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Which of the following is an exception to the three-tier system?

  1. Microbreweries selling only to wholesalers

  2. Brewpubs that brew and retail

  3. Retail shops that sell directly to consumers

  4. Importers selling to retailers

The correct answer is: Brewpubs that brew and retail

Brewpubs that brew and retail represent an exception to the three-tier system because they engage in both the production and sale of their beer directly to consumers. In the typical three-tier system, the process is divided into three distinct levels: producers (breweries), wholesalers (distributors), and retailers (bars, restaurants, and shops). Brewpubs operate at both the production tier and the retail tier by brewing their beer on-site and then serving it on the same premises, allowing them to bypass the wholesaler tier when selling directly to customers. This dual role sets brewpubs apart from other entities within the traditional three-tier framework, where microbreweries typically sell their products to wholesalers before reaching consumers, and retail shops usually acquire their products from distributors. Importers also follow the three-tier model by selling to retailers, thereby adhering to the separation intended by the system.