Voice of the brewers

Modern Brewery Age, Jan 26, 2004

There have been some unusual rumblings at the Beer Institute of late. In December, the brewery trade group announced it is "reexamining its statistical function;' and Matt Hein, vice president for statistical information, was basically let go (although he remains on retainer as a consultant). Joe Stanton, v.p. government relations for the last three years, has announced that he'll be leaving too.

Budgetary strictures have hobbled the Institute for years, and one wonders if the big brewers are once again tailing to maintain their trade association. The large U.S. brewers have a history of self-defeating behavior when it comes to operating their trade groups. The big brewers shot themselves in the collective foot when they disbanded the United States Brewers Association in the mid-1980s, and it would more than a pity if history were to repeat itself.

The top three brewers make the bulk of the beer sold in the U.S. By inference, the trade group that represents the major producers should be the brewing industry's primary trade organ. And so it is. The Institute is headed by the able Jeff Becker, who has often served as the industry's foil to vocal opponents like CSPI and DISCUS. Under his leadership, the Institute finally has the potential to develop some momentum.

There are two other brewers trade groups, of course, the BAA and the AOB. The Brewers' Association of America is no longer simply a social outlet for frustrated small brewers. It has become an agile small association, despite limited resources. Daniel Bradford has brought new focus to the BAA agenda, and has reached out to other groups to a greater extent than in the past.

There is also the Association of Brewers, the microbrewer's association located in Boulder, CO. But the AOB is not a trade association. Every time we used to call it a trade association in print, Dave Edgar, the former director of the AOB'S Institute of Brewing Studies, would write us a note. He would tell us that the AOB is an educational association, and not a trade association. Point taken.

So that still leaves the brewing industry with two associations, the Beer Institute and the BAA. On its face, this is an odd state of affairs. Do vintners or distillers have multiple associations?

For some reason, brewers cannot seem to rise above competitive concerns to unite effectively. This was true when they shut down the USBA, and it is true today. Rather than put their full weight behind the Institute, big brewers have fielded their own lobbyists, and pursued their own agendas. The result has been clear. Disunited brewers have failed to wield the influence that is their due.

In contrast, the beer wholesalers have managed to put competitive concerns aside and field one united trade association. The result: The National Beer Wholesalers Association (NBWA) has become one of the most influential trade groups in D.C.

Legislators and neo-prohibitionists probably wonder at the power of NBWA. Perhaps they ask themselves, "If the wholesalers are this powerful, what are we going to do when the brewers get on our case?" But they don't have to worry, because the big brewers have resisted building the Institute into that kind of powerful trade association.

Sure, it's more complicated now. Miller is owned by South African Breweries, and it's always possible that a foreign-owned brewer might have an agenda that diverges from those of U.S. brewers. But the world has changed, and globalization cuts both ways.

The ideal would be one trade association. A group with the heft of the Institute, and the collegiality and agility of the BAA. Unfortunately, it will never happen. The small brewers long ago realized that they cannot subordinate themselves to the big brewers, who have a distressing habit of throwing their weight around. Unless some sort of democratic voting structure was instituted, large and small brewers would never sit comfortably at the same table.

The best answer is to retain and strengthen the Beer Institute, and develop a more structured cooperative arrangement with the BAA. The industry is fortunate to have Jeff Becker working for them in Washington, and they should give him the resources he needs to do the job.

Brewers have more in common than they have separating them. It is time for a stronger unified voice in Washington.