Beer distributors from all 50 states arrived in Washington, D.C., this week for the 2015 National Beer Wholesalers Association (NBWA) Legislative Conference to advocate for effective state-based alcohol regulation and to educate members of Congress about the regulatory, economic and commercial value that independent beer distributors provide.
NBWA President & CEO Craig Purser shared new data from a survey of NBWA distributor members that revealed:
· 92% of distributors carry products from at least one local, in-state brewer
· 96% of those distributors carry multiple brands of local brewers
· 96% say in-state brewer sales are up
· 94% of distributors have added at least one new brewer partner in the past year
“These numbers show that distributors are supporting the growth of new brewers and helping start-up, local brewers reach new markets and new consumers,” Purser said.
Purser also referenced a report from The Boston Consulting Group that says today’s independent system of alcohol distribution is “freely competitive and driven by consumer choice.” It goes on to explain how this system – and state alcohol laws – creates an open market for brewers of all sizes, large and small.
Purser added, “All industry participants – and all of their success stories – are built on that foundation of effective state regulation of alcohol as provided by the 21st Amendment.”
America’s beer distributors are encouraging members of Congress to support state-based alcohol regulation and oppose proposals that would weaken this effective system that ensures safety, variety and value for consumers and communities across the nation. Beer distributors also are asking members of Congress to co-sponsor the Sober Truth on Preventing (STOP) Underage Drinking Reauthorization Act, which is necessary to coordinate support for federal efforts in the fight against underage drinking. The legislation also reaffirms the effective state-based regulation of alcohol.
As Congress considers proposals for tax reform, America’s beer distributors are encouraging Congress to pass comprehensive tax reform that ensures individual and corporate tax rates are reduced in similar manners; treats S corporations fairly; avoids the repeal of LIFO inventory accounting; makes permanent the increased expensing level of Section 179 business expensing and bonus depreciation allowances; and provides estate tax relief that would assist family-owned businesses, like independent beer distribution companies, plan for the future. Should Congress advance excise tax legislation, beer distributors are encouraging Congress to support legislation that reflects current industry structure and includes all brewers.
Additional policy issues discussed by beer distributors include full funding for the Alcohol and Tobacco Tax and Trade Bureau (TTB) to ensure it can effectively regulate the alcohol industry in conjunction with the states; full funding of the Highway Trust Fund; tax credits for natural gas vehicles; review of the USDA’s Dietary Guidelines definition of a “drink”; multi-employer pension plan reform and withdrawal liability relief for small businesses.
Monday’s Legislative Conference program provided a look inside the industry with a panel moderated by NBWA President & CEO Craig Purser that featured American Beverage Licensees Executive Director John Bodnovich; National Association of Beverage Importers President Bill Earle; Beer Institute President and CEO Jim McGreevy; and Brewers Association CEO Bob Pease.
The panel focused on policy issues impacting the beer industry, including tax issues, trade practice enforcement and the importance of TTB funding. The discussion also highlighted the robust competition in the beer industry and the individual role of brewers and importers, distributors and retailers in a system that continues to provide more choice and variety for American consumers than anywhere else in the world.
In a conversation with MillerCoors CEO Tom Long, Purser and Long discussed brewer and distributor partnerships and the effectiveness of three separate and independent tiers in the beer industry.
“The three-tier system works,” Long said, noting the ability of independent distributors to serve their retail customers and give consumers the choice they want.
The program also included an update on the NBWA Next Generation Group and a “State of the States” report from Washington Post political analyst Reid Wilson.
