What are Control States?

Control States for Alcoholic Beverages

Post prohibition, with the creation of the 21 Amendment in 1933, the federal government created a three-tier system for alcohol sales and empowered the states to regulate.  The three tiers of the system being producers, distributors and retailers.  Some states adopted a control distribution model, where state government operates some or all the distribution and retail tiers.  The system’s goals are to ensure product safety, tax collection and prevention of market domination by restricting any one tier from having financial interest in another.  


There are currently 17 control states plus Montgomery County, MD that fall into the model.  This diverse group of markets, located across the US, are a very important segment of the alcohol beverage business represents upward of 25% of total US sales!  And just like open states, each of the control states have different nuisances.  But they all have one thing in common…they are great partners and want to ensure the safe sale of products while safely serving their constituencies.