Why regulate the distribution of alcohol? Starting with Prohibition, the period from 1920 to 1933, during which the production, sale and transportation of alcohol was banned nationwide, the three-tier alcohol distribution system was created. This tier system determined how alcohol was to be produced and distributed in the United States and other countries. State and federal laws generally require that alcohol, including wine, beer and spirits, produced by licensed producers be first sold to licensed distributors and then to licensed retailers before reaching the hands of consumers. Without the three-tier system, alcohol production and distribution would be chaotic and disorganized in the United States and other countries. Before prohibition, large breweries had their own saloons. If you wanted a specific type of beer, you went to that particular saloon. Large breweries practiced anticompetitiveness by requiring retailers to carry their specific products. Breweries also held ownership stakes in bars. Breweries not only supplied bars with their specific beer, but also gave loans to bars for furniture, brewing equipment, and other bar necessities. It seemed like a good way to start a bar or saloon, the big breweries required the bars to carry only their labels. Breweries put a lot of pressure on bars to increase beer sales. The pressure pushes your customers to the point of overindulgence. Society was crying out for a solution, and the government passed the Eighteenth Amendment, otherwise known as Prohibition. (Fermenterium, Blog Achieve: How Three-Tier Beer Distribution Works) Starting with Prohibition also known as the Volstead Act. Prohibition is widely spread… middle of paper… their alcohol consumption. Therefore, crime rates continue to increase. Between 1920 and 1933, alcohol prohibition did not solve all the social problems that were predicted to occur due to alcohol. This made the problems worse, the crime rate skyrocketed, and people's morals and ethics fell apart. Since the prohibition period, the three-tier alcohol distribution system has been in place. This system, far from being perfect, may not solve our social problems one hundred percent. However, since 1933, when three-level alcohol distribution came into force, it has managed to maintain partially neutral ground and a fine line for beer producers and distributors to walk. Therefore, as you can see, without the three-tier system in place, the production and distribution of alcohol would be chaotic and disorganized in the United States and other countries..