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A common thread of positivity was shared by various industry association execs during Encompass' BevAge meeting in Denver earlier this wk. NBWA coo Kim McKinnish, WSWA prexy/ceo Francis Creighton, Brewers Assn prexy/ceo Bart Watson and Hemp Bev Alliance prexy/ceo Chris Lackner each expressed ways they're seeing more positive outlooks from their members on a panel moderated by BBD's Harry Schuhmacher. Even against the backdrop of weaker consumer sentiment, rising costs and, in hemp's case, a regulatory roadblock. There are "positive shifts" in sales trends with "some volume stabilization," and in the "narrative around health" and alcohol, Kim pointed out to kick off the panel. Bart echoed comments from recent CBC State of the Industry address, noting that "we're starting to hear more positivity" and "the vibe" at CBC "was certainly positive." There are still "losers in the market," but those are "smaller losers" now than they used to be, and trends are starting to improve collectively as larger growth numbers "compound." Tho "not great economic news in the first quarter," and mounting costs are still top of mind for Bart too. When his phone rings, it's "typically" about aluminum tariffs, but Bart's also hearing more than ever about "credit card fees," "music licensing," and other "general costs to run a business," adding that "we're focused much more on costs than we used to be." Costs are top-of-mind across the board, Kim added, pointing to fuel prices and health insurance costs for distribs.There's been "negativity in our industry for a while," said Francis. But it "didn't feel that way" at WSWA's Access Live convention as "people were interested in finding new brands" and "making new connections," and there's a wave of innovation from wine & spirits suppliers "particularly" on new, smaller package sizes, and "not just RTDs," he commented. Leaving his personal feelings "about the flavor" out of it, he marveled at BuzzBallz, a primarily wine-based product "like nothing else we've ever seen" that's "gotten younger LDA consumers really interested." Francis expects to see "even more of this kind of innovation as we go forward," and suppliers work thru different ways to utilize "really good product on the inventory" amid the CA "wine glut."And while consolidation across segments continues, becoming a total beverage distributor "works for some companies," but "not every company," said Francis. There are "a lot of wholesalers who are wine specialists, or craft spirits specialists," and they're going the opposite way, becoming "super focused" on their niche to "build these brands" and "maximize" the "value to retail and supplier partners." In either scenario, it's all about how to "best serve retailers in the most efficient way possible." Francis also expressed "concern about the larger economy" and the potential "long-term impact" of the war on "pricing pressures" across the supply chain. But he "remain[s] optimistic."Hemp Bev Industry is Ready to Run Thru Wall to Stick Around, Encouraged by "Increased Interest" from Congress, WSWA For Chris and his members, "we're absolutely bullish about the category," he said. There's "increased interest in Congress" to "find solutions," and "immense interest from what we call the legacy adult beverage category," with WSWA "in particular." Chris is encouraged by the 4 bills "out there" either seeking to regulate these products or "push back" the ban date, including politicians coming together across party aisles. He equated the hemp bev industry to Roadrunner and Wile E. Coyote cartoons, where Coyote would put up a "fake tunnel over a piece of rock" to try and catch the Roadrunner, but the Roadrunner still "runs right through the tunnel" anyways. Hemp bevs have "this giant roadblock and giant challenge coming up in November," and the product "could in fact be banned," he acknowledged. "But we're all roadrunners in this case and we're running full bore into it" 'cause "we know that the tunnel is going to open up." So "hopefully the laws of physics change by this November," Harry quipped. Beep beep.Other trade assn execs all were on the same page about increasing regulatory clarity for intoxicating hemp products, yet WSWA is the alc industry org most outwardly embracing the category. NBWA members "are not aligned on this topic," Kim underscored. Latest member survey showed a "nearly exactly" 50/50 split for and against selling hemp THC bevs thru beer distribs. "Nearly 50% are carrying" the products, "building brands" and they're becoming a "meaningful part of revenues" in states that have regulation. But as an association, NBWA "has not taken a position" and is "not supporting active legislation." "What we are is pro regulation," she clarified. BA members are also "a mix," and "very much" in the "same place" as NBWA, Bart added. "We don't have unanimity either," Francis assured, stating that "we do want to hear from members" and if you're "not part of it," you're "not advocating."

Positive Vibes Amid Challenging Circumstances; NBWA, WSWA, BA and HBA Assn Execs at BevAge

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