What is a Beverage Distributor?

Many people may think beverage distributors simply deliver beer and non-alcoholic products from suppliers and importers to local retailers.  However, Great Western’s role is much more involved than merely delivery. 

Another function of a distributor is to sell beer and non-alcoholic products, not just deliver it.  This is huge benefit to smaller suppliers because they often cannot afford to employ a large sales force; Great Western 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.  Great Western employs close to 80 people in Texas and Oklahoma Panhandle and operates a delivery fleet of over 12 trucks.

Warehouse personnel are responsible for taking inventory daily.  When sales people transmit their orders, each order is properly identified and prepared.  Beer and non-alcoholic products 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.

Similar to their counterparts in the soft drink industry, beer distributors are closely aligned with the brands they sell.  Our contracts with breweries and suppliers mandate that we distribute fresh products to licensed retail accounts in our assigned territory.

The Beverage Distributor as Responsible Citizen
Great Western is committed to ensuring that the products they provide are consumed legally, moderately, responsibly and safely.  Beverage distributors deliver more than just beer and other products.  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, Great Western 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:

1. To avoid the overly aggressive marketing and sales practices of the pre-Prohibition era;
2. To generate tax revenues that can be collected efficiently from the industry;
3. To facilitate state and local control; and
4. 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 2.5 million Americans and provides wages and benefits of $60 billion.  The brewing industry also pays $14 billion in direct federal, state and local taxes.  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.