One example is the 3-tier system that our government enforces to import wines from other countries. By law, there must be 1) an importer, 2) a distributor or wholesaler, and 3) a retailer or restauranteur. This system is supposed to protect the consumer, but I’m not so sure it does that. What I am sure is that it adds to the cost of the wine for the end user.

A case in point: Some states allow a company to be 2 tiers of the 3-tier system. This eliminates at least one middleman. One less person touching the wine means one less profit margin to pay; so the wine should cost less. In NC, my company (P. Comms Int’l) has permits as an importer as well as a distributor. So, I buy directly from the winemaker and I’m the only middleman between the winemaker and the retailer/restaurant.

Not only does this make for a better price on equivalent wines, but it also allows for better quality control throughout the entire process. Higher quality at less cost equals greater value. And understanding a few Wine Distribution basics will help you to realize these benefits.