Good Spirits 2018 Vol 2 - 33

hen national prohibition ended in
1933, the 21st amendment gave states the
individual right to choose how they would
regulate alcohol. Idaho became one of 18 states that
chose the control model. What this means is that as
a government agency, the Idaho State Liquor Division
(ISLD) is the sole importer, wholesaler, and retailer of
distilled spirits in Idaho. The ISLD owns and operates
a full-service warehouse and distribution center in
Boise. It also operates 65 state-run liquor stores
throughout the Gem State that are leased from private
sector landlords, and contracts with 105 private sector
retail stores. Beer and wine are distributed and sold
to the citizens by private wholesalers and retailers.

Prohibition and the three-tier
SyStem
This control model is part of what is known as the
three-tier system of alcohol beverage distribution.
This system evolved after the repeal of prohibition.
In looking briefly at the history of why the passage
of the 18th amendment enacted national prohibition in October 1919, it was because the temperance movement had made society aware of the
personal and social problems that were occurring
prior to and during this time period, and cited
alcohol as the major cause.
The federal government saw prohibition as the
solution to what was occurring in the nation. It
included vertical integration of alcohol distribution (where the manufacturer also sold the product), poverty, crime, violence, and other issues tied
to consuming alcohol. Saloons were popular, and
working men became regular customers of these
places which made and sold the alcohol.
The three-tier system, where a manufacturer/
supplier sells to a wholesaler who sells to a retailer,
offers a check and balance in the business of alcohol beverage distribution. The system also allows
for orderly and accurate collection of revenue for
the state or jurisdiction.
Interestingly, beverage alcohol is the only product
to be mentioned in two U.S. constitutional amendments; the 18th Amendment that created prohibition
and the 21st Amendment repealing prohibition and
gave individual states the responsibility to regulate
its sale and consumption according to the sensibilities of the citizens of a state, and the local
government.
"Idaho's model of spirits distribution works for
our citizens," says Jeff Anderson, ISLD Director.
"It provides for convenient but limited access for
liquor. Prices are set by suppliers and are competitive, as evidenced by the cross-border business
we get from Washington State consumers. The
resulting profits all stay in Idaho," he says. He
adds, "The wholesale and retail mark-ups that
would exist regardless of whether or not the ISLD
administered the business are what help sustain
the good causes we support. The Idaho State
Liquor Division is 'Citizen Owned for the Benefit
of All.'"
alcohol defined
Also known as ethanol, alcohol is a quick-evaporating, flammable, colorless liquid produced when
yeast breaks down sugar. Beverage alcohol has
been a part of most cultures for millennia, whether
FALL | WINTER 2017-2018 33

Good Spirits 2018 Vol 2

Table of Contents for the Digital Edition of Good Spirits 2018 Vol 2