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

The three-tier system of beer distribution typically includes producers (brewers), distributors (wholesalers), and retailers. However, brewpubs represent an exception to this model because they operate as both a brewery and a retail establishment. Brewpubs brew beer on-site and sell it directly to consumers, effectively merging the production and retail tiers in a single business model. This allows them to bypass the traditional wholesale distribution step, which is integral to the conventional three-tier system.

Brewpubs leverage their unique positioning to create an intimate customer experience and often sell their beer alongside food, enhancing their appeal. These establishments are governed by specific regulations that allow them to operate in this dual capacity, making them notable exceptions to the three-tier requirement.