Beer Marketer's Insights - Amidst Challenges and Change, NBWA in Vegas Pointed to Possible Paths Forward; Accomplishments; Undercurrents

Over 2800 people in beer and bev industry gathered at NBWA convention in Vegas Oct 12-14, amidst the worst volume trends in beer in over 50 years. Yet more distributors and more people showed up than in any recent yr. And the vibe was often energized, action-oriented and seeking change. "We are in the solutions business," NBWA prexy Craig Purser said in speech, quoting OH distrib exec Greg Hipp. And potential solutions, opportunities and areas for improvement abounded, whether in technology at NBWA's innovation showcase or on floor, all the new bevs on exhibit floor (including lots of D-9), or during program and seminars. Then too, NBWA "put some big wins on the board" in 2025, as Craig said and outgoing chair Rebecca Maisel detailed. But there were also undercurrents of division and strain, whether between brewers and wholesalers or sometimes even between wholesalers. Favorable Fed Developments; Tax Bill Passed, Dietary Guidelines "Redirected," Exec Order "Revoked" NBWA prexy Craig Purser painted this paradox: "The industry hasn't been pretty when it comes to volume sales." Yet NBWA's advocacy agenda scored big wins "on taxes and in the regulatory environment." This year's tax bill was "a once in a generation win," said Rebecca, pointing to "leadership role we played" (NBWA one of a large # of orgs lobbying for this). "Now we have permanent tax certainty for pass-throughs." NBWA "also worked with other alcohol industry associations to manage the ongoing conversations around the U.S. Dietary guidelines, and we successfully redirected the dialogue around alcohol back to the overwhelming body of credible research and away from the rhetoric of anti-alcohol advocates," said Rebecca. And NBWA helped convince the White House to revoke a Biden-era executive order on competition leading to report that, in org's view, "mischaracterized facts about distributors," added Rebecca.Beer as "Sociability" Enhancer Advanced as an Answer From Garage Beer's Jason Kelce to Bernstein analyst Nadine Sarwat (from UK) and other speakers on NBWA program, beer's role in building connections between people was a recurring theme. "Nothing beats that moment" of truly connecting with someone over a drink, Nadine said. That story can be "super compelling" and needs to be told, especially in a world where loneliness and mental health issues on the rise. Beer "brings people together," said Garage Beer part-owner and former NFL star Jason Kelce in live video discussion. "A lot of my best memories" have been shared with a beer in hand. "It's near and dear to my heart. The culture of it. What it means in community, family." Jason urged folks not to lose track of what beer has meant through time and different cultures. "That's a commonality, an accessibility," a way for people to spark conversation, friendship and connection. Hear, hear. While emphasis on sociability won't solve all beer's present ills, it is also the key message in Heineken's new campaign (see below) and it's a big part of what has made beer great throughout the ages."Pressure from Suppliers"; NBWA Critiques; Division in Ranks? Could enhanced sociability improve relations between suppliers and distribs? Unclear, but those relations not all rosy lately. Craig and Rebecca stepped into the fray, without naming names, of some battles AB is having with wholesalers in recent mos (forced sales, taking Nutrl away from AB distribs in CA, etc). Craig more broadly talked of "pressures from suppliers" including "technology mandates, onerous performance standards, jamming inventory and pricing pressures," while also mentioning forced sales and threats of termination. Rebecca talked about how in such situations, "the impact isn't isolated, it reverberates throughout the system."Yet not all AB distribs happy that NBWA taking on these issues publicly; some don't think this should be NBWA's role, at least partly because it also increases pressure on them. Still, other sources suggested distribs need to look in mirror more, meaning they have their flaws too. In meeting at NBWA with distribs, Boston Beer's Jim Koch pointed out how some distrib capabilities had "eroded" post-COVID, on-premise especially. But he also offered program to invest more with distribs. "The blame game's gotta stop between suppliers and distribs," said RBC's Nik Modi during NBWA panel, instead calling for alignment and evolved marketing.AB Less Present at NBWA? An Unusual Guest at AB's Party For the first time in memory, AB didn't have hospitality space on the exhibit floor, tho it did have a party. In another twist, some distribs who attended the party among those being forced to sell. While AB brass there, AB prexy Brendan Whitworth couldn't make it (at ABI board meeting, sources said). He was the only prexy among top 6 suppliers not at NBWA. One surprise guest at AB party turned a lot of heads: Reyes Beverage Group ceo Tom Day was there, reportedly at the invite of vet AB exec Bob Tallett. The times they are a changin'.NBWA Sold Out Exhibit Floor; Hemp Divisions; Moving Forward NBWA exhibit floor sold out, including a couple dozen D-9 exhibitors. More changing times. While some distribs rush to embrace D-9, others wouldn't touch it with a 10-foot pole, unless there's more legal or regulatory clarity. That includes nation's largest distrib RBG, actively lobbying at the highest levels to close the hemp loophole. While WSWA (wine and spirits distrib assn) unabashedly pro-D-9 bevs, NBWA hasn't really staked out a position and its membership divided. Just another area where industry and even associations aren't unified. NBWA had a successful convention: big crowds, topical content, high energy, but it also exposed some fault lines that will likely need to be better resolved as beer industry seeks to move forward.

Amidst Challenges and Change, NBWA in Vegas Pointed to Possible Paths Forward; Accomplishments; Undercurrents

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