D2: Markets: Background: Steve Raye on the US Wine Market Part 1
Steve Raye is President & CEO of Bevology, the marketing consultancy he set up to address the specific needs of wine and spirits brands trying to enter the US market. He has also published a book 'How to get US Market Ready' which is directed at exporting wine and spirit producers looking to enter the US market. We talk about the US three tier system which goes back 85 years to the end of prohibition when the government established a controlled market for the production and sale of alcohol.
The three tiers of regulation:
First tier - Importers
Second tier - Distributors (license is issued by a state but the distributor can operate in more than one state).
Third tier - Retailers
Steve likens the system to three locked gates with a brick wall (the consumer) at the end of the process. He helps producers find their way through before they take the first step.
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