Page 88 - Drinks Industry - 14 Jan 2016
P. 88
CONTENTS
STAGE 1
e) Route to Market
Continued
United States Market Speciics
The United States represents the greatest potential for Irish spirits exporters at this time.
However, it is also one of the most complex markets in the world.
Three speciic conditions are worth noting:
i) The three-tier structure
ii) The Control States System, and
iii) Labeling approval
i) Three Tier Structure:
As a control mechanism implemented following the abolition of Prohibition, a federal statute
was passed preventing a direct relationship between the producers of alcohol and the end
customer. The resulting mechanism is referred to as the ‘Three Tier System’. You, as the
producer, represent the irst tier. You are required to identify and appoint an importer in the
US for your product. The importer represents the second tier and, among other functions, they
will assist you in achieving legal compliance for your product and packaging. In some cases,
companies that perform the import function also perform the function of distribution. If this
is not the case, you will need to work with your importer to identify a suitable distribution
company.
The inal tier is the retailer/chain owner, or the bar/chain owner. The trading relationship
between the second and third tiers cannot involve the producer. This is not to say that in-store
or in-bar tastings cannot be carried out by the producers team, but they must be arranged
through the importer/distributor.
88
STAGE 1
e) Route to Market
Continued
United States Market Speciics
The United States represents the greatest potential for Irish spirits exporters at this time.
However, it is also one of the most complex markets in the world.
Three speciic conditions are worth noting:
i) The three-tier structure
ii) The Control States System, and
iii) Labeling approval
i) Three Tier Structure:
As a control mechanism implemented following the abolition of Prohibition, a federal statute
was passed preventing a direct relationship between the producers of alcohol and the end
customer. The resulting mechanism is referred to as the ‘Three Tier System’. You, as the
producer, represent the irst tier. You are required to identify and appoint an importer in the
US for your product. The importer represents the second tier and, among other functions, they
will assist you in achieving legal compliance for your product and packaging. In some cases,
companies that perform the import function also perform the function of distribution. If this
is not the case, you will need to work with your importer to identify a suitable distribution
company.
The inal tier is the retailer/chain owner, or the bar/chain owner. The trading relationship
between the second and third tiers cannot involve the producer. This is not to say that in-store
or in-bar tastings cannot be carried out by the producers team, but they must be arranged
through the importer/distributor.
88
