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Essential terminology for navigating the alcohol commerce industry. From compliance to distribution, understand the language of the business.
The system mandated in most U.S. states requiring alcohol to pass from producer to distributor to retailer before reaching consumers. This system was established after Prohibition to regulate alcohol sales.
A unique identifier for each distinct product and variant in your inventory. SKUs help track stock levels, sales velocity, and product performance across channels.
Adherence to federal, state, and local regulations governing alcohol production, distribution, and sales. Compliance requirements vary by jurisdiction and include licensing, taxation, and shipping restrictions.
A sales model where alcohol producers sell directly to end consumers, bypassing traditional distribution channels. DTC requires specific state licenses and compliance with shipping regulations.
The federal agency responsible for regulating and taxing alcohol production and distribution in the United States. All alcohol producers must obtain TTB approval for labels and permits.
Alcoholic Beverage Control permit issued by state agencies authorizing the sale, distribution, or serving of alcohol. Requirements and types vary by state.
A secured facility where imported alcohol is stored without payment of duties or taxes until the goods are released for sale. Essential for international alcohol distribution.
The complete process of receiving, processing, packing, and shipping customer orders. In alcohol commerce, fulfillment must comply with age verification and shipping regulations.
The middle tier in the three-tier system that purchases alcohol from producers and sells to retailers. Distributors handle warehousing, delivery, and often marketing support.
Often used interchangeably with distributor, a business entity that buys alcohol in bulk from producers and sells to retailers or on-premise accounts at wholesale prices.
A tax levied on alcohol production or sale, calculated per gallon or proof gallon. Rates vary by beverage type (beer, wine, spirits) and jurisdiction.
Documentation certifying where an alcoholic beverage was produced, often required for imported products and interstate shipping to verify compliance with regional regulations.
A measure of alcohol content, equal to twice the percentage of alcohol by volume (ABV). For example, 80 proof equals 40% ABV. Used primarily in the United States for spirits.
Establishments licensed to sell alcohol for consumption on-site, such as restaurants, bars, and tasting rooms. Distinct from off-premise retail (liquor stores).
A legal document between shipper and carrier detailing the type, quantity, and destination of goods being transported. Required for commercial alcohol shipments.
