I was told that there is a three tiered system when it comes to wine sales. Vineyards ->Distributor-> retail
I was told that there is a three tiered system when it comes to wine sales.
Vineyards –>Distributor –> retailer. Yet other entities have had starter monies from vineyards. How can a vineyard fund a retail establishment legally?
I have my own opinion. what if a holding corp holds the retail establishment (retail establishment sells wines) The vineyards loan the monies to the holding corp. Holding corp funds retail establishment. Retail buys wines from vineyards and profits go to holding corp. Holding corp pays back loan to vineyards.
I hope this make a little sense, it sounds sound in my mind. If not then how should it be done?
Tagged with: entities • monies • profits • retail establishment • tiered system • wine sales • wines
Filed under: All Things Wine
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The USA operates a 3-tier system, it is a hangover from the end of prohibition and is deeply uncompetitive and very profitable for the monopolistic middlemen.
Retail cannot buy from vineyard, has to buy from a licensed distributer –except ofcourse a retail outlet owned by and at a winery.
The system is bound in US Federal law and if you think you have a way to bend it, I suggest you need competent legal advice rather than Yahoo Answers — as good as many of them are