It might have been run through the South but Southerners didn't buy it, I can almost guarantee that one. I'd say 1 in 3 healthy Southern men back then ran their own still out in the woods. My Great Grandfather made moonshine his whole life.
A lot of southerners probably didn't drink at all back then, since we are in the heart of the Bible Belt. I'm sure the rural areas just had the stills but I bet in the bigger cities like Memphis and Atlanta the bootleggers made some money.