Beverage Dynamics Winter 2024 | Page 5

ON THE WEB

NBWA 2024 : Beer Down , THC Drinks Up by KRYSTINA SKIBO

The National Beer Wholesalers Association ( NBWA ) wrapped up its 87th Annual Convention and Product Showcase in San Diego on October 1 . Even though the Golden State event was filled with speeches and presentations on the beer category ’ s resilience , there ’ s no denying the fear that permeated the walls of the Manchester Grand Hyatt hotel .

The beer market is still struggling — there ’ s no denying it . With increasing prices , an overly saturated craft beer market and rising preferences for no- or low-alcohol choices , brews have become a second choice for consumers .
“ About five years ago at this convention , NBWA decided to talk openly about some of the challenges facing the beer category ,” said NBWA president and CEO Craig Purser during the opening general session . “ Since that time , these challenges have only grown , particularly among emerging LDA consumers . But now , beer is not alone .”
Just a few years ago , the spirits industry seemed to be immune from any slowdown , but not anymore . “ Wine is likewise seeing some startling volume declines ,” Purser continued . “ Even liquor-based RTDs , which had been on a rocket ship ride up , are starting to lose some steam .”
On top of softening beer sales , outgoing NBWA chairman Jim Fabiano mentioned another challenge the industry is facing during the opening general session : big beverage makers ’ entry into alcohol .
“ When Coca Cola , Monster and Pepsi entered the licensed beverage arena , two of those companies decided to go to market with experienced alcohol distributors ,” he said . “ As you know , Pepsi first tried to go in another direction by forming their own corporate-owned wholesaler , Blue Cloud .”
This decision sparked a wide variety of stakeholders , including state alcohol regulators , public health , consumer organizations , state legislators and members of Congress to weigh in , raising questions about responsible marketing and trade practices .
Then , earlier this year , Pepsi announced they were making changes to their distribution and working to move its Hard Mountain Dew and other alcohol products to licensed , independent alcohol beverage distributors .
“ We don ’ t know the long-term impact of their decision , but it sends a strong message about the strength of independent distribution ,” Fabiano said .
CANNABIS BEVERAGES
While whispers about beer ’ s uncertain future circled NBWA ’ s event , another striking trend made its presence known in just about every seminar : cannabis-infused beverages .
Fabiano mentioned at the opening general session about how the industry has been “ grappling with how to handle the
www . beveragedynamics . com commercial opportunity and the regulatory uncertainty of hemp-derived THC beverages .”
Even though there is clearly a money-making opportunity with distributing cannabis beverages , the strict regulatory pressures alongside federal prohibition can make it an undesirable market .
The legislation coming out on hemp and cannabis may give you whiplash , but most of it is intended to better the industry and create safer products for consumers . Take the 2018 Farm Bill , for example .
On Nov . 16 , 2023 , President Biden signed into law H . R . 6363 , the Further Continuing Appropriations and Other Extensions Act , 2024 , which extended the Agriculture Improvement Act of 2018 , more commonly known as the 2018 Farm Bill . This extension allows authorized programs to continue through Sept . 30 , 2024 , according to the U . S . Department of Agriculture .
Christopher Lackner , executive director of the Hemp Beverage Alliance , reiterated the need for an updated Farm Bill during his seminar , noting that the current bill “ has several trillion dollars worth of money invested in it , and the definition of hemp is all of three or four pages . The priorities that the Farm Bill had were big ticket items , such as value crop insurance , climate change , etc . And those are the big things that are on the ballots , which are significantly negative for our industry .”
“ MAKING MOVES ” RACKS IN RECORD ATTENDANCE
NBWA ’ s Building Relationships and Empowering Women ( BREW ) initiative and the Alliance for Women in Beer cohosted the largest Making Moves to-date , with more than 430 attendees joining the two-day event .
“ Since we launched Making Moves three years ago , it has rapidly grown into a must-attend event for beverage professionals in all stages of their careers ,” said Kim McKinnish , NBWA chief operating officer who leads the BREW and Alliance programs . “ Women and men alike come to Making Moves to find connections , leadership training and timely industry insights they can ’ t find anywhere else . We ’ re thrilled about the overwhelming response to this year ’ s event and look forward to continuing to deliver a world-class experience for beverage leaders .”
Former CEO of Barstool Sports , Erika Ayers Badan , kicked off the event with an electric keynote about how to set your career up for success . “ I ’ m a huge proponent of failure ,” she said . “ If you are constantly putting yourself in a place where you ’ re uncomfortable and learning how to fail and get back up — it trains you to handle a lot .” •
For the full stories , visit www . BeverageDynamics . com .
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