Arizona’s Three-Tier Distribution System
Tier 1 is composed of the producers – the makers of the beer, wine and spirit beverage alcohol products enjoyed by millions of responsible, adult Arizonans.
Tier 2 is composed of the distributors – the wholesalers who buy these products from producers and sell and distribute these products to retailers.

Tier 3 is composed of the retailers who sell these products to the public.
This system was born out of the end of Prohibition when the 21st Amendment to the U.S. Constitution gave each state the power to regulate alcohol sales inside its borders. In response to the grant of this authority, all states adopted versions of the 3-tier system.
Under Title 4 of the Arizona Revised Statutes,with the exception of the ability of wineries to ship very limited amounts of product directly into Arizona, the 3-tier system is fully implemented under the state’s regulatory framework for these unique products (i.e., beverage alcohol).
The 3-tier system provides critical benefits on multiple levels, and it should be a priority for Arizona to maintain the integrity of this system.
The critical value point in the 3-tier system is the 2nd tier where distributors ensure product safety, consumer choice, fair competition, an infusion of economic vitality to the state and its communities, product affordability and convenience.