The three-tier system in the beverage industry provides a structured distribution model, ensuring accountability and market stability. Distributors are licensed to purchase products exclusively from federally and state-registered manufacturers, selling only to establishments with state retail liquor licenses. This system fosters competition and a vibrant marketplace by sourcing products from various stakeholders, including importers, brewers, vintners, and local producers. Distributors, like Classic Brands, promote fair competition, granting both established and emerging brands equal opportunities.