Steve LytleAmerican Beverage Licensees

Las Vegas - June, 2012

NBWA’s VisionNBWA’s Vision

NBWA’s “Why”NBWA’s “Why”

Preserve, protect and grow

our members’ investment

in the

independent beer distribution industry

NBWA’s “What”NBWA’s “What”

Advocate

Educate

Congregate

Communicate

Objectives for 2012Objectives for 2012

Advocate for the state based, three-tier system

Explain and expand the commercial benefit of the independent three-tier system and beer distributors

Reframe the image of beer distributors

Develop public policy that supports “Building Brand Beer”

What’s Important To Our Membership?

Biggest Challenges

Important Allies

What Members Are Saying

“I fear one of the tiers becoming more powerful than the others. Distributors end up getting hurt,

looking as if we do not add value, and get squeezed.”

What Members Are Saying

“I’m worried about the limitation of a state’s right to regulate alcohol and about the breakdown of the three-

tier system.”

What Members Are Saying

“We may be headed for a regulatory system that is similar to the days

prior to Prohibition.”

A Very Different Perspective

COSTCO: "Is (wine) more special than clothing, is it more special than televisions? I don't think so.“

CNBC: "Certainly it's different than toilet paper? Or different than tin foil?“

COSTCO: "Why?"

CNBC: "Because it's personal."

COSTCO: "People can look at it that way. But at the end of the day, it's just a beverage."

Industry Crossroads

Litigation slowing

State and federal deregulation threats

Fewer independent distributors

Loss of distributors’ independence

Beer’s paradox

What is NBWA Doing?

Federal Affairs

State Affairs

Industry Affairs

Federal Affairs

Taxes Alcohol Excise Taxes

Small/Private Business Tax Issues S Corps and Pass-

Through Businesses

Estate Tax LIFO Credits for Natural

Gas Vehicles

Effective Regulation

State-Based Federal Policy

Opposing Preemption

Federal Agency Watching FTC Supporting TTB

State Affairs

Resource & Coordination

Litigation assistance

Deregulation through Ballot box Privatization Modernization

Legislative review

Ideas & coordination for/with State Associations

Independent Distributors

3 tier clarification

Non-discriminatory pricing

Territorial integrity

Industry Affairs

Developing “Three Legged Stool” Storytelling Economic Commercial Social

Developing effective public policies that support and grow beer

Key Take Aways

Alcohol distribution industry is at

crossroads

NBWA is active and engaged in

supporting the effective, state

based three tier system of alcohol

distribution

Steve LytleAmerican Beverage Licensees

Las Vegas - June, 2012