“Despite challenges to the supply chain and from the virus, beer distributors are shining like never before,” Craig Purser, president, National Beer Wholesalers Association, told the group’s 84th annual convention.
With news stories suggesting supply chain issues will disrupt Christmas, Purser said that “when other products face distribution issues, you get through. You make changes, operate safely and give Americans a sense of normalcy in a very abnormal time. You help launch new products even without the on–premise channel, something everyone thought was the exclusive way to introduce innovations.”
These may be the best of times for beer wholesalers, he suggested.
“In recent years we’ve seen a staggering number of new products: new seltzers,
new spirits and wine–based products, new ready to drink cocktails, low alcohol beers, no alcohol beers, better–for–you beverages. . . . Canned spirits from beer companies, canned cocktails from wine companies, spirits from wine companies, wines offered by beer companies and low–proof spirits products all rounding out a load headed from your warehouse to your retailer’s shelves.
“Recently, global soft drink makers have announced their interest in entering the alcohol beverage space. And even a fast–food retailer is making a hard seltzer,” Purser said, adding;
“And most of these manufacturers want to be on your truck.”
“The spirits industry wants what you’ve got too,” he said, explaining that “innovation isn’t limited to seltzers as a combination of existing spirits producers and new market entrants are cashing in on seltzer’s success with the creation of ready–to–drink cocktails.
“They want access to your trucks, but more importantly, they want access to your retailers’ shelves and cold box.”
That’s why Purser believes “this may be the most expansive time in our industry.” And NBWA has expanded it’s focus, he said. “We have been working to protect the equity in ALL beverages that you distribute.
“We’ve offered legal guidance related to new contracts and distribution agreements for wine and spirits and non-alcohol products. We’ve filed Amicus Briefs in cases where suppliers have unfairly terminated distributors….
And we’ve lobbied Congress and the FDA regarding emerging beverages containing CBD.”
With changes in the industry, NBWA has changed its logo to NBWA: America’s Beer AND Beverage Distributors. The new moniker, Purser said, “reflects who we are, where we’ve been and where we’re going.”
The NBWA CEO noted that the spirits industry is “cheering on” some in Congress “seeking to advance ill–conceived policies and preempt state alcohol laws.” Spirits is seeking tax equivalence at the state and federal level. Spirits wants “to go around their distributor customers and their retail partners,” pursuing a direct-to-consumer agenda.
But Purser did not stop his criticism with the Ditilled Spirits Council of the U.S. “We were disappointed but not surprised to see the Brewers
Association weigh in with an 11th hour, no–holds–barred criticism of the state regulatory system,” he said, adding:
“This is the height of irony because, in many states, craft brewers enjoy privileges that others do not, including direct-to-consumer sales and self-distribution. Small brewers also enjoy lower excise tax rates. It is also worth noting that some of the states with the strongest fair competition or franchise
laws are also the states with the highest number of breweries per capita.”
Returning to a recurrent concern at NBWA conventions over the years, Purser noted that several suppliers canceled long-term distributor contracts. “These actions greatly reinforce the validity and need for fair dealing laws that keep the industry competitive and allow distributors to continue to take on new products and build new brands,” he said.