No, they merely have to refrain from taxing it out the wazoo. Moonshine is a negligible part of the alcohol market despite no subsidies for legal alcohol.
During Prohibition we had illegal booze coming in through Canada. After the 21st, suddenly illegal manufactorers and distillers were now legal corporations. Paying taxes and everyone’s happy.
During marijuana prohibition we have illegal dope coming accross the border from Mexico or even grown here in the states by the Cartels. If we legalize it, suddenly the Cartels will become legal corporations paying taxes.
Is that what you want?