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What is a notable exception to the three-tier system in many states?

  1. A brewpub that serves its own beer

  2. A grocery store that sells beer

  3. A liquor store chain with more than 10 stores in one state

  4. An importer that sells unpasteurized beer

The correct answer is: A brewpub that serves its own beer

The three-tier system is designed to separate the production, distribution, and retailing of alcoholic beverages, ensuring that licensed producers, distributors, and retailers operate independently. However, a notable exception to this system is a brewpub that serves its own beer. Brewpubs typically produce their beer on-site and are allowed to sell it directly to consumers, thus operating both as a manufacturer and a retailer within the same establishment. This exception is significant because it allows brewpubs to provide a unique experience by offering fresh, locally produced beer paired with food in a single venue. This combination supports the craft beer movement and contributes to the local economy. Brewpubs are often permitted to sell some of their beer to-go or distribute it directly within certain limits, further demonstrating their dual role outside the traditional three-tier structure. In contrast, the other options fall within the more regulated boundaries of the three-tier system, where the separation of each tier's function is maintained. For instance, grocery stores selling beer still rely on licensed distributors, and liquor store chains operate under strict guidelines that dictate distribution to retailers. Similarly, an importer selling unpasteurized beer must adhere to import regulations and typically cannot bypass the established tiers for distribution.