Who are distinct exceptions to the three tier system?

The three-tier system in the alcohol beverage industry consists of manufacturers (breweries), distributors, and retailers. However, small breweries or brew pubs often operate under regulations that allow them to navigate outside this strict tiered structure.

These establishments can typically produce their own beer and sell it directly to consumers, often on-site, and they may also have the option to sell to retail outlets without going through a traditional distributor. This ability to connect with consumers directly is a significant exception to the three-tier system. The intent of such exceptions is to support local businesses and promote craft brewing, which can often be at odds with large-scale operations that adhere strictly to the three-tier distribution.

In contrast, large corporations tend to follow the standard three-tier system due to their size and the complexities of managing extensive distribution networks. Independent distributors operate within this structure as intermediaries and cannot function outside it. Retail chains, while they may have more negotiating power or unique business models, still comply with the framework established by the three-tier system. Thus, small breweries or brew pubs stand out as the distinct exceptions due to their ability to directly connect with consumers and sometimes bypass traditional distribution pathways.