tories for our industry – like keeping anti-competitive tax provisions out of last year ’ s Inflation Reduction Act .”
Fabiano was among many speakers who stressed the need for beer wholesalers to collaborate and fight against forces now pressuring the industry . Much praise was directed this way towards the successful and ongoing legislative efforts by NBWA and its Political Action Committee ( PAC ).
Another common observation was that the “ core beer ” portfolio , while in decline , still represented the foundation of a wholesaler ’ s business . A survey conducted among conference attendees found that “ core beer ” currently represented 80 % of their overall portfolio . However , five years from now , attendees believed that that number would shrink to 70 %.
“ That ’ s still a big number ; that ’ s still keeping the lights on ,” said Shannon McQuade-Ely , of McQuade Distributing in North Dakota , during a panel on the future of beer distribution . Nevertheless , in recapturing the attention of younger drinkers who have increasingly turned to other categories , “ It ’ s very important for us to look at beer as brand ,” she added . “ And for that we need to ask for help from the producers and retailers .
McQuade-Ely mentioned her work with the NBWA ’ s Beer First Initiative , which provides data and promotional materials meant to showcase the value of beer . Tools include sell sheets that can be customized for every market , and on- and off-premise profit calculators to show accounts and retailers how beer can be more profitable than other alcohol options . Throughout this summer , the Beer First Initiative rolled out new resources to participating distributors , with the aim of continually boosting the beer category .
Opportunities for growth , many speakers and vendors believed , will come in the form of occasion-based consumption . As younger LDA drinkers consume less alcohol , grabbing their attention may be a matter of tying a product into a certain part of their regular routine . Hence why many products in the vendor hall had branding focused on the gym , the golf course , the beach or other specific occasions .
“ Beer is the drink of getting together with friends and family , and when you ’ re at a BBQ or a ballgame , most people are reaching for an ice-cold beer ,” Green said . “ But we cannot be complacent as other alcohol beverages continue to gain market share . We all need to be laser focused on bringing the category back to growth for all of our portfolios .”
Echoing this sentiment was Lester Jones , NBWA Vice President , Analytics and Chief Economist . During his economic briefing — beyond explaining the resiliency of the U . S . economy post-Covid — Jones shared data that suggested that the number of active beer drinkers in America had actually increased slightly since 2012 .
“ There are absolutely more drinkers in the market today ,” Jones said . “ There may be less frequency and less volume , but the market is there . Consumers are here and willing . We just have to convince them that beer is the right choice . We have to focus on the occasion . We ’ re occasion-driven .”
Tony Tallo , Senior Director , Wholesaler Services & Communication at Anheuser-Busch with Kyle Swartz .
Another potential threat to the middle tier comes in the form of global drinks giants like Coca-Cola launching their own alcohol brands . What if these conglomerates , with their own distribution infrastructure , decide to distribute these new products ?
Perhaps to assuage these concerns , the NBWA welcomed on stage to speak Dan White , Coca-Cola North America ' s Chief of New Revenue Streams . Beyond the company ’ s massively successful Jack Daniel ' s & Coca-Cola RTD collaboration with Brown-Forman last year , Coca-Cola this summer created its own alcohol division , Red Tree .
“ We have no plans to distribute ,” White assured attendees . “ We picked the lane that we do best . We ’ re here to develop unique products and unique brands and bring them to market . We ’ re not here to crash the party . We think we can help drive growth for everybody in the room .”
It was a moment of optimism among messaging at NBWA 2023 that ranged from cautious alarm to a calling of arms to reassurance about the future .
As Fabiano assumed the chairmanship , he shared a sunny outlook . “ The thing about challenging times — they create opportunities ,” he said . “ We have the opportunity before us to build a sturdy , dynamic future for beverage distribution .”
“ The way beer brings people of all backgrounds together to enjoy one of life ’ s simple pleasures — my friends , that will never change ,” he added . “ As we embrace innovative products as part of our beverage portfolio , we must never lose sight of the unique value that beer brings to our distributorships . And we must all continue to do our part to bring the next generation of legal age drinkers along for the ride .” • www . beveragewholesaler . com Winter 2023 • Beverage Wholesaler 7