America’s favorite adult beverage serves up more than just a refreshing drink.
A new study was released, during a Congressional briefing, by the Beer Institute and the National Beer Wholesalers Association (NBWA) on July 28. The study was named the Beer Serves America report, and it details the industry’s complete impact on the American economy. Based on government and industry data, the study examines direct, indirect and induced spending, labor and tax collection.
The Beer Serves America report highlights how the U.S. beer industry – from brewers and beer importers to beer distributors to retailers – generates nearly $253 billion in economic activity, produces $48.5 billion in tax revenue and supports 1.75 million jobs
The report concludes:
- Overall, the beer industry contributes about $252.6 billion in economic output which is equal to about 1.5% of the U.S. Gross Domestic Product.
- Brewers and beer importers directly employ 49,576 Americans. More than 70% of brewing jobs are linked to large and mid-sized brewers and beer importers.
- The number of distributor jobs has increased by more than 20% in the last decade, to more than 131,307.
- Suppliers to the brewing industry – enterprises that manufacture bottles and cans, cardboard case boxes, brewing equipment or marketing displays, for example – generate more than $83 billion in economic activity and are responsible for more than 383,190 jobs alone.
- More than $48.5 billion in tax revenue is generated by the production and sale of beer and other malt beverages. This is equal to nearly 40% of the retail price paid for beer by consumers.
“It can be said that beer truly serves America. Beer is more than our nation’s favorite adult drink – it is a powerhouse in job creation, commercial activity and tax revenue,” said Jim McGreevy, president and CEO of the Beer Institute, which released the study jointly with NBWA.
“As independent businesses, America’s licensed beer distributors are proud to provide more than 130,000 direct jobs with solid wages and great benefits to employees at more than 3,300 facilities, located in every state and congressional district across the country. These independent beer distributors provide significant economic benefits in their communities through local business-to-business commerce, investments in local infrastructure and capital assets and tax revenue. They provide services that improve efficiency for trading partners, especially small brewers and retailers, and they ensure fair prices and a broad selection of products for consumers to enjoy,” said Craig Purser, president & CEO, NBWA.
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, Dun & Bradstreet, the U.S. Bureau of Labor Statistics, the Alcohol Tobacco Tax and Trade Bureau and the U.S. Bureau of Economic Analysis.