The National Beer Wholesalers Association (NBWA) has named Gordon Green the chairman of its board of directors for the 2022-2023 cycle, taking the reins from outgoing chair Peter Heimark of Heimark Distributing.
Green is the president and general manager of Oklahoma City-based Capital Distributing, a Molson Coors wholesaler he joined 20 years ago after completing a leadership training program sponsored by Coors Brewing.
“I wasn’t born into the beer distribution business,” Green said. “I took a different path to get where I am today. I suspect that is the case for many in this room as well. But I believe my life experiences have positioned me as a strong advocate for this industry, particularly with our current challenges and opportunities.”
In his address to the 85th annual NBWA convention, Green outlined major challenges members of the trade group are facing, including forced terminations by suppliers, which he said highlight the importance of franchise law.
“For instance, recent terminations by suppliers without cause, remind every one of us the value of franchise or fair dealing laws,” he said. “As we expand our variety of products, we must be vigilant to maintain these laws, and be mindful that they may not apply to our entire portfolio.”
Green called for the preservation of franchise laws – the lack of which in California has wreaked havoc among independent middle tier businesses.
“These safeguard all of our longstanding investments, but they also maintain our critical independence,” Green said. “This independence provides a check on dominant suppliers and retailers. It prevents them from blocking their competitors or limiting consumer access by restricting distribution.”
Terminations have plagued wholesalers, particularly in California following the Reyes Beer Division’s expansion in the state. Last month, Sierra Nevada terminated three long-time distribution partners, Antioch-based Markstein Sales Co., Imperial-based Alford Distributing and Milpitas-based Bottomley Distributing Co., and moved its business to Reyes subsidiaries.
In a panel discussion later in the session, Sierra Nevada VP of sales Ellie Preslar said the company “work[s] to continually evaluate and understand what is the best business partner for us, short- and long-term.” She added that terminating long-held relationships is “not a decision that we make lightly or easily.”
“We do have to look at the efficiencies and allocation of our team and our resources in each individual market with our wholesalers – really taking that kind of long-term lens of what we need to create and where we believe we’ll find the best partner that’s going to be successful long term in the market and investing in our brands,” Preslar said.
Independent California wholesalers have been on the receiving end of so-called “black roses” from Constellation Brands (purveyor of popular Mexican imports Modelo and Corona, two of the best-selling beers in California), New Belgium, Athletic Brewing, and Diageo Beer Company in favor of Reyes for several years.
Constellation terminated Markstein in early 2022 in a move that also included the termination of Visalia-based Bueno Beverage.
Green urged NBWA members to consider the importance of franchise laws – the lack of which in California has wreaked havoc among independent middle tier businesses.
“These safeguard all of our longstanding investments, but they also maintain our critical independence,” Green said. “This independence provides a check on dominant suppliers and retailers. It prevents them from blocking their competitors or limiting consumer access by restricting distribution.”
Other priorities for Green’s tenure include protecting beer’s interests from soft drink producers trying to encroach on its territory at retail. Earlier in his career, Green spent eight years at PepsiCo and two years at Coca-Cola in various sales and operations roles.
“I have seen both business models firsthand, and a main difference between the two is regulation,” he said. “Now, regulation is often a dirty word, but it is essential to maintaining the vibrancy of our industry as well as protecting public health and safety.”