Three-Tier System

With the repeal of prohibition, most US states promulgated regulations that made vertical integration of the industry illegal, mandating that it be separated in to three ‘tiers’: producer (or supplier in the case of imports), wholesaler, and retailer (or restaurant). As a result of the legal protection of the middle tier and the rapid consolidation of wholesalers, notably southern wine and spirits, many producers, retailers, and consumers chafe at the lack of a full liberalization of the US wine market. For more, see united states, regulation and direct shipping.