Special Convention & Trade Show Issue · October 2015

THE ROUTE

Message From the Chairman and the President: Welcome to Las Vegas!

elcome to NBWA’s 78th Annual Convention and Trade Show! We Whope you will enjoy this newsletter’s look at the activities of your association since NBWA’s Legislative Conference. While we are gathered here in Las Vegas, NBWA is excited to bring you a program packed with great speakers, 23 education seminars and a two-day Trade Show filled with more than 275 exhibitors featuring innovative products and services to help your business. Monday’s general session program will feature a “Four Under 40” panel of next generation leaders who will share their thoughts on the future of the industry, including Jay Ducote, Food Network Star finalist and founder of Bite and Booze; Daniel “D.H.” Harrison, co-owner and gen- eral manager of Country Boy Brewing; Ryan Lake, vice president at First Beverage Group; and Kurt Strickmaker, president and Better Beer Guy at BountyBev. Additionally, Captain Chesley B. “Sully” Sullenberger, the heroic pilot who landed a plane filled with passengers safely in the Hudson River, will share his inspirational story and discuss the value of planning, leadership and focus to help prepare for disruptions of any kind – whether in business or in personal life. On Tuesday, Jayson Street, “The White Hat Hacker,” will describe what security hacks are doing to access your per- sonal and financial information and what you can do to protect your family and your business. We’ll also hear from a panel of brewery industry leaders, including Ronald den Elzen, president and CEO of Heineken USA; Ken Grossman, founder of Sierra Nevada Brewing Co.; Bill Hackett, president of Constellation Brands Beer Division; Gavin Hattersley, CEO of MillerCoors LLC; and João Castro Neves, president North America for Anheuser-Busch InBev. And Candy Crowley, former chief political correspondent for CNN, will describe the current political environment and the issues that will take center stage in the upcoming presidential elections. We encourage you take full advantage of all this convention has to offer. Be sure to stay connected and engaged. Download NBWA’s convention app, tune in to NBWA-TV and join the conversation on social media using #NBWAVegas. Thanks for all you do for this great industry!

Eric Best Craig Purser 2014-2015 NBWA Chairman NBWA President & CEO Meet NBWA’s Incoming Chairman of the Board

Travis Markstein President Markstein Beverage Co. San Marcos, California

he Marksteins began distributing In the early 1970s, the three broth- Tbeer in California just six months ers split up the companies, but Adolph before Prohibition. For the next 14 and his three sons stayed in the beer years, Albert Markstein, Sr. sold malt business. Steve Markstein moved to syrup, near beer and soda pop from his Sacramento in 1971 and managed the house with a horse and wagon to make fast growing Markstein Beverage Co. ends meet. of Sacramento. In 1934, In 1988, Ken traded the Oakland the company business for an Anheuser-Busch dis- returned to tributorship in Northern San Diego selling beer County and moved his family and the from the company south. Golden West The fourth generation of Marksteins Brewing entered the family business in the Company 1990s. Today, Travis Markstein is the and, for the next 10 years, Albert and president of Markstein Beverage Co. in his three sons – Adolph, Al and Walter San Marcos, California, and his brother – worked together to grow the business Hayden Markstein is president of until Albert’s death in 1944. Markstein Beverage Co. of Sacramento. Continuing the business in their Between the two companies, the father’s footsteps, the three broth- Marksteins now sell more than 16 Action Committee before being elected ers acquired a distribution agreement million cases of Anheuser-Busch, secretary, treasurer and vice chairman. from the Constellation, Sierra Nevada and other “In his years of service as a state direc- in 1947. In 1951, they added Olympia craft annually and provide qual- tor for California and in every elected and, in 1953, they added Anheuser- ity jobs to nearly 500 highly motivated officer position, Travis has proven to Busch and changed the name to employees. be a dedicated and results-oriented Markstein Beverage Co. Over the The Markstein family knows the leader,” NBWA President & CEO next two decades, they operated nearly value of building strong relationships, Craig Purser said. “In 2012, he became a dozen different companies and sold participating in the political process the first chairman of the NBWA PAC many brands of beer including Pabst, and working with fellow distributors to break the $2 million mark – which Falstaff, Hamm’s, Heineken, Red Cap on policy issues. Nearly 70 years ago, was a significant achievement to ensure Ale, Blatz, and Brew 102. the Markstein family helped estab- that NBWA continues to maintain a lish the California Beer and Beverage top-tier PAC for years to come. He also Distributors. Since then, every gen- believes in engaging members, working eration of the Markstein family has with state associations and investing in continued the family tradition of lead- the next generation.” ership and engagement. Markstein holds an MBA and MFA Travis Markstein has served on from UCLA and a B.A. in English from NBWA’s Board of Directors since 2008, UC Santa Barbara. He lives in Rancho chairing the Innovation & Technology Santa Fe with his wife, Juliet, and their Committee and the NBWA Political two sons, Conrad and Cameron. NBWA Honors Bob Archer With 2015 Life Service Award

he NBWA Life Since 2001, Archer TService Award is has served as president given to beer distribu- and CEO of Blue Ridge tors who have dedicated Beverage Company, a a lifetime of service to family-owned and the industry, community –operated business Bob and Jim Archer With Kelsey Ginn, and fellow distributors. with locations in the First Recipient of the Archer Family This year, NBWA hon- Salem, Waynesboro, Scholarship ors Bob Archer, president Lynchburg, Abingdon and CEO of Blue Ridge and South Boston, Before working in the family busi- Beverage Company in Bob Archer at Blue Ridge Virginia. ness, Archer joined the U.S. Army in Beverage Company Virginia. He runs the com- 1969 and served as an officer with the Archer has dedi- pany alongside several 82nd Airborne Division. He also served cated more than 10 years of service family members, including his mother, in Vietnam with the 22nd Replacement on NBWA’s Board of Directors and Regine, and his brothers and sisters, Battalion until 1972. During his ser- held every elected position, serving as who all play a critical role in the busi- vice, he attained the rank of colonel. chairman of the NBWA Board from ness – Nancy Doucette, Jim Archer, Paul In 1999, Archer retired from the U.S. 2012-2013. Archer, Evelyn Hunt and Jackie Archer. Army Reserves and the Selective The first NBWA convention that Although the company began as a Service System after 30 years of mili- Archer attended was held in Chicago business in 1938, the Archer family has tary service. in 1973. Archer recalled, “At that con- led Blue Ridge since 1959 when James He has participated in numerous local vention, I never in my wildest dreams Archer and his wife Regine purchased charities and community organizations imagined I would serve as NBWA the company. After James Archer throughout his career, including those chairman.” passed away in 1972, Regine stepped benefiting the military and their fam- During his time as NBWA’s chair- in as president. This move was especially ilies. Archer also is involved with the man of the Board, Archer stressed significant given the small amount of Lewis-Gale Medical Center, Virginia member engagement as the secret to women in the beer distribution industry Chamber of Commerce, Virginia the continued relevance and future suc- at the time. Today, she still comes to the Tech Foundation, Virginia Center for cess of NBWA. He has led by example, office each day and serves Blue Ridge as Healthy Communities, the Military devoting countless hours and resources chairman of the board. Family Support Center and the Virginia to the association. Blue Ridge started with 10 employees Veterans Services Foundation. He also and five brands. Today, the distribu- is the former president of the Virginia torship employs 435 individuals and Beer Wholesalers Association. services more than 4,000 retail custom- According to Archer, his family feels ers over a 49-county, 17-city territory strongly that beer distributors must con- with more than 200 brands of beer. Blue tinue to support those communities in Ridge distributes nearly 7 million cases which they do business and that have of beer annually and more than 8.5 mil- made it possible for their businesses to lion total beverage cases. grow and thrive. Archer recognizes the advantages He lives in Salem, Virginia, with that working with his family provide his wife, Sandra, and is a member of not only his business but also the com- the First United Methodist Church. munity. “The one major positive impact They have three children - Michelle A. of the family business model is our abil- Sykes, Lori A. Raible and Jill A. Perez Blue Ridge Beverage Employees Surprise ity to become totally engaged in our – and six grandchildren. Archer With a Contribution to the NBWA communities in both charitable and PAC – From 140 First-Time Participants political perspectives,” he has said. NBWA Recognizes Winner of Third Annual Share Your Story Contest Highlighting Beer Distribution Employees Giglio Distributing Employee Wins Free Trip to NBWA’s 78th Annual Convention and Trade Show

BWA’s Third Annual Share Your Enduring Freedom, Wright took NStory contest invited beer distribu- an entry-level position at Giglio tion employees who have never attended Distributing as a route salesman. After the NBWA Annual Convention and two years, Wright was promoted to a Trade Show to submit a written entry logistics management role. explaining why they love working in the “I never thought that I, as a high beer distribution industry. school graduate without a specialized NBWA con- skill set, would have been able to soar gratulates Bryan entry shared a deep pride for working so high … I never expected to have Wright of Giglio in the industry, and it’s the passion of been given the opportunity at success Distributing in the men and women in beer markets that has been afforded to me, especially Beaumont, Texas, across the country that make this indus- while getting to do so in an environ- as the winner of try what it is today.” ment that is closer to being with family this year’s contest. “Bryan Wright is not only a standout rather than co-workers,” Wright wrote “ W e w e r e beer distribution employee, but he also in his essay. overwhelmed served our country honorably overseas Wright compared working at Giglio with compelling with the U.S. Army,” Spicer added. “He Distributing to his time of service in and passionate demonstrates every day how military the Army. stories from a wide range of beer dis- training can serve as a solid founda- “You are surrounded by the same tribution employees from across the tion for work in the beer distribution group of people day in and day out, country,” said NBWA Senior Vice industry.” dealing with the same issues as you, President, Communications and Public After returning home from serving and working towards the same common Affairs Rebecca Spicer. “Every single in the U.S. Army during Operation goal,” wrote Wright. “The camaraderie and sense of brotherhood I get working day in and day out with these people is Download the NBWA Convention App! something I haven’t experienced since my days in the military … The beer business is truly a unique industry that • Personalize your schedule of I am proud to be a part of. I could not events and seminars imagine my life any place else.” • View session and speaker information According to a recent NBWA survey, • Connect with fellow attendees 91 percent of America’s beer distribu- • View Trade Show exhibitors and tors employ veterans or current service maps members. NBWA’s Share Your Story Contest To download, enter was launched in 2013 to highlight http://m.core-apps.com/nbwa2015 some of the 130,000 men and women in your mobile browser, or search who make up the beer distribution “NBWA” in your phone’s app store. industry, from truck drivers, inventory Or, just scan the QR code in the specialists and graphic artists to sales image to the right! representatives, warehouse workers and receptionists. Next Generation Gathers at NBWA’s Third Annual Success in Leadership Conference

early 125 “next generation” beer dis- take to get their most valuable resource Ntributors attended NBWA’s Third back. Annual Next Generation Success in Dr. Kent Rhodes, a consultant with Leadership Conference held August 3 – 4 the Family Business Consulting Group in Denver, Colorado. The NBWA Next and core faculty member at Pepperdine Generation Group brings together future University, spoke about the importance leaders in the beer distribution industry of continuity planning in family busi- and helps members learn more about the ness. He also taught attendees how beer business, get more involved with families can better manage conflict on the association and network with other a day-to-day basis. that “distributors face emerging risks distributors from all areas of the country Matt Dahlstrom, the founder of related to cyber liability, wage and hour representing all brands. LearnBeer.com and co-founder of practices and product recall.” Next Generation Group Chairman In:Trench Consulting Group, led two In addition to presentations led by Adam Vitale explained the value he workshops – one focused on developing NBWA senior staff that covered advo- finds in the educational programming a targeted 10-year plan and a second cacy and communications programs, offered at the annual conference. focused on leadership. Dahlstrom NBWA Chief Economist Lester Jones “Not only have I learned a tremen- emphasized understanding employee led a panel discussion on the diverse eco- dous amount in how to run a business needs: stability, trust, compassion and nomic and demographic trends shaping and prepare for the future, but I have hope. He told new leaders to define the beer industry. Ryland Bertucci of also established strong personal rela- expectations, set goals, over-communi- F.E.B. Distributing Co., Robbie Maletis tionships with young beer distributors cate and score an early win. Jr. of Maletis Beverage, Joseph Schilleci from across the country, representing Nickolas Hammelman of North­ of Supreme Beverage Company and all brands, serving all types of commu- western Mutual led a discussion on Sarah Schwab of Matesich Distributing nities – urban and rural, and operating risk management strategies and tools Co. explained the pros and cons of eco- businesses large and small,” Vitale said. centered on the retention of key talent, nomic and demographic forces shaping NBWA President & CEO Craig along with assessing the impact to the and changing their markets. Purser said, “Under Adam’s leadership, business if something were to happen Conference attendees also enjoyed an this group has blossomed and created to them. evening of cold beer, games and conver- an entire community of future leaders Greg Ellis and Matt Ellis of PDC sation at the Tavern Downtown, one of in the beer distribution industry.” led two operational sessions on ware- Denver’s many rooftop bars. Curt Steinhorst of the Center for house management. Some of the topics For more information or to join the Generational Kinetics returned by covered included extending the effective Next Generation Group, please con- popular demand as the conference’s life and performance of existing facili- tact NBWA Coordinator, Member keynote speaker. He spoke about how ties and assets; tips for hourly employee Programs and Meetings Maggie living in the digital age also can mean retention and recruiting through pay for Moreland at [email protected]. living in the age of distraction, espe- performance systems; and how to effec- cially in today’s tively reduce sales and delivery costs. workforce. Lance Abbott of BevCap He shared Manage­ment, LLC led a session on strategies for understanding the insurance needed to attention-man- protect a distributorship. The session agement, as covered key insurance terms, defini- well as steps tions and trends as well as types of managers and insurance and coverage distributors employees can should be considering. Abbott noted NBWA Advocates for Distributors on Key Labor Issues By: Laurie Knight NBWA Executive Vice President, Government Affairs

ince Congress returned to the The DOL allowed a very brief win- their concerns regarding the proposed Snation’s capital following its sum- dow for interested parties to analyze rule and also have submitted comments mer recess, there has been renewed and provide feedback regarding the pro- to the DOL. Further congressional attention to recent activity in the reg- posed rule. On September 3, NBWA activity is expected. ulatory arena. On behalf of those in submitted comments establishing the NBWA also is reviewing the NLRB the beer distribution quality jobs provided in the beer distri- ruling issued on August 27 that expands industry, NBWA bution industry and expressing concerns the definition of a joint employer. Under has been focused that the proposed change would under- the ruling, business owners, defined as on actions taken mine industry growth by creating a joint employers, would be responsible by the Department one-size-fits-all application of the rule for the labor practices of their subcon- of Labor (DOL) as and failing to take into consideration tractors. Sen. Alexander and Rep. Kline well as the National the seasonal nature of the industry and introduced legislation on September 9 Labor Relations the varied economic and workforce real- that would roll back the NLRB decision Board (NLRB). ities across the nation. and return the standard to one where In July, the DOL issued its proposed Nearly 250,000 comments were filed companies would only be considered changes to the regulations specifying in response to the proposed overtime employers if they have direct and imme- who is eligible for overtime compensa- rule. It will take several months for the diate control over workers. tion. The proposed rule seeks to raise the DOL to review the comments and con- Regardless of whether or not minimum annual salary threshold for sider possible changes. The final rule is Congress will be able to tackle labor overtime pay from $23,660 to $50,440 expected to be published in 2016. issues this fall, rest assured that NBWA annually. This regulation has been met On Capitol Hill, House Education will be engaged on these important with criticism on several fronts and by a and Workforce Committee Chairman issues and advocating for your business wide range of advocates in the business John Kline (MN) and Senate HELP interests in , D.C. community. Committee Chairman Lamar Alexander (TN) have both expressed

Tune in to NBWA-TV! NBWA’s own exclusive news team returns to the Annual Convention and Trade Show! While in your room at Caesars Palace, watch NBWA-TV newscasts featuring stories on distribu- tors and your association. NBWA-TV reporters will be scouting the convention and the floor of the Trade Show covering all of the excitement. If you see the team, stop and share your convention experience – maybe YOU will be the next NBWA-TV star! Beer Distributors Host Members of Congress for Warehouse Tours

uring the summer, members of Congress depart Washington, D.C., to spend time in their congressional districts, a Dtradition known as “August Recess.” During this time, NBWA beer distributor members from across the country invited their elected officials to participate in tours of their local beer distribution warehouses. NBWA distributor members hosted more than 40 warehouse tours during the August recess and have completed more than 100 tours so far this year. Some of these visits are highlighted below. Choice Brands Rep. Julia of Ohio LLC in Brownley tou red Mingo Junction, Allied Beverages in Ohio, hosted Rep. Sylmar, California, and Bill Johnson for had the opportunity to a constructive meet several employ- visit. While at ees, all of whom live the warehouse, in her district. As this the congressman was her first warehouse met a variety visit, Allied Beverage of employees. leadership provided a general overview of the company and Following the tour, Rep. Johnson rode along with a company the value of the three-tier distribution system. sales representative to see firsthand the work that goes into selling and merchandising at three different retail carry-outs. Senator Kelly Ayotte visited Great Rep. Dave State Beverages Loebsack had in Hooksett, New the opportunity Hampshire. On the to stop by 7G tour, she had the oppor- Distributing in tunity to discuss the Davenport, Iowa. regulatory, economic On the tour, he and commercial value heard from 7G beer distributors provide in the state. Job creation also was a leadership about topic of conversation, along with the senator’s support for the issues ranging Small Business Tax Certainty and Growth Act and the Craft from the pro- Beverage Modernization and Tax Reform Act. posed overtime regulations to the STOP Underage Drinking Reauthorization Act. With this record number of August visits, members of Congress had more opportunities than ever before to learn Turner Beverage about the important role that independent beer distributors Co., Inc. in Huntsville, play in the state-based regulatory system for alcohol. Alabama, hosted Rep. Mo Brooks for his first visit to a beer dis- After you host senators and rep- tribution warehouse. resentatives for a warehouse tour, Turner Beverage Tip! remember to engage! Send them a employees did a great note, and keep the conversation going on social media. Tag them on Facebook job hitting upon issues and Twitter to thank them for their time. of importance to beer distributors, including beer excise tax legislation and trans- portation policy. The 2015 Beer Year: Economics and Demographics Bringing Different Beers, to Different People, in Different Places

By: Lester Jones NBWA Chief Economist

he U.S. economy continues to grow Tinto the fourth quarter of 2015 with many positive signs pointing to a strong year end for the economy and potential gains for the beer industry as well. Yes, we have seen setbacks, including bad weather, global uncer- tainty and significant market adjustments along the way. However, the beer industry is driven by a growing population, an expanding economy and innovation that keeps beer con- sumers coming back to America’s stores, restaurants and bars. Demographics and Per Capita Consumption The demographic trends impacting the beer market and corresponding per capita consumption are relatively predict- Today’s beer market can be summed up as different people, able in a mature industry. The country is getting older on drinking different beers, in different places. Industry volumes average and there is no turning the tide on the graying of have seen a significant shift into high-end craft, imports and America in the short run. The share of the total population FMB brands as economics and demographics have changed over age 21 has risen from 70 percent in 2000 to 72.9 percent the marketplace. The demand side of the market, driven pri- in 2014. A continuation of the trend suggests the legal drink- marily by changing demographics, suggests that total U.S. ing age (LDA) population ratio will grow to 73.2 percent per capita consumption will continue to decline slightly in in 2015. With almost 80 percent of the millennial gener- 2015. The total 2015 LDA population will grow by 1.1 per- ation now of legal drinking age, the LDA population ratio cent, to approximately 234.9 million people. A per capita is expected to continue to rise with no hint of a millennial consumption model for the industry suggests 2015 will end generation echo boom on the horizon to change this trend. the year at 27.4 gallons per person (based on TTB domestic tax paid and U.S. Department of Commerce imported beer volumes). This per capita model predicts a 0.5 percent increase in volumes with the industry delivering 2.86 billion cases of malt beverages (excluding cider) in 2015. Employment The general economy continues to grow with each month. As of August 2015, the economy has added 1.6 million jobs in 2015, for a total of 3.9 million new jobs since the pre-re- cession peak of 2008. The job market has indeed recovered; however, not in the way many have expected. The employ- ment growth rate leaders – categorized as states that have year-over-year gains of more than 3 percent – include Utah, Oregon, Nevada, Florida, Washington, California and South Carolina. These states alone have added more than 1 million jobs since last year and are performing better than average new economy is changing the types of beer they prefer and places they choose to buy beer as well. Once again, we see the evolution of the beer market as different people, drinking different beers, in different places. More than five years after the official end of the Great Recession, we see a new and exciting beer market emerging. Successful independent beer distributors will be on the fore- front of their local market changes and will be ready to deliver the right beer, to the right places for the right consumers.

Participate in the NBWA Beer Purchasers’ Index

Launched at NBWA’s 77th when it comes to beer sales. However, there are still many Annual Convention, the states that have not posted significant job gains and continue NBWA Beer Purchasers’ to perform below the national average. Index (BPI) is a regular The recovery in jobs has begun to push wages higher. Total monthly statistical release wage growth through the second quarter of 2015 is esti- giving distributors a mated at 2 percent on a 12-month (not seasonally adjusted) timely and reliable indica- tor of industry beer purchasing basis. However, it is difficult to determine the true impact activity. Similar to the widely recognized Purchasing of inflation on real wage growth. With falling energy prices, Managers’ Index, the BPI is a net rising index giving the Consumer Price Index (CPI) for all goods and services is NBWA members the first and only advance notice roughly flat (0.2 percent) over the past 12 months. But, after of expectations for increasing or decreasing sales removing food and energy from the CPI, the adjusted infla- by beer industry segment. tion rate rises to 1.8 percent and roughly matches reported The index is a survey-based composite diffusion wage increases. How much better off consumers are in 2015 index where readings above 50 indicate expanding compared to previous years is still debatable. purchasing activity and readings below 50 indicate There is no doubt our economy and our industry is chang- contracting purchases. ing every day. The basic structure of U.S employment has The BPI is an opt-in survey. The October survey is currently in the field. If you would like your distrib- shifted since the Great Recession. The majority of job gains utorship to be part of these forward-looking market we have seen are in service providing industries. Since 2010, insights, please email [email protected] with your the service sector has contributed 85 percent of job growth company name and the primary purchaser’s name for the economy, and this translates into significant change and email address or visit www.nbwa.org/bpi. for beer distributors. Where people live and work in this Independent Beer Distributors Engage With Industry Writers at 2015 Beer Bloggers and Writers Conference

he National Beer Wholesalers retail accounts to help craft beer TAssociation served as a spon- succeed. sor for the 2015 Beer Bloggers When asked what beer blog- and Writers Conference, held gers should know before writing July 17-19 in Asheville, North about the distribution tier, the Carolina. The sixth annual con- panelists highlighted the strong ference was an opportunity for relationships they have with their beer bloggers, beer writers, indus- brewery partners and how they try bloggers and other beer and truly care about the fate of their social media professionals from brands. across the country to network, “I can’t sleep at night if beer learn, taste and share. goes out of code or we lose a NBWA Communications tap handle in a key account,” Director Kathleen Joyce and Editorial Abdoney said. “Our brewery partners Assistant Sara Neiman attended the are part of our family as a company.” sold-out conference to interact with The distributors also emphasized that more than 160 beer writers. their companies are independent and “The Beer Bloggers and Writers started off small just like many of the Conference is a great opportunity for craft breweries they represent. those who write about various aspects “We are like those small craft brew- of the beer industry to meet face-to-face eries,” Johnson said, noting that he with industry members and other beer started his company with just three lovers with whom they regularly com- people. municate online,” said Joyce. Beer distributor Craft Central, a At the conference, Joyce moder- dedicated craft beer division of Caffey ated a panel, “Building Craft Beer Distributing and Carolina Premium Brands: A Talk With Award-Winning Beverage, sponsored a lunch at the Distributors,” emphasizing independent conference and demonstrated how the distributors’ essential role in craft beer’s resonate with consumers in today’s com- company produces videos and uses the growth. She described how independent petitive marketplace. power of social media to promote their distribution allows craft brewers access The panel discussed creative promo- portfolio of craft beers. to the same trucks and store shelves as tions and techniques for ensuring that much larger brands and encouraged individual brands succeed, the trends the beer bloggers to get to know their that are resonating with today’s retailers local beer distributors, who offer market – including the thirst for local beer – expertise and provide a unique industry and the challenge of maintaining brand perspective. equity and quality in a rapidly expand- Matt Abdoney from J.J. Taylor ing market. Distributing Florida in Tampa, Florida; “We are built to take a brand to mar- Robbie Maletis from Maletis Beverage ket,” Maletis said, explaining how an in Portland, Oregon; and Brad Johnston independent distribution system has from Tryon Distributing in Charlotte, helped grow the craft beer business North Carolina; shared their perspec- to what it is today. He noted that his tives on what it takes to build and company has the logistics and the rela- grow successful craft beer brands that tionships with thousands of different Cheers to Distributor Business Anniversaries!

Maletis Beverage Gulf Distributing 80 80 80 Company of Years Years was established Years in 1935 by Chris Mobile, LLC was Maletis Sr. Today, founded in 1935. the fourth generation Originally named Jax family-owned and operated Columbia Distributing, located Distributing, the company was company employs more than 350 in Portland, Oregon, was founded purchased by Freida G. Maisel in people and distributes more than 40 in 1935 by Chris Maletis, Sr. Today, 1973 and renamed. beer brands in the greater Portland Columbia Distributing represents One of the oldest and Southwest Washington area. more than 100 beer and cider suppli- beverage distribu- Since 2000, Rob Maletis has contin- ers in Oregon and Washington. Its tors in the Southeast, ued to grow Maletis Beverage while nearly 3,000 employees service more Gulf Distributing of also keeping the company true to the than 20,000 retail customers covering Mobile began with principles established by his grandfa- 135,000 square miles in Oregon and just 20 employees ther and father. Washington. Columbia Distributing and seven trucks. The was named Market Watch magazine’s company has maintained its status “2015 Beer Wholesaler of the Year” as a family-owned business and is for building the ’s currently led by Chairman and CEO craft beer market while maintaining Elliot B. Maisel. Gulf Distributing focus on its traditional supplier and of Mobile is a subsidiary of Gulf retailer partners. Distributing Holdings, LLC, which is comprised of four distributors and a partnership with Keg 1 in Central Texas. Gulf Distributing Holdings employs 720 people, represents more Fechtel than 75 suppliers and has distributor 75 Beverage 50 Years w a s Years operations in Mississippi, Alabama founded in 1940 by and Florida. Ben Fechtel in Jefferson City, Doll Distributing, located in Missouri, and is Council Bluffs, Iowa, was founded 25 currently owned Years by Merlin and Edith Doll in 1965. and operated by The Doll family’s second generation the third and later purchased the company from fourth genera- their parents and have expanded the tion of the Fechtel Craig Stein Beverage was business from distribution in three family. Beginning with only nine founded in 1990 by Craig Stein in counties to 11. Today the Doll family employees and supplying one beer Vancouver, Washington. Starting employs 300 people between their brand, Fechtel Beverage now employs with only 11 employees, the company four warehouses and distributes 65 people and sells more than 259 now employs approximately 400 products to more than 40 counties, brands from 30 suppliers. To cele- people and has grown to four loca- th serving more than 3,500 different brate Fechtel’s 75 anniversary, tions in Washington and Idaho. To retail accounts in Iowa. Rep. David the company held its first “Fechtel celebrate the anniversary, each loca- Young recognized the company’s Beverage Family Reunion” and tion held an employee BBQ , and 50th anniversary with remarks in the invited their current and past employ- the company recognized seven of Congressional Record. He also paid ees, along with new and old brew- the original 11 employees contin- a visit to the company to tour the ery representatives. Fechtel hopes to uously employed at its Vancouver, warehouse and meet with employees. make the reunion an annual function. Washington, location. Center for Alcohol Policy Hosts Eighth Annual Alcohol Law and Policy Conference

he Center for Alcohol Policy hosted Attorney Michael Madigan said, Tits Eighth Annual Alcohol Law and “The 10 years since theGranholm deci- Policy Conference September 9 – 11 sion have brought further support for in Chicago, Illinois. The annual event the ‘three-tier system is unquestionably brings together a wide range of alcohol legitimate’ reasoning of the Supreme policy experts – including attorneys, Court.” current and former alcohol regulators, Another panel examined the history, legislators, law enforcement, public successes and weaknesses of the Federal the state standard for liquor education health advocates and other experts – to Alcohol Administration Act, which was and server training while involving all discuss and debate current alcohol laws passed 80 years ago by Congress to gov- community stakeholders in its initia- and challenges. ern the federal regulation of the new tives. Since the unit was created by the alcohol industry following Prohibition’s Montana Department of Revenue in repeal. Robert Tobiassen, former gen- 2008, it has developed a broad network eral counsel for the U.S. Alcohol and of community partners, brought in more Tobacco Tax and Trade Bureau, noted than 240 active volunteer trainers and that the law is 80 years old but has expanded and updated the state train- much regulatory flexibility. ing program, ‘Let’s Control It: Alcohol A panel of state alcohol regulators Responsibility Matters.’” shared what they have learned from their The unit has worked with a variety of position and what others involved in the partners to help launch initiatives such South Dakota Attorney General alcohol industry should consider as they as the Montana Community Change and National Association of Attorneys embark on their duties to regulate the Project, DUI task forces across the state, General President Marty Jackley deliv- alcohol industry. Roger Johnson, former the Comprehensive Highway Safety ered a keynote address on the role of assistant chief for the Alcohol & Tobacco Plan Alcohol Strategy Implementation state attorneys general in alcohol policy Enforcement Division team and the Interagency Coordinating debates and the importance of policies of the Wisconsin Council on State Prevention that safeguard against the abuse of alco- D e p a r t m e n t o f Programs. Earlier this year, the unit hol. Attorney General Jackley detailed Revenue, also shared hosted the 2015 Alcohol Education his work to expand South Dakota’s insights from his Summit, which brought nearly 200 24/7 Alcohol Sobriety and Monitoring new guide, “Alcohol alcohol stakeholders to the state capital Program across the state and nation, Beverage Control: The for two days of education, dialogue and which has proven successful in reducing Basics for New State sharing of best practices. the likelihood for alcohol re-offenses. Alcohol Regulators.” Other topics discussed during the A panel of attorneys examined the During the conference, the Center conference included lessons learned 21st Amendment a decade after the announced the Montana Department of by local governments with regard to Granholm v. Heald decision in 2005, Revenue’s Liquor Education Unit as the granting new liquor licenses, inform- when the U.S. Supreme Court held that recipient of the Third Annual Leadership ing local stakeholders and the impact states many not directly favor in-state in Alcohol Regulation Award, which rec- on law enforcement; state legislators’ alcohol producers while denying the ognizes the work of alcohol regulators efforts to weigh competing state inter- same benefit to out-of-state producers who oversee the alcohol industry and pro- ests related to law enforcement, public as this violates the dormant Commerce mote public safety. health, orderly markets, taxation and Clause of the U.S. Constitution. They Jerry Oliver, a member of the jobs; how to measure the efficacy of U.S. reviewed the numerous court cases that Center’s Advisory Council and for- alcohol control policies; and an update have clarified the law since Granholm v. mer Arizona alcohol regulator, said, on drunk and drugged driving inci- Heald and upheld states’ right to regu- “One of the most impressive facets of dence rates and the future of technology late alcohol under the 21st Amendment. the Montana Liquor Education Unit to prevent cars from being operated by is its tireless dedication to improving drunk drivers. NBWA Launches Brewer Partner of the Year Award

BWA will present a new award and arm with their distributor partners Nat this year’s convention - to bring beer to market. And new the Brewer Partner of the Year partnerships are forming every day Award. The inaugural award – 94 percent of independent beer will recognize the brewer who distributors report that they have does the best job in the mar- added at least one new brewer to ketplace producing great beer; their portfolio in the past year.” building strong partnerships; “We are excited to recognize providing valuable educa- the innovative brewers who do tion; and offering support to the best job working with their their distributor customers distributor partners to build in order to bring their brands and engage con- beers to market. sumers,” Purser said. NBWA President In addition to the and CEO Craig Purser Brewer Partner of the Year said, “With more than Award, two runner-up 3,700 brewers in opera- awards, the Brewer Partner tion today, independent distributors are fortunate Sales Execution Award and the Brewer Partner to work with many different brewers who make great beer, Marketing Innovation Award also will be presented. provide valuable sales and marketing assistance and work arm Beer Distributors Utilize NBWA Safety Training Videos

n April, NBWA launched a new resources,” said NBWA CFO Kimberly distractions drivers face and how Imembership resource created exclu- McKinnish. to avoid them through planning sively for beer distributors – safety To select video topics, NBWA sought and knowing how to handle training videos that feature real-life sce- the advice of insurance program part- everyday driving hazards on the narios for employees in NBWA member ner BevCap Management and industry job. Viewers are introduced to warehouses. experts to determine areas where beer potentially dangerous situations The videos are housed on the NBWA distributors experience the highest and given information to mini- website as part of a safety training video insurance claim rates. mize the risk. Good judgment, library. They are available to distrib- NBWA’s first safety training videos alertness and always obeying traf- utor members on-demand 24/7 and focus on two areas where frequent and fic laws are stressed as the basics accompanied by a downloadable quiz. expensive insurance claims plague the of safe driving. Employers can use the quizzes to verify association’s distributor members: that an employee watched the video and Since their launch, distributors across to document the training for human • Safe Postures and Ergonomics: the county have reported using the vid- resources. Back injuries caused by improper eos to train new and existing employees. “Because these videos are indus- lifting are the most common dis- Sandy Wright Kibby of Capitol try-specific and reflect what beer abling injuries in the workplace. Wright Distributing LLC in Texas said, distribution employees actually do on a Proper ergonomics can prevent “I am so excited that NBWA is doing daily basis, they are more engaging and most issues. This video teaches this service for the beer industry. We impactful than other available training safe postures and proper lifting really do need a lot of help in this area techniques for distributor employ- of safe product handling. It is so much ees handling cases and more relevant to see actual beer truck kegs of beer. Viewers drivers.” will learn basic stretches; “This needs to be part of every new step-by-step lifting employee’s safety training and orienta- techniques; hand truck tion,” she added. tips; and the best way to Suzie Rudolph, the human resource enter and exit a truck. manager for Central Coast Distributing in California, also has made use of the • Distracted Driving: videos. A Choice You Make: “We showed both videos at our com- Nearly 6,000 peo- pany-wide safety meeting,” Rudolph ple die annually in said. “Our employees were very crashes involving a dis- responsive and enthusiastic to both tracted driver and more the information given and the fact it than half a million are was real beer employees. Both videos injured. This video cov- are great training tools! Having both ers a host of possible audio and visual training methods is very beneficial.” Additional training videos will be offered to meet mem- bers’ other priority needs and respond to changing industry conditions. Member Take Advantage of Valuable Services NBWA Member Services! NEW Membership BWA continues to add new Benefit! Power Purchasers International Saving Nresources to better serve its mem- Solutions Program, which assists beer bers. Take advantage of the programs distributors with identifying and imple- and services that your association pro- menting business options that reduce vides to help grow your business and energy and utility costs. save you money! Go-to-Guide for Beer Distributors Distributor Productivity Report Looking for products and services The Distributor Productivity Report Webinars t o m e e t provides the most comprehensive beer NBWA launched a new offering this your busi- distribution industry data available. This year with the addition of free educa- ness needs? industry-wide research effort tional webinars for distributors. Visit NBWA serves as an actionable the membership section of the NBWA helps beer tool for companies to website to access recordings of webinars distributors evaluate their oper- on OSHA compliance challenges and cut through ating results in order reviewing distributor handbooks, rules the clutter of to pinpoint strengths, and disciplinary processes. Distributor traditional search engine results with weaknesses and improvement oppor- members also can access NBWA the Go-to-Guide for Beer Distributors. tunities. It includes valuable data on Communicators Group webinars on This online buyer’s guide offers an -effi sales, marketing the Media Toolkit for Beer Distributors cient resource for beer distributors with and operational membership page. targeted searches using either a keyword d e t a i l s t h at or a directory search by product category. enable dis- Insurance Programs tributors to BevCap Management LLC offers Who’s Who in Beer Distributing benchmark their property and casualty insurance with NBWA pub- company key coverage enhancements designed lishes its official t o i n d u s t r y specifically for NBWA distributor membership standards. members, including limited product directory annu- recall coverage, employment practices ally, providing Compensation and Benefits Study liability insurance, liquor liability and the industry with The Compensation and Benefits Study hired auto physical damage. Limited comprehensive allows NBWA members to easily benefit medi- information compare their cal plans also about distribu- compensation are avail- torships across levels and bene- able. NBWA the United States, NBWA associate fits policies with members have members, state associations and more. similar distribu- access to BevCap Health, an opportu- The directory lists more than 3,000 tors. Published nity for employers to aggregate, share beer distributors and suppliers to the every other best practices, mitigate risk and reduce industry. year, the study’s the long-term cost of health care ben- 2014 edition efits through a self-funded health plan To learn more about NBWA mem- is available for with group risk sharing. bership services and programs, or purchase. Order to order any of the above studies your copy today! Energy Buyer’s or reports, please contact NBWA Program Coordinator, Member Programs NBWA mem- ENERGY and Meetings Maggie Moreland at BUYER’S bers have access PROGRAM [email protected]. to the Affiliated Mark your calendars for NBWA’s 2016 Legislative Conference in Washington, D.C., April 10-13, 2016.

Be a part of NBWA’s 79th Annual Convention in Chicago, Illinois, September 25-28, 2016!

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