Industry – Wine and Spirits Wholesalers of Texas

Industry

Who are Texas' wholesalers?

The Wine and Spirit Wholesalers of Texas (WSWT) is a state trade association representing the wholesale tier of the wine and spirits industry. It is dedicated to advancing the interests and independence of wholesale distributors and brokers of wine and spirits.

WSWT was created with the goal of providing Texas’ wine and spirits wholesalers and distributors a unified organization to protect and grow alongside their interests.

The wholesalers and distributors of Texas are the vital middle tier of the three-tier beverage alcohol market between suppliers (first tier) and retailers (third tier). In this second tier role, wholesalers create important efficiencies and value in the marketplace that saves manufacturers and retailers millions of dollars in direct operating costs annually.

The Three-Tier System

After the repeal of Prohibition in 1933 and the adoption of the 21st Amendment, every U.S. state established the three-tier system for the distribution of alcoholic beverages. Through this system, Texas balances public safety and a dynamic marketplace. The consumer-friendly framework of regulations drives responsibility and accountability across the industry with tremendous economic benefit to the state.

Tier 1

Breweries, Distilleries and Wineries

Tier 2

Wholesalers & Distributors

Tier 3

Off-Premise & On-Premise Retailers

Wholesalers contribute by:

• Preventing the Sale of Counterfeit and Dangerous Products
• Ensuring Public Safety
• Enabling Consumer Choice

• Providing for Proven and Efficient Tax Collection

Benefits of the Three-Tier System

The three-tier system protects consumers by ensuring only legitimate, unadulterated product is sold to customers of legal age, and guarantees a predictable flow of tax revenue to government with appropriate regulatory oversight.

This structure also ensures that vertically-integrated monopolies cannot exist across all tiers of the system, while also balancing the competing interests of many companies and ensuring an orderly and well-managed marketplace.

Within the three-tier system, wholesalers bring alcoholic beverages made around the world to your local retailers using the most efficient logistics systems to provide Americans the widest consumer choice of alcohol beverages in the world.

Wholesalers build alcohol beverage brands in the local marketplace by providing retailers sophisticated marketing and product education services for wine and sprits brand owners.