How to Export Wine to the USA

Complete Guide for European Producers

The U.S. is one of the world’s largest and most competitive wine markets, offering tremendous opportunities for European wineries. But entering this market requires more than simply shipping bottles across the Atlantic. The alcoholic beverage industry in the United States is highly regulated, with federal and state-level rules that add complexity to the export process.

Historical Background: Why Is the U.S. Alcohol Market So Regulated?

Alcohol regulation in the United States has its roots in the early 20th century. Before Prohibition, many suppliers sold directly to retailers, creating monopolistic practices and aggressive sales tactics. After the repeal of Prohibition, the Federal Alcohol Administration Act of 1935 established the modern system of regulation, designed to:

  • Prevent market domination by large suppliers.

  • Control excessive alcohol consumption.

  • Ensure tax collection and consumer safety.

This led to the creation of the three-tier system, a structure that remains in place today.

 

What Is the Three-Tier System?

The three-tier system requires a strict separation between:

  1. Producers (Suppliers/Importers): Wineries and importers who manufacture or bring wine into the country.

  2. Wholesalers (Distributors): Licensed intermediaries who buy from producers, handle transportation, and manage storage.

  3. Retailers: Bars, restaurants, supermarkets, and liquor stores that sell directly to consumers.

This structure ensures that every bottle of wine entering the U.S. market passes through multiple checkpoints, making compliance essential.

Differences Between States

While federal rules apply nationwide, each state has authority over alcohol distribution and sales. Broadly speaking, states fall into two categories:

  • Control States: The state government directly manages some or all aspects of alcohol distribution. For example, the state may operate wholesale channels or retail stores. Control states represent about 11% of all U.S. alcohol sales (excluding beer and malt products).

  • Open States: Private businesses handle distribution and retail, though they must comply with state regulations.

For exporters, this means the rules change across state borders — from licensing fees and distribution rights to taxation and marketing restrictions.

Franchise Laws and Their Impact on Wine Distribution

Some open states impose franchise laws that protect wholesalers from losing contracts with suppliers. These laws make it difficult for wineries to switch distributors, creating long-term binding agreements.

  • Flexible Franchise States: A supplier can change distributors by paying compensation.

  • Moderate Franchise States: Changes are allowed only when launching a new brand.

  • Strong Franchise States: Extremely restrictive — once you sign with a wholesaler, it’s nearly impossible to switch.

Why This Matters for European Wineries

Successfully exporting wine to the U.S. requires more than regulatory compliance — it’s about strategic market entry. By understanding the structure of the U.S. system, European wineries can:

  • Avoid costly compliance mistakes.

  • Choose the right distributor and state for entry.

  • Negotiate contracts more effectively.

  • Build sustainable growth in a highly competitive market.

Frequently Asked Questions

Do I need TTB approval to sell wine in the USA?

Yes. Every wine label must receive a Certificate of Label Approval (COLA) from the Alcohol and Tobacco Tax and Trade Bureau (TTB) before being imported and sold in the U.S.

No. Under the three-tier system, foreign producers must work with an importer and distributor before their wine can reach retailers or consumers.

In control states, the state government manages certain aspects of alcohol distribution or retail. This means additional steps and approvals are required compared to open states.

In states with franchise laws, once you sign with a distributor, it can be very difficult to change partners. Some states allow flexibility, while others strongly protect distributors.

A foreign winery cannot directly ship wine to U.S. consumers. To sell wine online in the U.S., foreign wineries must work with a licensed U.S. importer or establish a U.S.-based entity that obtains a Federal Importer Basic Permit from the Alcohol and Tobacco Tax and Trade Bureau (TTB). Additionally, label approval (COLA) and compliance with all advertising and trade practice regulations are necessary.

Next Steps

At Indagres, we specialize in helping European wine producers navigate the complexities of the U.S. market. From TTB label approvals and customs clearance to distributor matchmaking and strategy, our team ensures your brand is positioned for long-term success.

Contact us today

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