Outgoing National Beer Wholesalers Association (NBWA) chair Rebecca Maisel stressed the importance of distributor independence from “undue supplier influence” in making business decisions, during her opening remarks at the trade group’s 88th annual convention in Las Vegas.
Maisel’s remarks come as Anheuser-Busch InBev is reportedly attempting to terminate as many as 10 of its distributors for what is believed to be selling outdated products, namely Busch Light Peach.
During an early morning presentation, attorney Michael Madigan said the distributors in question were “small, rural wholesalers who are not going to be litigating an 800-pound gorilla in a battle that takes years and probably seven figures to litigate.” Those distributors were presented with the option to sell their businesses or be terminated within five days, without filing formal notice explaining the deficiencies or giving the distributors an opportunity to respond, he added.
During her speech, Maisel, in her 11th and final year on the NBWA board, called the ability to make independent business decisions “critical” – “from the brands and suppliers we choose to partner with, to how we price our products to the trade, to the way we go to market.” She pointed to distributor-supplier partnerships being “the lifeblood of our businesses” and built on “respect.”
“But is it deeply disappointing when that respect isn’t returned,” said Maisel, who is Gulf Distributing VP of legal and governmental affairs. “Strong partnerships depend on trust and follow-through from both parties. When multi-generational distributors are terminated or forced to sell, the impact isn’t isolated, it reverberates throughout the system.
“It not only affects those families, their longtime employees, and the local communities they serve, it erodes trust and shakes confidence across every network: blue/silver, red, and gold,” she continued. “Our memories aren’t that short. The reality is that everyone in this room partners with a supplier that has, at one time or another realigned (or attempted to realign) their brands, or force wholesaler consolidation, pulling the rug out from under family businesses.”
The NBWA has supported those wholesalers “coming under fire,” with the board,
leadership, staff and state association partners giving “advice, guidance and best practices,” Maisel said.
“Moments like these remind all of us why we continue to invest in this association,” she said, adding that this is also a “reminder of why state franchise laws remain so vital.”
“We are constantly reminding all stakeholders that everyone must play by the rules, including suppliers,” she said. “This work is critical to our mission.”
Maisel recalled her remarks at the 2024 NBWA convention, when she implored distributors to return to the basics, focus on quality and “provide world-class service” to on- and off-premise retailers “even when the work is hard and even when the drops aren’t profitable.”
“We’ve all made a commitment to do that, and we are going to stick to our word,” she said.
Maisel also addressed challenges in the industry as alcohol sales “are flat to down,” and headlines searching for answers, including immigration raids, post-COVID “right-sizing,” GLP-1 drugs, the Make American Healthy Again (MAHA) movement, Generation Z, severe weather, high interest rates, tariffs and inflation.
Even amid category struggles, there is growth in ready-to-drink cocktails (RTDs), non-alc (NA), functional beverages and hemp-based THC drinks, Maisel continued.
“If intoxicating products are sold in alcohol channels, they need to play by alcohol’s rules. It’s on all of us to seek those regulations for this emerging category.” Maisel said.
Producers of all of those beverages also are seeking space on beer distributors’ trucks, she added.
“We are sales, service, and logistics experts,” she continued. “As industry change accelerates, it’s our job to hold on to our competitive advantage.”
Maisel also offered reasons for optimism within beer, including light lagers Outlaw, Garage Beer and Montucky growing in a soft beer market; growth of NA beers; upward trends for established brands Coors Banquet, Michelob Ultra, Pacifico, Guinness, Busch Light; flavored beer and small format offerings Voodoo Ranger Mini Rippers finding an audience with health conscious consumers.
“Beer drinkers are here; they’re just distracted,” she said. “We have to lean into the benefits of beer and win back occasions.”
Maisel also highlighted the NBWA’s role in several government affairs wins for its members, including the passage of the Trump administration’s tax bill and the rescinding of the the Biden-era executive order on competition.
“Now, we have permanent tax certainty for pass-throughs, and we can more confidently invest in our operations and communities and continue to plan for the future,” she said. “A tax hike would have been the last thing we needed this year.”
During Tuesday’s general session, Maisel passed the baton as chair to Eagle Beverage Group (Frontenac, Kansas) president and GM Steve Beykirch.