America's Beer Distributors

The National Beer Wholesalers Association (NBWA) represents the more than 2,850 licensed beer distributors with operations in every state and congressional district throughout the United States. America’s beer distributors are local, independent businesses. Distributors are local community, civic and business leaders in their local communities. 

The United States today benefits from a state-based regulatory system for alcohol which was created more than 75 years ago as Prohibition ended. The 21st Amendment granted individual states the primary authority to regulate alcohol within their borders. While the federal government plays a role in alcohol regulation, it is the state-based system that maintains an orderly marketplace and effectively controls the production, distribution and sale of alcohol. This successful model established an independent three-tier system for alcohol distribution consisting of a supplier or producer, a distributor and a retailer.

Unfortunately, the effective state-based regulatory system in the U.S. is under attack. Over the past 10 years, more than 25 states have faced challenges in federal courts to their authority to regulate alcohol and their ability to maintain a licensed system of alcohol controls. States have faced challenges under both the dormant Commerce Clause legal theory and the Sherman Antitrust Act. The inconsistent rulings in these cases demonstrate the judicial confusion about congressional support for state alcohol laws.

Congress must prevent the erosion of the states’ ability to regulate alcohol by clarifying its intent that states have the primary authority to regulate alcohol and reaffirming its commitment to effective state-based regulation which promotes responsible consumption and maintains an orderly market. America’s beer distributors are concerned that these litigation challenges lead to progressive deregulation.

NBWA’s number one legislative priority in the 111^th Congress is supporting state-based regulation of alcohol.  Read about NBWA's support for H.R. 5034 here.

Other legislative issues of importance to NBWA include:

Estate Tax Reform

NBWA encourages Congress to pass permanent estate tax reform legislation.  The uncertainty of the estate tax prevents family businesses from growing, creating jobs and planning for the future of the company and the family.  Legitimate estate planning tools such as Grantor Retained Annuity Trusts (GRATs) and valuation discounts should be maintained to keep a level playing field between public and private companies and to plan for the succession of family operations.

Last-In, First-Out Inventory Accounting Method

NBWA encourages Congress not to repeal the LIFO inventory accounting method for small businesses.  LIFO, established more than 70 years ago, is an effective inventory accounting method used widely by beer distributors. The repeal of LIFO would cost small business jobs and have significant unplanned tax liabilities which could directly affect job growth, business expansion and local communities.

Reauthorization of the STOP Underage Drinking Law In the 109th Congress, NBWA worked hard to pass the Sober Truth on Preventing Underage Drinking Act (“STOP Act”), which was signed into law by President Bush on December 20, 2006. This historic piece of legislation identifies the unique attributes of alcohol and recognizes that individual states have the primary authority to regulate alcohol within their borders.

The STOP Law highlights the health and safety concerns about underage drinking and provides funding for programs and groups to address the problems. The American beer distribution system provides transparency and accountability to ensure that high quality products reach the marketplace safely.

NBWA supports reauthorization of the STOP Underage Drinking Act to help states effectively fight underage drinking.