Within the three-tier system, each tier becomes responsible for ensuring that the laws and regulations set forward by the government are executed. All parties must comply with those laws and each is responsible to the other. These laws and regulations provide safeguards that there are lawful trade practices and safe handling of alcoholic beverages before it gets to consumers. This transparent regulatory scheme elevates consumer confidence because the three-tier system ensures that only licensed distributors and retailers will be able to provide and sell alcoholic beverages. An example of the system’s effectiveness can be illustrated in the 2008 recall of certain products by the Sam Adams brewery. The recall was initiated due to glass shards found in bottles. The recall was quick and without major issues because of each tier’s responsibility in tracking alcohol products across distribution channels.

The economic benefits of the three-tier system positively impact society in several ways. Tens of billions of tax dollars are provided to federal, state, and local governments by manufacturers, wholesalers, and retailers in the alcohol industry. Because of the checks and balances created within the three-tier system, there is less risk of untaxed, potentially tainted “black market” alcohol passing to the consumer. The tax money provided by the system goes to education, infrastructure improvements, and other areas that benefit all citizens.

Commercial benefits of the three-tier system clearly are numerous. For manufacturers, they are given equal access to the marketplace that they would not receive under other systems. This allows for large corporations as well as craft distillers and brewers to reach consumers. Rather than be dwarfed by larger competitors, smaller manufacturers receive greater opportunities to increase sales through distributors with retailers nationwide. As a result, consumers have more choices to a variety of alcoholic products.

Because of the checks and balances created by the three-tier system, several public health and safety benefits are present. As each party must be licensed and accountable for alcoholic products, this prevents tainted alcohol from entering the marketplace. This is a major issue in other countries that do not follow the three-tier system, including Mexico, the Dominican Republic, Costa Rica and the United Kingdom. Additionally, the system prevents the marketplace from being dominated by major companies who can use tactics to increase alcohol sales. For example, a major reason for national prohibition in America was the behavior of saloon owners who used influence to solicit customers to overdrink and overspend on alcohol, causing a negative impact on families and creating numerous public health issues. The United Kingdom has experienced many negative consequences because of inexpensive and readily available alcohol, and at times tainted alcohol. The system has played an important role in preventing such problems in the United States. As described in the “Healthy Alcohol Marketplace Issue Brief #9" publication on alcohol regulation and the three-tier system: This structure keeps prices balanced, prohibits or inhibits aggressive sales practices, and allows both small and large operators to be profitable. This system also uses checks and balances from one tier to another to enforce many provisions, and the middle tier is used to collect taxes and track products (a function the government would otherwise have to perform at extra cost to the taxpayers).