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Control States and Distribution


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How does distribution in a control state work (in particular Maine)?

In the 3 tier system (producer - state agent - retailer) where does the distributor come into play? Does the state agent (Pine State Spirits in Maine's case) do all the distribution work?

Do I still work with a private distributor to market to retailers?

When do I pay taxes on what I produce? In the state's price list there is an "agent cost" and a "retail price", are the taxes captured here?


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For spirits in Maine, distributors act as sales agents/representatives for producers (mostly large out of state ones). Pine State handles distribution. You are not required to have a private distributor to market to retailers or deal with BABLO/Pine State. All on premise buyers (bars/restaurants) buy from retailers. Some retailers act like distributors and deliver spirits to these accounts. Pine State delivers to retailers. There is no Maine state tax on the production side; everything is taxed on the retail end. Federal taxes, of course, are still due on what is removed from bond; i.e. sent from your distillery to Pine State.



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