This month marks the 84th anniversary of the ratification of the 21st Amendment — otherwise known as Prohibition Repeal, the end of the federal ban on alcohol in the United States.
While most people concentrate their focus on the first section of the 21st Amendment — the repeal of the 18th Amendment — they forget that the second section was the unifying factor that allowed passage of the 21st Amendment and guaranteed its lasting success. Section 2 of the 21st Amendment created a constitutional mandate that guaranteed each state’s ability to regulate alcohol. “Repeal Day” required that states wanting to legalize alcohol exercise their constitutional prerogative so that many thirsty Americans could enjoy beer, wine and spirits.
In honor of Repeal, we celebrate the birth of one of the great legacies of that time: state-based alcohol regulation and, what followed, the creation of the three-tier system of alcohol distribution. The importance of separating manufacturing and importing, distribution and retail was particularly prescient of the American leaders. That system, which has evolved into today’s modern American distribution network, has prevented the producer-owned retail monopolies (the tied house) that robbed other countries of their beer heritage and denied consumers in other countries the vast selection of brands and styles that American consumers enjoy every day.
Today, the U.S. beer market continues to flourish. In the 1980s the industry had just 50 brewers nationwide. Thanks to a system that supports entrepreneurs, there are now more than 5,000 beer makers across the United States. It’s a success story driven by talented artisans and their partners and advanced by thoughtful policymakers. And the result is a dynamic and competitive industry and an orderly marketplace.
This is good for America’s economy. Since the tax revenues from beer and other adult beverages rescued the U.S. Treasury during the Great Depression, beer has remained a positive economic force. Beer distributors alone contribute $70 billion in economic activity, pay tens of billions in taxes, and give back hundreds of millions of dollars each year through charities and community activities. By assisting retailers and brewers, beer distributors also contribute $23 billion in transportation efficiencies and support 335,000 jobs with good wages and excellent benefits.
So, this month as you sip a seasonal beer with family and friends, raise a toast to the 3,000 Main Street companies made up of over 130,000 hard-working men and women in the independent beer distribution industry. This workforce is responsible for getting your beer — whether large or small, domestic or imported — to bar taps and store shelves. And, they acquaint retailers, from pub operators to package store owners, with the full selection of products to introduce customers to the widest variety of high-quality beer.
The lessons from the 21st Amendment and the beer heritage that has emerged following Prohibition has taught us many things including the value of our diversity, the importance of effective regulation and how effective public policy can help maintain a competitive and orderly market. So, pour a frosty mug of pilsner or a rich pint of stout and appreciate the many different beers, we enjoy as Americans due to the 21st Amendment. Cheers!
Craig Purser is president and CEO of the National Beer Wholesalers Association in Washington, D.C.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of The Daily Caller.
