Before this time, most alcoholic beverages for off-premises consumption were often sold just like any other item of commerce in stores or bars.
Because of heavy lobbying by temperance groups in various states, most required off-premises beverages to be sold in dedicated stores (primarily called dispensaries) with controls over their location.
To further enhance oversight of beverage sales, some states such as South Carolina operated state-run dispensaries.
In its simplest terms, the license system allows private enterprises to buy and sell alcohol at state discretion.
As alluded to above, under the monopoly plan the government takes over the wholesale trade and conducts the retail sale of heavier alcoholic beverages through its own stores.
In all monopoly states, a parallel license system is used to regulate the sale and distribution of lighter alcoholic beverages such as beer and wine.