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Writer's pictureAmy Duncan

Effects of Prohibition: Why the industry is what it is:

Google Dictionary states:

Pro·hi·bi·tion ˌprō(h)əˈbiSH(ə)n/ noun

1.the action of forbidding something, especially by law:"they argue that prohibition of drugs will always fail"Similarbanningforbiddingprohibitingbarring

2.the prevention by law of the manufacture and sale of alcohol, especially in the US between 1920 and 1933.

Prohibition was a fascinating period in American history characterized by the nationwide ban on the production, importation, transportation, and sale of alcoholic beverages. 2023 marks it's 90th year of being abolished!! Here's a timeline of key events during the Prohibition era, along with some fun facts that we can dive into:

Funny you could legally drink it, but once it was gone... it was gone
Get it while you can!

January 17, 1920: The 18th Amendment to the United States Constitution goes into effect, prohibiting the manufacture, sale, and transportation of alcoholic beverages. (Note: It wasn’t illegal to drink alcohol during Prohibition. The 18th Amendment only forbade the “manufacture, sale and transportation of intoxicating liquors”—not their consumption. By law, any wine, beer or spirits Americans had stashed away in January 1920 were theirs to keep and enjoy in the privacy of their homes.)

1920s: The Roaring Twenties: Despite the ban on alcohol, the decade becomes known for its wild parties, speakeasies, and illegal production of alcohol. Organized crime syndicates, like the Chicago Outfit led by Al Capone, thrive on bootlegging.

Dumping all that perfectly good alcohol
What a sad day :(

1925: John T. Scopes is arrested for teaching evolution in a Tennessee public school, leading to the famous Scopes Monkey Trial. Prohibition and cultural conflicts play a role in this trial, showcasing the tensions of the era.

1927: Charles Lindbergh makes his historic non-stop solo flight across the Atlantic Ocean. Prohibition agents had searched his plane for alcohol before the flight, symbolizing the scrutiny faced by even the most famous figures.

1929: The St. Valentine's Day Massacre: A brutal gangland killing in Chicago, believed to be ordered by Al Capone, highlights the violence associated with the illegal alcohol trade.

I bet they didn't think this would happen...
The Criminal Aspect

1930: The Bureau of Prohibition is established, increasing federal efforts to enforce Prohibition laws.





Prohibition ending in 1933
Prohibition ends 1933

1933: The 21st Amendment is ratified, repealing the 18th Amendment and effectively ending Prohibition on December 5, 1933. This is the first and only time a constitutional amendment has been repealed by another amendment.

The effects of prohibition:

Prohibition had a significant and lasting impact on alcohol regulations in the United States. While Prohibition itself was repealed in 1933 with the 21st Amendment, it significantly shaped the framework of alcohol regulation that exists today. One of the most enduring legacies of Prohibition is the three-tier system of alcohol distribution. This system requires a clear separation between producers, distributors (wholesalers), and retailers of alcoholic beverages. It was established to prevent the monopolistic practices of pre-Prohibition saloons and to regulate the distribution of alcohol. This system is still in place in many states today, and it ensures that no single entity has full control over the production, distribution, and sale of alcohol. Many states established Alcohol Control Boards during Prohibition to regulate and oversee the sale of alcohol. These boards continue to exist in various forms today, responsible for overseeing aspects of alcohol regulation, including licensing, distribution, and pricing. Prohibition led to a greater focus on the issue of underage drinking. As a result, many states began to set minimum drinking ages during this period. This eventually contributed to the establishment of a national minimum drinking age of 21 with the National Minimum Drinking Age Act of 1984. The federal government gained significant regulatory authority over alcohol production, labeling, and advertising during Prohibition. This authority continues to be exercised by agencies such as the Alcohol and Tobacco Tax and Trade Bureau (TTB), which oversees the alcohol industry's federal regulations. Prohibition prompted the federal government to rely more on alcohol taxation as a source of revenue. This reliance on alcohol taxes persists today, and alcohol remains one of the most heavily taxed consumer products in the United States. Prohibition-era regulations required more stringent labeling and accurate alcohol content labeling on alcoholic beverages. These labeling requirements remain in place today to ensure consumers have access to accurate information about the alcoholic content and origin of the beverages they consume. Prohibition allowed local governments to decide whether to remain "dry" (no alcohol sales) or become "wet" (allow alcohol sales). This local control over alcohol regulations is still prevalent today, with some counties or municipalities choosing to remain dry. The temperance movement that contributed to Prohibition also emphasized the importance of alcohol education and awareness. Today, these efforts continue through organizations and programs aimed at preventing alcohol abuse and promoting responsible drinking.

My thoughts and conclusion:

When I decided to embark in the world of alcohol importing I had no idea the complexity of it all. Which is one of the reasons I obtained my distributors license! I am still learning the ends and outs and have no regrets on pursing this business. I know that it is a gift for me to help the small wineries export and the people of the United States have delicious wines that would otherwise not be known. Win-win! If you would like more information on importing and distribution, email me at Amy@LuckyGrapevine.com I will give you the "in my first year speech". What I learned not to do! Cheers!

If you have some extra interest, check out this website from the TTB: https://www.ttb.gov/trade-practices#tpVideos


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