When Prohibition was repealed in 1933, the Federal Government gave the states power over ensuring responsible alcohol distribution. A three-tier system was introduced where liquor suppliers were required to work with a middleman, also known as a distributor or wholesaler, who would then sell the products to retailers. Overall, the system has worked. However, there are some things to consider before working with distributors. There are both benefits and drawbacks that you should address before jumping into a relationship with one.