Texas Alcoholic Beverage Market: Regulations, Statistics, Trends, and Wholesalers

Texas has emerged as a major force in the world of adult beverages, with distilleries in the Lone Star State crafting an impressive array of whiskeys, vodkas, gins, and more. What sets Texas spirits apart is the distillers’ close ties to local agriculture, utilizing crops like barley, juniper berries, oranges, and sugarcane grown right in the state.

Regulations in the state are also a little different, with Texas featuring what is often referred to as the “Fourth Tier.” In the standard three-tier system, a manufacturer sells to a distributor, which would then sell to a retailer. However, in Texas, a larger retailer can also be licensed to distribute alcoholic beverages to private clubs or smaller retailers.

We’ve prepared a guide to the Texas market which covers the following topics:

• Consumption trends
• The most popular alcohol categories
• Local guidelines

Texas has an approximate population of 30 million people, as of 2022, with 21.2 million of them within the legal drinking age bracket. The state is the fourth-largest market in the United States, with spirits sales totaling over $7.5 billion.

If you need help establishing your presence in Texas, provide your information below, and we’ll contact you to share more on how we can help.

At Park Street, we can help anyone looking to enter the market or expand their services in Texas.

Consumption Trends In Texas

Texas is one of the ten largest beverage alcohol markets in the United States. In 2022, there were 268.2 million cases of beer sold, followed by 15.7 million cases of wine, and 19.6 million cases of spirits. Below you will find some charts displaying the volume growth for beer, wine, and spirits over a five-year period.

Texas Spirits Consumption from 2018-2022 by 9-Liter Cases

Texas Wine Consumption from 2018-2022 by 9-Liter Cases

Texas Beer Consumption from 2018-2022 by 9-Liter Cases

Texas State Alcohol Licensing

All U.S. states are regulated at a federal level according to the Federal Alcohol Administration Act. At a state level,  The Texas Alcoholic Beverage Commission (TABC) oversees and enforces the Texas Alcoholic Beverage Code. The agency is responsible for licensing, tax collection and auditing, fee collection, and enforcing the state’s laws and regulations. The TABC oversees all tiers including:

• Manufacturers (breweries, wineries, distilleries, cideries, meaderies, and rectifiers)
• Wholesalers, also known as distributors
• Retailers (on-premise and off- premise)

In the simplest terms, manufacturers, sometimes referred to as producers, make alcohol products. Wholesalers sell the alcohol to the retailers. Retailers sell the alcohol to consumers. While there are some exceptions to this flow of goods, this is the federally regulated route to market.

All businesses that deal with manufacturing, distributing, selling, or importing alcohol in Texas must be licensed. In Texas, all goods must come to rest at a wholesaler’s warehouse before reaching a retailer or consumer.

As of 2022,  there were over 280 licensed distillers and bottlers, according to the TTB,, more than 360 breweries with active licenses, and over 400 wineries in Texas.

Common Licenses for Manufacturers in Texas

Distillers and Rectifiers Permit  — Authorizes the holder to manufacture distilled spirits and to rectify, purify, refine, or mix distilled spirits and wines. It also allows the distiller to contract with another distiller to conduct distilled spirit production activities at the other distiller’s premises.

Nonresident Sellers Permit —This permit authorizes the holder to sell and ship distilled spirits and wine to Texas-based TABC license or permit holders who are authorized to import those beverages into Texas.

Texas State Alcohol Regulations

Texas is an open state, meaning private entities handle the sale and distribution of alcoholic beverages but are still regulated by state legislators.

Shipping and Selling to Consumers

Below is a breakdown of distribution and sales regulations for each type of license holder in Texas.

Retailers may serve or deliver alcohol to consumers if certain conditions are met. Below is a breakdown of these specific distribution and sales regulations:

Certain retailers in Texas have privileges to deliver alcoholic beverages to consumers based on their permit or license type, including:

• Package store
• Wine-only package store
• Wine & beer on-premise
• Wine and beer off-premise
• Beer on-premise
• Beer off-premise
• Mixed beverage with a food and beverage certificate
• Private club with a food and beverage certificate

In-state wineries

• May sell and ship wine to consumers, up to nine gallons of wine in any 30-day period or 36 gallons for a 12-month period.

Out-of-state wineries

• May sell and ship wine to consumers, up to nine gallons of wine in any 30-day period or 36 gallons for a 12-month period.

In-state distilleries

• May not ship directly to consumers
• May not deliver directly to consumers

Out-of-state distilleries

• May not ship directly to consumers
• May not deliver directly to consumers

Shipping and Selling within the Three Tier System

In-state wineries

• May sell directly to licensed retailers.

Out-of-state wineries

• May sell and ship wine to consumers, up to nine gallons of wine in any 30-day period or 36 gallons for a 12-month period.

In-state distilleries

• May not sell directly to licensed retailers
• May not self-distribute

Out-of-state distilleries

• May not sell directly to licensed retailers
• May not self-distribute

Self-Pitch Distribution Model

Finding the right distributor is often cited as one of the most difficult challenges to building a brand in the U.S. There are thousands of brands and industry consolidation has led to fewer distribution companies to choose from in each market.

As such, one option available to emerging brands is to use Park Street’s self-pitch distribution model.
The self-pitch distribution model is similar to the three-tier traditional distribution model where product is delivered
to retailers, but the key difference is that sales and marketing is handled by the supplier.

Park Street’s CEO Explains Self-Pitch Distribution

Required Procedures for Alcohol Suppliers Selling in Texas

Label Registration

All alcohol products sold in Texas must have a label registration approved by the TABC in order to ensure products are in compliance with federal and state label regulations. Suppliers may register for a fee of $25.00 for each brand/type and size range.

Price Posting

Price posting is not required at the retail or wholesale level.

Texas Spirits Volume Sales By Category – 2022 Data

Spirit trends in Texas by volume and dollar sales in 2022.

Source: Beverage Information Group

Texas Wine Volume Sales By Category – 2022 Data

See below for the wine trends in Texas by volume sales in 2022.

Source: Beverage Information Group

Texas Beer Volume Sales By Category – 2022 Data

Beer trends in Texas by volume sales in 2022

Source: Beverage Information Group

Beer Distributors

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