Education on the Beer Wholesale Tier

What is a beer wholesale distributor?

Many people may think beer wholesalers simply deliver beer from the brewers and importers to local retailers; however, their role within the three-tier system is much more involved then merely delivery. Wholesalers purchase beer from their brewers, reducing the brewers’ capital requirements and transferring the risk of retailer non-payment to the wholesalers. The wholesalers then store the beer at their facilities until retailers order it. Because warehousing and delivery are done locally, retailer inventory is kept to a minimum and costs associated with beer storage are significantly lowered. Additionally, same day or next day delivery helps maintain the freshness of the product consumers have come to expect.

The independent beer wholesalers also sell the beer to the retailers. Retailers include such outlets as your local beer distributor, local restaurants, pubs and taverns, sports venues and clubs. With the wholesalers responsible for selling the beer to retailers, smaller brewers, those which brew specialty and micro beers, also benefit as they often cannot afford to employ a large sales force. Thanks to your wholesaler, consumers have an enormous variety of beers to choose from.

Government initiatives

PBA works hand-in-hand with the members of our association to provide the alliance with representation and monitoring of all government activities, at both the State and Federal level, that have direct or indirect impacts of the success and operations of Independent Beer Wholesale Distributors throughout PA.

PBA is committed to representing and informing our membership and the public on laws and regulation affecting the malt beverage distribution industry in Pennsylvania.

PBA is involved in the following areas and activities:

State Legislation and Regulation

Federal Legislation and Regulation activities through direct contact and support of the activities of the National Beer Wholesalers Association and the Wholesaler Beer Association Executives www.nbwa.org

Judicial rulings, decisions and legal action when appropriate

Administration of PBA/PAC

Representation at political functions

Action Alerts, Legislative newsbreak, legislative position papers, and Federal updates

Coordination of activities with other industry-related associations

PA Beer Alliance Affliations:

NBWA Member

WBAE Member

PA Association for Government Relations Member

what is the three-tier system?

The three-tier system is comprised of brewers, wholesalers, and retailers (include D-distributors). This system was created to prevent tied-houses from before Prohibition.