What is a Beverage Distributor?

Many people may think beverage distributors simply deliver beer and wine from suppliers and importers to local retailers.  However, Gold Coast's role is much more involved than merely delivery.

We purchase beer and wine from our suppliers and store it at our facilities until retailers (such as grocery stores, gourmet shops, local restaurants, pubs and taverns, etc.) order it.  Because Gold Coast stores the products until they are needed, retailers' inventory is kept at the freshest level possible for consumers. Another function of a distributor is to sell beer and wine, not just deliver it.  This is huge benefit to smaller brewers and wineries because they often cannot afford to employ a large sales force; Gold Coast does the work for them. Sketch of a Distributor To run a successful beverage distributorship, a variety of employees are needed.  From warehouse personnel, salespeople and marketing professionals to driver-salespeople, management and logistics personnel, beverage distribution is rapidly developing into a high-tech industry.  However, people with a variety of skills are needed to keep these businesses operating every day.  Gold Coast employs close to 700 people in South Florida and operates a delivery fleet of over 150 trucks. Warehouse personnel are responsible for taking inventory daily.  When sales people transmit their orders, each order is properly identified and prepared.  Beer and wine is then loaded onto the delivery trucks.  When trucks return from delivering, inventory is taken again prior to unloading any refused items back into the warehouse. Since Gold Coast operates fleets of trucks and other vehicles, it is necessary to maintain 2 truck service centers 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. Similar to their counterparts in the soft drink industry, beer and wine distributors are closely aligned with the brands they sell.  Our contracts with breweries, wineries, and importers mandate that we distribute fresh products to licensed retail accounts in our assigned territory. The Beverage Distributor as Responsible Citizen Gold Coast is committed to ensuring that the products they provide are consumed legally, moderately, responsibly and safely.  Beverage distributors deliver more than just beer and wine.  They give back to their local communities in jobs provided, taxes paid and charities supported.  The alcoholic beverage industry actively promotes responsible consumption of its products - and is making a difference.  Distributors nationwide are sponsors of and participants in many community-based efforts, such as school education programs, safe rides home, the creation and placement of public service announcements (PSAs) and education materials, recycling programs, alcohol-free prom and graduation after-parties, training courses for licensed beverage servers, safe boating campaigns and designated driver programs.  In addition to being involved with many of these efforts, Gold Coast also hosts many special events to benefit local charities. The Alcoholic Beverage Industry The alcoholic beverage industry is comprised of 1) suppliers (breweries, wineries, spirits manufacturers, importers), 2) distributors and 3) retailers, making up what are known as the three tiers of the beverage industry (or the "three-tier system").  When Prohibition was repealed with the 21st Amendment to the Constitution in 1933, the 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: To avoid the overly aggressive marketing and sales practices of the pre-Prohibition era; To generate tax revenues that can be collected efficiently from the industry; To facilitate state and local control; and To encourage moderate consumption. Today's alcoholic beverage 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 alcoholic beverage industry. Combined, all three tiers are a major contributor to the United States economy.  The overall beer industry directly or indirectly employs 1.8 million Americans and provides wages and benefits of $54 billion.  The brewing industry also generates $9 billion in direct federal, state and local consumption (excise) taxes, not to mention all of the payroll taxes from the many jobs it supports.  These numbers reflect the contribution of all three tiers: brewers/importers, distributors and retailers.  And that's just beer - even more taxes, jobs, and revenue is produced by wine and spirits.   For more history on alcoholic beverage law, click here.

The Value of the Beer Industry

Across the Whole United States

The beer industry provides a lot of money for its employees and the federal government.  In 2004, brewers provided 48,600 jobs that amounted to almost $3.4 billion in wages, and distributors provided 92,250 jobs with over $4.9 billion in wages.

Consumption taxes on beer produced almost $3.7 billion for the federal government.  Sales and excise taxes gave State governments almost $5.6 billion in 2004.

All figures are reported based on a study by John Dunham and Associates through http://www.beerservesamerica.org.