Incoming National Beer Wholesalers Association (NBWA) chairman Jim Fabianao II stressed that distributors “must control our own destiny,” in his first speech during Tuesday’s Annual Convention general session in Las Vegas.
“Building a successful future for our industry requires that we meet the moment and show leadership for the entire beer category,” said Fabiano, president and CEO of independent Anheuser-Busch (A-B) distributor Fabiano Brothers Distributing in Bay City, Michigan. “We can’t do it alone. We can’t wait for our suppliers to provide solutions to these challenges.”
Among the themes of the 2023 NBWA Annual Convention has been portfolio diversification as consumer preferences shift and as A-B wholesalers deal without the fallout from the conservative-led boycott of A-B’s Bud Light brand.
“I may not like social media and the influence it has on people, but in general, the beer industry has been very good to us,” Fabiano said. “The future of beer and beverage distribution is bright and there is no doubt in my mind, continuing to make the future bright will require hard work.”
Fabiano said NBWA members must work together to reverse category-wide softness and fend off a host of other challenges, including:
- Franchise law reform;
- A governmental review of competition in the beer industry;
- Attempts to expand market access and reduce taxes for spirits-based ready-to-drink offerings;
- Soft drink giants entering bev-alc;
- And efforts to expand direct-to-consumer sales, including direct-to-consumer deliveries through the U.S. Postal service.
Fabiano advocated for protecting the three-tier system, a theme of every NBWA meeting, and supporting the trade organization’s state and federal advocacy efforts. He also questioned why “liquor in a can be taxed differently than liquor in a glass,” and noted that soda giants and multinational CPG companies would be welcomed into the industry “as long as they play by the same rules as everyone else.”
“We will not stand idly by against efforts to circumvent the three-tier system or the potential for a pay-to-play model in the alcohol space,” he said.
Throughout his speech, Fabiano stressed the importance of maintaining wholesaler independence and called out attempts to micromanage distributors, such as pressure to use specific ordering platforms.
“We are the only ones who must be determining how we do business with our retail customers and distributors’ data and information must remain just that, our data,” he said.
“Whether the battle is in Congress, the courthouse or the statehouse, we will not back down from defending our investments,” he continued. “What it means most of all is that we must be the architects of our own destiny. We can value our long-standing partnership with suppliers and retailers while recognizing that nobody outside this room shares our level of investment and prosperous future for the destiny distribution industry. The NBWA is a vehicle for us to invest in the future.”