The three-tier distribution system for alcoholic beverages was established following the national repeal of prohibition in 1933. Tennessee enacted a local option in 1939, meaning towns and counties could allow the sale of package wine and liquor by referendum.

The system provides a balanced approach to distributing alcohol through a regulated channel of producers, distributors and retailers. Wholesalers, or distributors, safeguard the quality and integrity of the products they deliver, and ensure they are only sold to the appropriate parties. Wholesalers also add value by serving as a local contact for retailers, tailoring product choice and marketing outreach to best serve each unique market.

Tennessee Beverage Alcohol Laws
Click here to learn more about Tennessee’s beverage alcohol laws.

21st Amendment - Repeal of the 18th Amendment
On December 5th, 1933, the 21st Amendment to the United States Constitution was ratified, which repealed the 18th Amendment and put an end to national prohibition. The amendment bans the importation of alcohol in violation of state and/or territorial law. The second section of the amendment gives absolute control of beverage alcohol to the states. Many states, including Tennessee, delegate control of beverage alcohol to local municipalities. To read the full 21st Amendment, click here.