WSWA Fights for Wholesalers and the Broader Industry

Wine & Spirits Wholesalers of America (WSWA) recently appointed Cutter Smith, president of Eder Bros., Inc., as the association’s new Chairman. Smith succeeds Dina Opici, president of Opici Family Distributing, who has completed her term as Chairwoman.

Smith, a leader in family-owned Connecticut-based wholesale business, takes the helm as WSWA continues to navigate evolving consumer preferences, an increasingly complex regulatory environment and significant economic pressures facing the beverage alcohol marketplace.

We spoke with Francis Creighton, WSWA president and CEO, about Smith’s appointment and his future goals for the association.

BW: Why choose Cutter Smith as WSWA’s new Chairman?

Francis Creighton: Cutter is a long-time member of WSWA’s board and has been on our executive committee for several years. He is a great strategic thinker and has been involved with every critical WSWA issue for several years. Given the dynamic nature of our industry, having a chairman who is deeply involved in every aspect of the business is very helping in guiding the work of the association. He’s great to work with, and fights for wholesalers and the entire beverage alcohol market every day.

BW: What projects or initiatives do you plan on working on with the new Chairman in the coming year?

FC: As Cutter has said in the past, this market demands resourcefulness and nimbleness. WSWA is committed to proactively supporting our members by addressing market challenges and identifying growth opportunities. Key initiatives currently include fighting tariffs that unfairly burden our member’s businesses and hurt consumers, and ensuring a strong three-tier system that promotes consumer choice, public safety and economic vitality.

WSWA has implemented a three-year strategic plan aimed at fostering a thriving marketplace that values our members and the three-tier system. We advocate for the critical role of wholesalers and empower them to succeed through targeted actions, including our advocacy efforts, engaging in member events such as Access LIVE, our convention and trade show in Las Vegas in February, and providing the best data available in the market through SipSource.

Next year, our main points of focus will be making sure that all three tiers of our industry see real value in Access LIVE, advancing our advocacy goals and continuing to invest in the success of SipSource.

In a rapidly evolving market, remaining static is not an option. WSWA will continue to prioritize agility, innovation, and collaboration to drive success across the three-tiers.

BW: What is WSWA’s current top legislative priority at the federal and state level, and how is the organization mobilizing its members to achieve that goal?

FC: First and foremost, WSWA will continue fighting to protect the vibrant three-tier system that drives innovation, protects public health and safety, and ensures proper tax compliance.We will continue to work with policymakers to highlight the negative impact of tariffs, which hurt consumers and put pressure on an industry that employs so many people across the country.  

We also want to ensure that intoxicating hemp beverage products, which are increasingly available in states around the country, are properly regulated. We cannot have these products in the market without effective regulations. We believe the beverage alcohol regulatory framework is best suited for these beverage products. The beverage alcohol industry knows how to keep our products out of the hands of children. We know how to address public health and public safety. We know how to make sure the proper taxes are paid. And we know, uniquely, that prohibition doesn’t work. We must regulate these products; it’s just common sense.

BW: With recent reports of a volume decline in the wine and spirits market, how is WSWA helping wholesalers adjust their business strategies and what specific categories (e.g., RTDs, No/Low-Alcohol) are presenting the biggest growth opportunities?

FC: WSWA helps wholesalers learn the hot, new, now market trends through Access LIVE, the industry’s premier trade show. We also provide forums for our wholesaler members to share insights on what’s working in their markets and how consumer trends are changing.

Through our data arm, SipSource, we provide real-world data to show how those consumers are moving real products from the warehouse to the retail outlet. As I said earlier, collaboration in a market like this is critical for company and country-wide- success.

BW: How is the continued consolidation of the wholesale market impacting smaller producers, and what steps is the WSWA taking to ensure a competitive and diverse marketplace for both large and craft brands?

FC: The current market situation is difficult for all three tiers – we see it across the beverage alcohol industry. While WSWA doesn’t get involved in individual brand-wholesaler conversations, we do work to ensure a robust market where different kinds of wholesalers can serve different types of brands. Our association is committed to making sure the market works for every kind of wholesaler, large and small, single state or multiplayer, franchise or open. A vibrant, independent wholesale tier ensures there are opportunities for all brands.

BW: What do you think the future holds for WSWA and the broader industry?

FC: The big conversation I keep hearing in the industry in whether today’s market reflects structural or cyclical change. And increasingly I believe that the issue is cyclical. The consumer sentiment survey shows that consumers’ perspectives on the economy are close to their lowest point in the last ten years.

Regardless of the actual state of the U.S. economy, consumers are nervous, and they don’t feel good about their personal financial circumstances, leading them to cut back on consumption across a variety of products. If we see these consumer sentiment numbers improve, I think you are going to see our market (and the entire hospitality and travel/tourism sector) improve with them.

The post WSWA Fights for Wholesalers and the Broader Industry appeared first on Beverage Information Group.