was repealed with the 21st Amendment to the Constitution, a system was established to help facilitate a balanced and orderly marketplace and to ensure local control of alcohol beverages. This system has four primary goals:

1. To facilitate state and local control;
2. To generate tax revenues that can be collected efficiently from the industry;
3. To promote temperance, moderation and an orderly marketplace; and
4. To avoid the overly aggressive marketing and sales practices of the pre-Prohibition era.

Today's distributors operate under many federal, state and local regulations concerning when, where, to whom and how their products are sold. In fact, few American industries are more highly regulated than the beer and wine industry. Additional information about the three-tier system can be fournd on our webage: The American Beer & Wine Distribution System.

THE BEER DISTRIBUTOR'S IMPACT ON THE ECONOMY

The North Carolina Beer and Wine Wholesalers Association (NCBWWA) represents 34 independent beer and wine distributors across the state.

North Carolina beer distributors employ close to 3,000 American workers, paying them more than $156 million in wages and benefits. The overall economic contribution from North Carolina's beer distributors is $350 million. For a state-by-state breakdown of the economic benefits of the entire beer industry, visit http://www.beerservesamerica.org/.

ECONOMIC IMPACT OF NORTH CAROLINA WINE AND GRAPES

A 2006 Economic Impact Study of Wine and Winegrapes in our state indicates that North Carolina produced wines contributed $317 million in revenue to the state in 2005. With 5,700 wine-industry related jobs and wages estimated at $67.9 million, the total impact (including indirect and induced revenues and wages) of the North Carolina wine industry is $813 million.