The U.S. beer industry is responsible for creating more than 2.23 million jobs that paid a combined $103.3 billion in wages and benefits, according to the findings of a joint study commissioned by the Beer Institute and the National Beer Wholesalers Association (NBWA).
“The numbers really show that beer is putting Americans to work,” Beer Institute president and CEO Jim McGreevy told Brewbound.
The study, titled “Beer Serves America,” was conducted by independent economics firm John Dunham & Associates and found that the U.S. beer industry contributed more than $350 billion in economic output, which is equal to 1.9 percent of the U.S. Gross Domestic Product.
“What it does, is it provides kind of a real time snapshot of the industry and its health and its economic contribution,” NBWA president and CEO Craig Purser told Brewbound. “This lets policymakers know that we’re not just an industry that makes Super Bowl commercials. We put food on tables.”
Among the study’s findings:
- Brewers and beer importers directly employ 64,745 American workers.
- Beer distributors directly employ 134,240 American workers.
- Large and mid-sized brewers and beer importers account for about 58 percent of the industry’s jobs.
- Microbreweries account for 27.1 percent of the industry’s workforce.
- Brewpub jobs make up 15.2 percent of the industry’s jobs.
- Brewing industry suppliers — manufacturers of bottles, cans, kegs, cardboard case boxes, brewing equipment and marketing displays — generate about $115.3 billion in economic activity and they employ more than 491,800 workers.
- The top five states for “beer-related” job creation were California (267,576), Texas (165,249), Florida (168,786), New York (130,762) and Illinois (89,692).
- The state of California also led the way with the largest economic impact: $48.2 billion.
“There is a lot to celebrate here,” McGreevy said. “Not just for brewers and distributors, but for anybody who touches the creation and selling of beer.”
The Beer Serves America study also provides the industry a “platform to advocate on,” Purser said.
In recent years, industry members have lobbied Congress to pass the Craft Beverage Modernization and Tax Reform Act (CBMTRA). Despite overwhelming bipartisan support, the bill, which has been introduced into Congress three times, has never passed.
“We are more than sufficiently taxed,” Purser said, adding that, on average, 41 percent of the price of every beer goes to paying federal, state and local taxes.
If passed, CBMTRA would cut the federal excise tax to $3.50 per barrel on the first 60,000 barrels for domestic brewers making fewer than 2 million barrels annually. The bill would also cut the federal excise tax to $16 per barrel on the first 6 million barrels for all other brewers and all beer importers.
The beer industry pays more than $63 billion in business, personal and consumption taxes, the study also found.
John Dunham & Associates collected the data from private companies, Infogroup, the U.S. Bureau of Labor Statistics, the Alcohol Tobacco Tax and Trade Bureau (TTB) and the U.S. Bureau of Economic Analysis.
Read the full press release below.
Beer Institute and NBWA Announce U.S. Beer Industry Contributes $350 Billion to Economy and Creates 2.23 Million Jobs
Beer Serves America Reveals the Beer Industry’s Vast Impact on U.S. Economy and Job Creation Across the Nation
WASHINGTON, D.C. – From brewers and beer importers to beer distributors and retailers, the Beer Institute and the National Beer Wholesalers Association (NBWA) today released Beer Serves America, an economic study that highlights how the U.S. beer industry generates more than 2.23 million jobs, providing $103.3 billion in wages and benefits to American workers and families.
Economic output, job data and tax contributions per state can be found here: http://www.beerservesamerica.org/.
The study, based on government and industry data, estimates the wages provided, the economic contribution generated, the taxes paid and the number of jobs supported by the American beer industry.
“Beer is more than a refreshing adult beverage. The beer industry is vital to the United States, generating nearly 2.23 million jobs and contributing more than $350 billion to the American economy,” said Jim McGreevy, President and CEO of the Beer Institute. “Beer Serves America demonstrates how brewers, beer importers and beer industry suppliers are creating jobs, providing wages and benefits to working Americans and supporting the economy in every state and every congressional district.”
NBWA President & CEO Craig Purser said, “America’s beer distributors are proud to provide nearly 135,000 jobs with solid wages and great benefits to employees at more than 3,000 facilities, located in every state and congressional district across the country. Independent beer distributors generate significant economic contributions in their communities through local business-to-business commerce, investments in local infrastructure and capital assets and tax revenue. Through a wide range of services, distributors work to build beer brands of all kinds – from large, familiar labels to start-up, craft brands and imports from around the world – and to deliver vast consumer choice in the marketplace.”
Key findings from the Beer Serves America report include:
Brewers and beer importers directly employ 64,745 Americans. About 58 percent of brewing jobs are linked to large and mid-sized brewers and beer importers.
Beer distributors directly employ 134,240 Americans.
Overall, the beer industry contributes more than $350 billion in economic output, which is equal to nearly 1.9 percent of the U.S. Gross Domestic Product.
Suppliers to the brewing industry – enterprises that manufacture bottles, cans and kegs, cardboard case boxes, brewing equipment or marketing displays – generate nearly $115.3 billion in economic activity and are responsible for more than 491,800 jobs alone.
The Beer Serves America study was compiled by an independent economics firm John Dunham & Associates. It is the most comprehensive analysis of the industry available, using data collected directly from private companies, Infogroup, the U.S. Bureau of Labor Statistics, the Alcohol Tobacco Tax and Trade Bureau (TTB) and the U.S. Bureau of Economic Analysis.
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The Beer Institute is a national trade association for the American brewing industry, representing both large and small brewers, as well as importers and industry suppliers. First founded in 1862 as the U.S. Brewers Association, the Beer Institute is committed today to the development of sound public policy and to the values of civic duty and personal responsibility: www.BeerInstitute.org. Connect with us @BeerInstitute and on Facebook.
The National Beer Wholesalers Association (NBWA) represents the interests of America’s 3,300 licensed, independent beer distributor operations in every state, congressional district and media market across the country. Beer distributors are committed to ensuring alcohol is provided safely and responsibly to consumers of legal drinking age through the three-tier, state-based system of alcohol regulation and distribution. To learn more about America’s beer distributors, visit www.AmericasBeerDistributors.com. For additional updates from NBWA, follow @NBWABeer on Twitter, like NBWA on Facebook, follow NBWA on Instagram and subscribe to NBWA’s YouTube channel.