In Tennessee, there is no "three-tier system" spelled out in the law, but the practical effect of the body of law, creates a three-tier system. My guess is that is the case in a lot of states, and possibly the US Code. Alcohol laws have been written, rewritten and amended so many times that unless you live with your head in the law book they are very hard to understand. At least ours are.
Now, nobody asked me, but, as a 5 term member of a state legislature and now a professional lobbyist (who happens to be in the process of building a distillery) if you really want to change some laws here is some advice:
1) you don't have to have a lobbyist, but you are better off with one. You are in the business of making spirits, a lobbyist is in the business of taking care of your business at the Capitol. Things take a long time to get done at the Capitol, but when they happen they happen fast and not always with a lot of notice. You might not be there when it happens and your opponent's lobbyist will be. By all means, have a professional write your legislation. A friendly legislator will probably have staff do it. If you don't have a lobbyist be prepared to spend a lot of time running to the Capitol. Whether you have a lobbyist or not, the group must give someone permission to sign off on amendments, changes and compromises and that person must be available and show up at all hearings/meetings/discussions. You can't vote on everything.
2) Be prepared for incremental progress and compromise. There is an old saying in lobbying: "the perfect can be the enemy of the good". In other words, refusing to accept any progress until the three tier system is abolished will prevent you from getting improved laws. My guess is that we are going to be waiting along time to get rid of the 3TS, but there are other things that would help us here. If you get less than you want this year, the legislature meets next year. Come back again.
3) If you don't know your State Rep and State Senator you are stupid. Have you invited them to your distillery? Did you go to his open meeting at the courthouse? Did you contribute $100 to his last campaign? And don't give me that stuff about he is a Republican and you're not (or the other way around) This isn't about national healthcare or a Supreme Court nominee. He is IN and is probably going to stay in, and he represents your distillery. Ask and he'll probably help you. If he won't, feel free to oppose him in the next election, but the chances of beating an incumbent are slim. You're better off making friends and taking any help he can give. If he is just opposed to drinking, give him a break and ask him to introduce you to some of his colleagues and to not be against you. There's more than one way to skin a cat and there are different levels of opposition.
4) There is strength in numbers. Get everyone together and go to the Capitol. Go see your personal legislators and then see everyone on the committee that is hearing the legislation. Have written talking points so that everyone is delivering the same message. Have a one page written summary for the legislator. They are busy. Distilleries aren't the only thing they are thinking about. If you give them a book, they won't read it.
Go every year, whether you have a bill to lobby or not. Think about hosting a distiller's reception.
5) Meet the staff person in charge of the legislation. They can be a lot of help, more than the legislator most of the time. Be very nice to the secretary. You want your calls on the call list.
6) Know the lobbying laws inside and out. Generally, as a business person you can't get in much trouble. But be careful. Find out if it is legal for you to give little gifts, like shot glasses, coasters or bottles of your product. DO NOT, ever say, "this is in consideration for your vote." That is a bribe, and people have gone to jail for less. Say, "this is to show our appreciation for your service to our state." If gifts are illegal don't give them.
7) Don't threaten. "We will remember in November" will probably be counter productive. Saying, "if you don't do this we will be against you" will just hack them off.
8) If they tell you yes, but vote no, go back and ask why. Be polite, but don't let them get away with that. "I'll do all I can for you" or "I'll be there" is not a yes. It's a dodge. If they say something like that, ask if that means yes. When they say yes, write it down or mark your sheet so that he can see that you are putting him in the "yes" column. Always remember that "No" is the second best answer. At least you know and can count him. If he says maybe, you have to go back again and again.
You can change state law but you have to be persistent, organized, and prepared for a long frustrating process. And let's not get into a discussion of how the system needs reform. Of course it does, but the system we have is the system we have. Trying to reform the system will just keep you from working on your industry's laws and regulations.
If you ever want to hear the story of how we passed the new Tennessee distillery law, let me know.