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What process do brewpubs engage in that allows them to operate outside of the typical three-tier system?
Importing products from overseas
Brewing and selling directly to consumers
Working exclusively with wholesalers
Distributing products nationally
The correct answer is: Brewing and selling directly to consumers
Brewpubs operate in a unique position within the beer industry by brewing their own beer on-site and selling it directly to consumers. This practice allows them to bypass the traditional three-tier system, which consists of producers (breweries), distributors (wholesalers), and retailers. The three-tier system is designed to regulate the distribution of alcohol and ensure that products move through the appropriate channels. By brewing and selling directly to consumers, brewpubs create a direct relationship with their customers, providing a unique experience that often includes a brewery tour and tastings. This arrangement not only enhances customer engagement but also allows brewpubs to retain more of their profits and maintain control over their products, from brewing to serving. This model is crucial for the success of many brewpubs, especially those focused on small-batch and specialty beers. Meanwhile, the other options do not pertain to the specific operational strategy that enables brewpubs to function like this. Importing products from overseas, working exclusively with wholesalers, or distributing products nationally all involve interactions with the three tiers of the beverage alcohol market, which do not align with the brewpub model.