Colorado is a 3-Tier State.
If you make, distribute, or sell alcohol in Colorado, you operate inside a strictly regulated three-tier system. Each tier — manufacturer, distributor, and retailer — requires its own license, and the tiers are legally required to stay separate. Crossing those lines without the right license is how brands get shut down.
We're not attorneys. But after 30 years working alongside Colorado craft breweries, spirits brands, and beverage distributors, we know the compliance landscape well — and we know exactly which lawyers to put you in touch with when you need proper legal guidance.
Each tier. What it means. What license you need.
Manufacturer
The first tier is anyone who produces or imports alcohol. In Colorado, manufacturers must hold a state license specific to what they make — a brewery license is different from a distillery license, which is different from a winery license. Manufacturers generally cannot sell directly to retailers or consumers (with limited exceptions for on-premises taprooms and tasting rooms). Their product must move through a licensed distributor to reach the market.
Distributor
The middle tier is the distributor — a licensed wholesaler who purchases product from manufacturers and sells to retailers. In Colorado, distributors must be separately licensed and cannot have an ownership interest in a retail license (with narrow exceptions). This tier is the backbone of the system: it keeps manufacturers and retailers legally separated and ensures the state can track and tax every case of product that moves through the market.
Retailer
The third tier covers anyone selling to the end consumer. Colorado retail licenses are location-specific — a license tied to one address cannot be used at another. Retailers can only purchase from licensed in-state distributors or, in limited cases, directly from a Colorado manufacturer. The type of retail license determines what can be sold, in what quantities, and during what hours.
Colorado law prohibits financial interest, ownership, or control across tiers without specific licensing. A manufacturer cannot own a distributor. A distributor cannot own a retailer. Violating this — even unintentionally — can result in license suspension or revocation. If you're unsure where the lines are, ask before you act.
Experience, not legal advice.
We are not attorneys and nothing on this page is legal advice. What we are is a team that has worked alongside Colorado beverage brands for decades — helping them store product, navigate distributor relationships, and understand what licenses they need before they sign anything.
When you need an actual lawyer — for license applications, ownership structure questions, or anything where the answer really matters — we can connect you directly with attorneys who specialize in Colorado beverage alcohol law and have helped brands just like yours get it right.
- →Help you understand which tier you operate in
- →Explain what licenses apply to your situation
- →Walk through what storage and distribution looks like inside the system
- →Connect you with experienced Colorado beverage alcohol attorneys
- →Answer practical questions from 30 years of working in this space
We work with a network of attorneys who specialize in Colorado beverage alcohol licensing. If your situation needs a lawyer — and many do — we'll point you in the right direction.
Call Us — (303) 293-8440contact@fmgdenver.comDisclaimer: The information on this page is provided for general educational purposes only and does not constitute legal advice. FMG Denver is not a law firm and cannot advise you on your specific legal situation. Colorado liquor laws change frequently. Always consult a licensed Colorado attorney for guidance specific to your business.