Panelists at NBWA/Brewers Legislative conference discuss three-tier threats

Modern Brewery Age, April 25, 2005

Craig Purser: The role of the state regulator is at a cross-roads. The whole notion that is behind the arguments is the notion of deregulation. If you get rid of the regulation, you get rid of the regulator, and you get rid of the regulated. This is all related. If you've never had a relationship with your state regulators, invite one over for a cup of coffee. You want them to be doing their job. You want them to be enforcing the rules. This is a transparent system, and we have a lot invested in it, so we need to embrace that system. If you haven't seen your regulator lately, get in front of them, and get on their radar screen. On the national level, we are looking at this, on advancing regulator's causes. In a number of states, there have been funding cutbacks for enforcement. In some states, enforcement is being transferred to the state police. That's not what we want. We want good strong regulators.

Another point. The person you need to reach out to is your attorney general. You have to have a relationship with your attorney general. The state attorney generals are so critical to the process. Get to know your attorney general.

Steve Diamond: Working with non-traditional allies who want regulation is important, as has been discussed. Don't trash the idea of regulation. Don't make Swiss cheese of your tied house rules for short-term advantage. Support your regulators. Make sure they are funded. Make sure they are doing their jobs. It's very important.

Justice Souter said something we should all think about. He said "The 21st Amendment does protect the right of the states to treat alcoholic beverages differently. The question is whether they are doing it."

Craig Purser: Everyone here came to Washington today for a reason. Our opponents in this arena include some of our customers. From a policy standpoint, we are on different sides. Eight years ago, Wal-Mart had a minimal presence on Capital Hill. Today, they have the largest corporate PAC in America, and they have a stable of lobbyists roaming the halls pressing their agenda. And I am certain that they are doing the same thing at the state level. As they watch this litigation unfolds, we have to believe they are spending the resources and making the investment to see what they do next. We have to do the same thing. We all have a stake in this. We have to think in terms of the next ten years. We have to make the investment from a political standpoint and a financial standpoint, and be anticipating what will happen.

Phil Wayt: I would mention that, like never before, we've seen the involvement at the state level and n Washington of Costco and Wal-Mart. They are now on the board of our state bureau of commerce. I've always gone to the state bureau of commerce convention, and there were never retailers there. Now Wal-Mart is there. Their executives are on the panels. At the meeting of the non-control states, Wal-Mart was on the panel. They are out front like never before, and we have to be there to. We have to sit with our regulators, and embrace regulation, because they are aiming to tear it down.