and guidance but has also helped NABCA achieve significant success across various mission-critical programs .”
Elsewhere during the conference , talk turned to the troubling , ever-present issue of inflation .
“ It ’ s too soon to say we see clear evidence of inflation down trending , but it ’ s something that we ’ re all measuring ,” said Eddie Wirt , NABCA CFO , during the panel on this economic subject .
He pointed out how inflation for alcohol has not matched spiking costs at the grocery store .
“ Off-premise food pricing is up 50 %, while with alcohol , you ’ re looking more at 20 %,” Wirt observed . “ I ’ m not advocating price increases in our industry . Rather , I ’ m saying that the suppliers have done a good job holding down the prices .”
What if the U . S . economy slips into recession in 2023 , as many financial experts have forecasted ?
“ Most analysts suggest that premiumization will carry the day through a recession ,” Wirt said . “ Premium products remain an affordable luxury .”
Still , the alcohol industry , like all others , has endured the negative impact of inflation . Tim Davis , E . & J . Gallo Winery Director of Strategic Distributor Collaboration-Supply Chain Management , pointed out eye-popping price increases . The cost for glass is up 8 %, grapes are up 10 %, land freight 35 % and ocean freight 50 %.
The result is a tricky situation . “ Where can we push price that ’ s reasonable ? Where can we cut costs without sacrificing quality ?” David said . “ That ’ s all delicate .”
Some good news : Davis has seen some declines or plateaus in the price of land freight in the last few months . And shipping contract rates are leveling off . However , the shortage of long-haul truck drivers — a problem that existed pre-pandemic — remains a difficulty . “ Forty to fifty thousand of these drivers are soon retiring , and nobody new wants in ,” Davis said .
The panel “ The ABC ’ s of DEI ” featured Dr . Renay Scales as speaker , a highly decorated executive and thought-leader on the subject .
Moderator and NABCA board member Becky Schlauch of Montana ( left ) and Dean Argo of the Alabama ABC ( far right ) both spoke during the conference .
Best Practices Award winning teams from the Pennsylvania Liquor Control Board ( top left ), New Hampshire Liquor Commission ( top right ), Ohio Division of Liquor ( bottom left ) and Montgomery County Alcohol Beverage Services ( bottom right ) accepted their plaques in Pittsburgh .
“ It takes an interest and an investment in organizations for DEI to work ,” she said . “ If you learn how to do anything , learn how to listen to people . You get your greatest learning through listening .”
“ Some people might have diametrically opposite viewpoints than you ,” she added . “ You have to learn how to hear , and that might mean being uncomfortable for some time before you learn what you need to know .”
Among the most important things to know , she argued , was what has shaped people ’ s identities before and in the workplace . Understanding what individuals have gone through to get to where they are , and where they continue to be .
What ’ s the correct amount of DEI in a company ? Scales said to research the demographics of your markets .
“ Make sure it ’ s a meaningful objective that you ’ re trying to accomplish , based on data from the markets in which you operate ,” she said . “ This way , you ’ re not just hiring ‘ one of these and two of those ’. That ’ s what we did in the ‘ 70s and ‘ 80s . We called that the ‘ candy store model ’. A few lawsuits helped us get away from that .”
In the end , with proper listening , data-based goals and empathy for an individual ’ s journey , “ You will create opportunity for effectiveness in empowering people ,” she said , “ and create spaces where people feel like they belong and feel like they can be their best .” •
6 StateWays | www . stateways . com | Winter 2022