Since the repeal of prohibition in 1933, American business owners have been working with alcoholic beverage distributors and wholesalers to stock wine and spirits for their businesses and the relationship continues today. As a business owner, you’re aware of the importance of alcohol distributors in your business.

As a result of the need for wholesale alcohol and a good relationship with your liquor distributors, it's essential for your business to build an effective service relationship with your suppliers. Keep in mind the following when working with alcoholic beverage distributors and wholesalers for your business:

1. It may be easier to buy wholesale liquor from a distributor that is in your state or immediate local area.

2. Buy wholesale liquor from large distribution centers and wholesalers. Large and well-respected companies will usually be a pleasure to deal with.

3. Choose to work with an alcoholic beverage distributor that offers services that enhance your business and your knowledge of alcohol.

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Select a local or Internet based alcoholic beverage distributor to fill your businesses inventory

Alcohol laws vary from state to state. That's why a great deal of local businesses buy alcoholic beverage from local wholesalers or distributors. These local liquor distributors and wholesalers are familiar with a particular state's laws and they will pass that knowledge onto you. If you can't find a distributor in your area, you may consider purchasing from Internet based alcohol wholesalers.

I recommend: Wine & Spirits Wholesalers of America offers a member list that includes many of the distributors and wholesalers in the United States. In fact, their members supply over 80% of the alcohol sold in the U.S. For an Internet based wholesaler, check out Beverage Wholesalers, they only sell to businesses that have the proper licenses for their particular area.

Build a long lasting business relationship with large wine and spirits distributors

Choose to work with large and well respected alcoholic beverage distributors in your area. Large operations can offer ease and support that you don't usually find anywhere else. Find the companies ranked highly by other business owners that have completed transactions with them.

I recommend: Southern Wine & Spirits is one of the nation’s top ranked distributors. Contact one of its two national accounts office to set up an account today. As the largest alcohol distributor in the Midwest area of the United States, National Wine & Spirits considers retailers, whether large or small, its partners. Its communication with every retail partner affirms this relationship.

Choose alcohol distributors offering services to enhance your business an d product knowledge

Product knowledge is important regardless of the type of business you're running. The best alcohol beverage distributors and wholesalers offer education services as well as fast delivery and promotional materials.

I recommend: Premium Blend offers a great product selection backed by fast delivery, recipe ideas and educational services. Also, check out Alliance Beverage Distributing for a great selection of products and educational seminars that are sure to help you with your business.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When you find a great wholesale liquor distributor, stick with them. Working with alcoholic beverage distributors and wholesalers and building a lasting personal relationship will benefit you, your business and the level of service that you receive.

The government licenses alcohol distributors and allows them to sell alcohol to retailers. Retailers must posses an alcohol license to buy alcoholic beverages. The three-tier system that regulates alcohol wholesalers and liquor distributors actually helps smaller companies to get into the market while allowing the government to regulate the sale and collections of taxes on alcohol. Alcohol wholesalers and liquor distributors work hard to build a variety of alcoholic beverages from different sources of origination. A small mom and pop company from Colorado finds a distributor and sells their product across the state or through several states depending on where the distributor holds licenses.

With the three-tier system, an alcohol producer must sell alcoholic beverages to a liquor distributor who then sells to a retailer. The government defines a producer as anyone who brews beers or malted beverages, makes wine, distills alcohol or imports alcoholic beverages. The government allows wineries and brewpubs to both produce and retail alcoholic beverages. These two producers are the only exemptions from the three-tier system.

Wine and spirits distributors:

1. Wholesale alcoholic and non-alcoholic drinks
2. Connect small manufacturing companies with a large market
3. Maintain the proper licenses required to operate

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Become an alcoholic beverage distributor to wholesale alcohol

As a distributor, you get to find new products, promote products and work with large established companies. The three-tier system ensures your job security. You do need to be prepared for competition from larger companies, but a unique line helps you enter the industry successfully.

I recommend: Fill out IRS Form SS-4 to get your Employer Identification Number (EIN) before you apply for permits, licenses or applications. Once you have your EIN, visit the Alcohol and Tobacco Tax and Trade Bureau's (TTB) website to get the required forms, permits and applications for becoming a distributor.

Locate alcohol distributors actively seeking to sell and buy wholesale liquor

Many distributors join trade associations and post specific requests on the association's website. Reviewing the posts narrows your target search to distributors in need of your product. The posts also indicate producers looking for distributors.

I recommend: The International Beverage Network's Call to Tenders provides posts from companies seeking suppliers. World Marketplace offers new products and complete descriptions from companies seeking distributors.

Join a trade association to boost business

Trade associations connect producers, importers, distributors and other professionals in the alcohol industry. With a trade association, you boost business by marketing to the people most interested in your profession. Trade associations keep members up-to-date on changes to the industry, especially legal changes.

I recommend: Register your company with the International Beverage Network (IBN), one of the world's largest networks for alcoholic beverages, or join National Beer Wholesalers Association (NBWA). You can find information on existing members by visiting IBN's World Directory. NBWA's Directory lists associations by state.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure the alcohol beverage distributors you use offer refrigerator shipping.
• •  Alcohol regulations vary by state, so contact your state's regulatory board for specifics.

There are thousands of alcoholic beverage distributors and wholesalers across the country. Each wholesaler and distributor supplies certain brands and types of wine, beer and spirits. When working with these alcohol wholesalers, it’s important for you to stay up to date on the industry’s news and trends.

Looking for up to date news and facts related to the wholesale alcohol industry can be easy, but getting the most detailed information for your business is often a different task altogether. Alcohol distributors and liquor distributors have many websites, magazines and blogs that are devoted to gathering and dispersing the latest news. When looking for the best sources for news and trends related to alcohol and liquor distributors, it’s important to consider the following:

1. Magazines and specialty groups of wine and spirits distributors are great sources for updates on news and trends in the alcohol industry.

2. Associations that boast a large member list of alcoholic beverage distributors are usually up to date on industry news.

3. Whether on or off the Internet, public news sources and blogs devoted to the alcoholic beverage distribution industry offer news, tidbits and information you can’t find in other sources.

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Gather a selection of the industry's best magazines for news about liquor distribution services

Magazines are an essential source of information on any topic. Whether you're a retail business owner, a bar owner or a restaurateur, you know that it's important to stay up to date with the latest trends and news before and after you buy wholesale liquor. In the beverage industry, this means browsing a few key sites on the Internet and finding news that's easy to understand.

I recommend: Wine & Spirits Wholesalers of America offers a news section that features current happenings in the alcoholic beverage industry. For industry news and trends with the alcoholic beverage distributors and wholesalers around the country, also check out Nightclub & Bar Magazine.

Include wholesale liquor distributor associations in your research links

Alcohol wholesale associations not only offer a great source for a business owner to find a distributor, but they are also the perfect place to find the latest alcoholic beverage distributors and wholesalers news and trends. There's usually an association in each state that focuses on local and area news.

I recommend: Check out American Beverage Association where news and stories cover alcohol distributors and wholesalers across the United States. In the Maryland area, business owners often turn to the Maryland State Licensed Beverage Association for up to date information in regards to state laws before and after they buy alcoholic beverages; each state should have a similar organization.

Research the industry through public news sites that cover alcoholic beverage distributors

Public news websites are an ideal source for information and news. Though the television network sites are often the most popular source for information, there are also blogs and other news and informational sites that are useful places to find out about an alcohol wholesaler in your area.

I recommend: Hoovers is a news and informational site that collects facts about different companies and industries, a simple search can point anyone in the direction of learning more about any topic in the United States business world. In Northern California, business owners love the Pacific Brew News Blog. It contains great information about the happenings in that part of the country.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Be sure to complete adequate research before you buy wholesale liquor and other alcoholic beverages. Staying up to date on the news and events of the industry ensures that you make the best distributor and wholesaler choices for your business.

If you're thinking of jumping into the alcohol distributor business selling wine, beer or liquor, make sure you understand the terminology used in the industry. When you're dealing with customers, they'll expect you to be on top of your game, and understanding key terminology brings you one step closer.

This guide starts first with the basic definition for an alcoholic beverage distributor and from there takes on relevant industry words and terms like distilled spirits, 27 CFR Part 1, three-tier system of alcohol distribution, proof and proof gallons.

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Alcoholic beverage distributor

Alcoholic beverage distributor refers to the intermediary link between the manufacturer or importer and the retailer. The distributor function includes transportation, refrigeration (if necessary) and maintenance. Distributor roles also include working as exclusive agents for alcohol suppliers, offering guidance on product placement to alcohol retailers, training retail employees and distributing promotional materials. The terms alcoholic beverage distributors and alcoholic beverage wholesalers are typically considered synonymous.

I recommend: Learn how to enter the beer distribution business from the National Beer Wholesalers Association (NBWA).

Distilled spirits

The term distilled spirits (ethyl alcohol or liquor) refers to alcohol beverages made through fermentation and distillation processes. The definition includes whiskey, rum, brandy, gin and vodka but doesn't include beer and wine.

I recommend: Learn more about the distilled spirits industry from the Distilled Spirits Council.

27 CFR Part 1

27 CFR Part 1 falls within the Code of Federal Regulations and addresses basic permit requirements under the Federal Alcohol Administration Act, Non-Industrial Use of Distilled Spirits and Wine, Bulk Sales and Bottling of Distilled Spirits.

I recommend: Find out everything you need to know about 27 CFR Part 1 from the Government Printing Office (GPO) Access.

Three-tier system of alcohol distribution

The three-tier system of alcohol distribution is a state-based regulatory alcohol control system comprised of suppliers (breweries, distilleries, wineries), distributors and retailers whose mission is to protect consumers from unsafe alcohol products and practices. The system was a response to post-Prohibition concern over consumption and consumer safety. It created a distinct separation between suppliers and retailers (wholesalers/distributors) that took away some of the power suppliers had over retailers.

I recommend: For a brief and concise description of the three-tier system of alcohol distribution visit the Lipman Brothers web site.

Proof

Proof means the alcohol content of a liquid. Proof equals twice the percent of alcohol by volume. For example, whiskey containing 40% alcohol is 80 proof.

I recommend: Read about the history of the term "proof" at the Big Site of Amazing Facts.