TRIP REPORT

Leaders from DISCUS, ABL, WSWA and NBWA came together to speak about how industry trade associations are helping the alcohol industry navigate challenging times. by JEREMY NEDELKA

Regulators, policy makers and industry personnel from across the three tiers met for the 32nd year at NABCA’ s annual Legal Symposium this past March. The event covered topics from cannabis to data privacy to ethics, focusing on changing consumer preferences and legal requirements.

In a session titled“ New Regulatory High-ts,” panelists in a lively discussion described how cannabis and hemp beverages impact the overall alcohol industry. MMBA Executive Director Paul Kaspszak said Minnesota liquor stores are the largest sellers of THC products in his state, selling both beverage and edible forms.“ A lot of our members are pursuing standalone cannabis stores,” he added. As in many other states, pending legislation will outline where and how retailers may sell those products.

Turning to data privacy, NC ABC Director of Permitting, Auditing and Product Missy Welch detailed North Carolina’ s privacy protection efforts. The state needs to maintain compliance with laws governing record requests while also protecting customer information, she said. For control state agencies that operate as a profit-making public entity, that’ s a universal challenge.

Since the Legal Symposium took place during March Madness, the session about celebrity endorsements in the age of NIL deals in the NCAA was timely. More than 30 states allow student athlete compensation, according to NABCA Associate General Counsel Harrison Martingayle. However, he added, many prohibit“ vice” products like alcohol from those deals. GrayRobinson Senior Associate Hannah Becker

DISCUS Asst. General Counsel Bob Budoff( center) talks about regulations surrounding cross-over products.

addressed collectives known as commercial co-ventures that operate in a gray area as a buffer between alcohol brands and student athletes, signing deals and sending a percentage of that revenue to college’ s compensation pool.

Cross-over products( generally single-serve malt, wine or spirit-based products with an ABV between 5−15 %) are hot with consumers, and generated a lot of buzz at the event. In a session covering cross-over product compliance, DISCUS SVP of Legal and Regulatory Affairs Bob Budoff explained that five states have cross-over laws on the books, with Colorado developing legislation. Most specify that non-alcohol and alcohol versions of similar products can’ t be located near each other in retail outlets, and some require signage telling consumers the products contain alcohol.

The Trade Association Updates panel featured four leading alcohol lobbying groups, DISCUS, WSWA, NBWA and the American Beverage Licensees. Despite differences among their members, DISCUS CEO Chris Swonger says they’ re addressing challenges like“ forces coming after the beverage alcohol industry.” He cited the need to remain unified as they respond to those challenges and continue to promote

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