Maryland Beer 101: Our Distributors
We hear a lot about the three-tier system of Maryland’s alcohol industry. But where do beer distributors fit in? First, the basics: Maryland’s beer industry is governed by a three-tier system: producers,distributors (also called wholesalers; the terms are used interchangeably), and retailers. It’s pretty easy to understand the first and third tiers: the first tier—the producers—brew the beer; the third tier—the retailers—sell it. But what, exactly, is the role of the distributors, and why do they matter? What do they do? Maryland’s wholesalers distribute beer from brewers to bars, restaurants, and other retailers throughout the state. But they do much more. They help build beer brands from the largest,most familiar labels to start-up, local craft brands and imports from around the world. They also deliver incredible consumer choice. And they generate significant economic contributions, from tax revenue to supporting quality jobs across the state. Who are they? Beer distributors are independent, family-owned businesses. Bond Distributors, for example, is a third-generation family business that has been in Baltimore City for 67 years and employs over 80 union workers and 180 people total. What benefits do beer distributors provide? 1. Quality, high-wage jobs
Distributors employ nearly 2,000 Marylanders as truck drivers, warehouse staff, salespeople, graphic designers and administrative professionals with stable, high-wage,year-round jobs.
2. Provide multiple offerings to consumers
Because distributors carry many different brands, including lesser-known craft brews, they generate competition, innovation, and vast selection for the consumer.
3. Promote local Maryland brewers
Distributors provide ease of entry for new products and small manufacturers since they already have relationships with local retailers.
4. Economic benefits for the state
Wholesalers distribute their products in compliance with state law, helping Maryland collect applicable state and local taxes.
5. Protect consumer safety
Distributors track all the beer they sell, to whom they sell it, and when. In the event of a product recall, they help retailers remove the affected beer by identifying where and when the beer was sold.
6. Charitable activities
Wholesalers sponsor numerous local civic events and make significant charitable contributions to local organizations. Distributors live in the same area where they work and deliver beer, and are deeply rooted in their communities.
How do distributors benefit brewers and consumers? Distributors are integral to helping build a beer’s brand. Distributors serve as de facto marketers for the brands they represent—they introduce retailers to new brands and offerings, showcase seasonal brews, and build a brand’s popularity. They promote small, independent craft brewers who may not have the resources to market their beer themselves.They even print signs and other advertisements for bars and stores to sell their offerings—serving as marketers for the beers that retailers carry, at no cost to the producers or retailers. Besides helping Maryland collect revenue, how do they impact the economy? Maryland beer distributors provide quality, high-paying jobs. Some employ almost 200 people,from delivery truck drivers to salespeople. They boost the beer industry by helping brands grow and consumers discover new offerings.