Alcohol Licensing,
Permits and Resources

Maryland’s over $4 billion beer, wine, and liquor industry operates under a well-regulated Three-Tier System designed to ensure fairness and transparency. The ATCC oversees the regulation, licensing, and permitting for the manufacturing and distribution of alcohol throughout Maryland. This includes manufacturers and wholesalers at the State level, ensuring compliance with Maryland’s laws and regulatory standards. However, retail licensing and permitting are handled locally by Maryland’s 25 local jurisdictions. (Link to the list of local jurisdictions)

The Three-Tier System, established after the repeal of Prohibition in 1933, separates the alcohol industry into three distinct tiers, generally preventing vertical integration and ensuring no single entity controls the entire alcohol supply chain. This structure promotes temperance, fair competition, and tax revenue generation, while maintaining a safe and transparent alcohol market in Maryland.

What is the Three-Tier System?

The Three-Tier System is designed to regulate the flow of alcohol through the following three distinct tiers:

Tier 1: Manufacturers
Distilleries / Breweries / Wineries

Manufacturers are responsible for manufacturing alcohol. This includes distilleries, breweries, and wineries that create a variety of alcoholic beverages. Under the Three-Tier System, manufacturers are not allowed to sell alcohol directly to retailers or consumers without the appropriate licensing. Instead, they must sell their products to licensed wholesalers. This separation prevents manufacturers from having too much influence over retailers, creating a more level playing field in the market.

Tier 2: Wholesalers

Wholesalers act as the intermediaries between manufacturers and retailers. They purchase alcohol from manufacturers and then distribute it to licensed retailers across the State. By separating manufacturers and wholesalers across tiers, the system aims to reduce the potential for over-consumption and market monopolies. Wholesalers are responsible for ensuring that alcohol is distributed fairly and legally throughout Maryland, following all regulatory guidelines and tax obligations.

Woman is buying a bottle of wine at the supermarket background

Tier 3: Retailers
Bars / Restaurants / Liquor Stores

Retailers are the final step in the system, selling alcohol directly to consumers. These include bars, restaurants, and liquor stores. Retailers must purchase their inventory from licensed wholesalers, ensuring that alcohol sales are tracked and regulated. This step allows the government to monitor and tax the sale of alcohol more effectively while promoting responsible consumption. Retailers also play a key role in limiting alcohol access to minors and following local consumption laws.

This well-regulated Three-Tier System continues to play a vital role in ensuring that Maryland’s alcohol industry operates with fairness, transparency, and public safety at the forefront. For more information about the three-tier system, please visit the National Alcohol Beverage Control Association (NABCA).