NBWA Recap
NBWA president and CEO Craig Purser .
Discussions on THC and Beer Dominate NBWA ’ s 87th Annual Convention
by KRYSTINA SKIBO
The National Beer Wholesalers Association ( NBWA ) wrapped up its 87th Annual Convention and Product Showcase in San Diego on October 1 . Filled with 1,700 distributors and beverage professionals and over 150 booths , this year ’ s event proved to be another successful endeavor for the organization .
The opening general session began with an acknowledgement from NBWA outgoing chairman Jim Fabiano on the recent devastation throughout the southeast from Hurricane Helene .
“ There will be a long road to recovery and we are taking action as an association to provide support during this difficult time ,” he said . “ In 2017 , the Independent Beer Distributors Relief Fund was established in Texas following the destruction of Hurricane Harvey . This fund will be making an immediate donation of $ 25,000 , which NBWA will match .”
Following the convention , NBWA announced a combined $ 75,000 donation to the North Carolina Disaster Relief Fund to aid recovery from Hurricane Helene , as well as continued fundraising efforts to support communities affected by Hurricane Milton .
THE UNSTEADY STATE OF BEER
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 category 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 slow-down , 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 , 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 ’ ENTRANCE INTO THE INDUSTRY
While whispers about beer ’ s uncertain future circled NBWA ’ s event , another striking trend made its presence known in just about every session : cannabis-infused beverages .
Fabiano mentioned at one point how the industry has been “ grappling with how to handle the 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 make it an undesirable market .
Christopher Lackner , executive director of the Hemp Beverage Alliance , addressed these issues along with other concerns during his seminar “ What is the Future of Hemp-Infused Beverages ?”
“ The state-by-state changes are significant and it ’ s some-
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