A History of Alcoholic Beverage Law
Like cigarettes, the sale of alcoholic beverages is highly regulated by both the federal government and state law. A brief description of a history of beverage law is listed below.
Until the early part of the 20th century, the distribution system for alcohol consisted of only suppliers (brewers) and retailers. The suppliers were typically more profitable, favoring retailers who sold only their own brands. Many local producers had ownership ties to the taverns, and they sold to them on extended credit terms, furnished equipment and supplies, paid rebates for pushing their brands exclusively, etc. Consequently, local brewers engaged in cutthroat competition for control of outlets, and some suppliers pushed retailers to increase sales whatever the social costs. This led to the rise of excessive consumption.
In the mid 1800's, there began a call for temperance. Some states began 
to implement prohibition laws, but those were soon declared unconstitutional or vetoed by state governors. Some states began to implement prohibition laws, but those were soon declared unconstitutional or vetoed by state governors. World War I gave the prohibition cause new ammunition. Literature depicted brewers and licensed retailers as treacherously stabbing American soldiers in the back. Prohibitionists argued that raw materials were being diverted from the war effort to an industry that debilitated the nation's capacity to defend itself.
As a result, in January of 1920 Congress enacted the 18th 
Amendment to the U.S. Constitution: the National Prohibition Act. However, as a result of the lack of enforcement of the Prohibition Act and the creation of an illegal industry, an increase in crime transpired. The crime rate soon skyrocketed to nearly twice that of the pre-prohibition period. It can be argued that prohibition destroyed legal jobs, created black-market violence, and diverted resources from enforcement of other laws.
In 1933 the 21st Amendment was ratified, repealing the failed 
experiment of Prohibition. While Prohibition did not end alcohol consumption, it dramatically changed the conditions under which it was sold and consumed. Section 2 of the Amendment gives states authority to regulate the production, importation, distribution, retail sale and consumption of alcohol beverages inside their borders.
Federal and state lawmakers realized that Prohibition did not work, but they did not want a return of the merchandizing and sales patterns that characterized the pre-Prohibition era. Consequently, they put together a three-tier system that uses distributors as the insulator between brewers and retailers.
Acting like a safety net, the three-tier system provides for “checks and balances” in the way that alcohol is distributed and sold to retailers as well as consumers. Producers sell to licensed beverage distributors, who sell to properly licensed retailers, and those retailers sell alcoholic beverages to the public.
| Why Have a Three-Tier System? | ||
| When Prohibition was repealed with the 21st Amendment to the Constitution, a three-tier system was established to eliminate the direct link between the brewers and the retailers and to ensure local control of the distribution process. This system has four primary goals: | ||
The three-tier system helps ensure that alcohol is not sold to minors or citizens who have voted to live in “dry” counties, it ensures that alcohol beverage taxes are reliably collected, and it allows smaller retailers to have a more level playing field and access to more products. Gold Coast is the "middle tier": we receive products from many different suppliers (both brewers and importers) and ship to thousands of independent retailers. If a brewery had to maintain its own warehouse and trucks to deliver to all of our customers, it would be too costly. Gold Coast thus serves an important financial role. Without distributors, our products would cost a lot more because it would be much more expensive to get them to stores, bars, and restaurants.
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Under Florida law, there are two types of retailers. "Off Premise" retailers are supermarkets, gas stations, and convenience stores; they are called off premise because any alcoholic beverages they sell must be consumed off their premises. It is illegal to drink beer inside a Publix, for example. By contrast, in "On Premise" retailers (bars and restaurants), you can legally drink alcohol on the premises. Gold Coast sells to both types, but we can only sell to licensed retailers - if you want to buy any of beers or wines, you need to find one of our many customers in South Florida.