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What is a Wholesaler?
The wholesaler is usually a local family business that distributes product
in compliance with state and local laws. As part of the three-tier system
of
beer distribution, the wholesaler serves as the middle tier – collecting
fresh product from the brewer and delivering it to the retailer. Wholesalers
play an integral role in providing competition, innovation and selection
for the consumer;
helping new products from small manufacturers enter the market; and
ensuring state taxes are reliably collected. As a local business, each wholesaler
participates in many local civic and charitable activities.
Our Communities
In addition to building the economy, South Carolina’s beer wholesalers
also work hard to protect our communities from the problems of alcohol abuse.
In fact, no industry does more to prevent the abuse of its products than the
beer industry.
Our efforts include
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Training for alcohol servers at bars, restaurants, clubs and sports facilities
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Age verification training and literature for employees of convenience
stores, supermarkets and mom-and-pop stores.
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Promoting the designated driver concept, and, in applicable areas, offering
free cab rides home to those too dangerous to drive.
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Providing wristbands for festival beer servers to identify those over
21.
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Promoting responsibility through safe boater programs around the state.
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Promoting moderation and responsibility through year-round public service
announcements on radio, TV and billboards, or by news conferences around
major holidays.
South Carolina’s beer wholesalers work hard – to build their local
businesses, to build safer and stronger communities, and to build our state.
How We Operate
South Carolina beer wholesalers ensure smooth and efficient handling of alcohol
in our state as critical links in the three-tier system of brewers, wholesalers
and retailers. Wholesalers
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Purchase the beer from brewers, who generally brew the beer out of state.
This local storage reduces the brewers’ capital requirements and
transfers the risk of retailer non-payment to the wholesalers.
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Store the beer, generally in temperature-controlled warehouses to maintain
freshness. Such local warehousing and delivery lowers retailers’ inventory
and storage costs.
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Sell and deliver the beer. Wholesalers ensure product freshness through
same day or next day delivery, product rotation and replacement of old
product.
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Collect state taxes of up to $2.32 per case from some 17,000 retailers,
which brings the S.C. Dept. of Revenue roughly $90 million annually. This
highly efficient tax collection system saves the State of South Carolina
time, money, staff and headaches.
Over the years, this tried and true system has provided checks and balances
among the three tiers. The result has
- Helped protect the health and safety of South Carolinians, in part
by ensuring that minors do not purchase beer and that sales conform
with community wishes.
- Fostered vigorous interbrand competition by ensuring smaller brewers
have access to retailers, and
- Ensured that state taxes are reliably collected.
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