Beer in the United States
On January 16, 1919, the Eighteenth Amendment to the United States Constitution was enacted into law, creating the Prohibition era, wherein the production, sale and transportation of alcoholic beverages was made illegal. All legal American brewing came to a halt when prohibition was imposed, though the earlier temperance movement had already reduced the number of breweries significantly. Only a few breweries, mainly the largest, were able to stay in business by manufacturing near beer, malt syrup, or other non-alcohol grain products, in addition to soft drinks such as colas and root beers. Production and shipping of alcohol was largely confined to illegal operations that could deliver compact distilled beverages—smuggled rum and domestic moonshine—more efficiently and reliably than bulkier products such as beer.
Prohibition in the United States
In 1930 the Prohibition Commissioner estimated that in 1919, the year before the Volstead Act became law, the average drinking American spent $17 per year on alcoholic beverages. By 1930, because enforcement diminished the supply, spending had increased to $35 per year (there was no inflation in this period). The result was an illegal alcohol beverage industry that made an average of $3 billion per year in illegal untaxed income.