Fix the budget! Drink more beer! Beer industry contributes $33.2B to Calif economy
on 09/03/11 at 11:39 amBeer
A new economic impact study shows America’s beer industry, made up of brewers, beer importers, beer distributors, brewer suppliers and retailers, directly and indirectly contributes $33.2 billion annually to California’s economy. Commissioned by the National Beer Wholesalers Association (NBWA) and the Beer Institute, the study shows that the industry generates nearly 229,746 jobs in California – which accounts for $10.5 billion in wages and benefits. The industry also contributed $6 billion in the form of business, personal and consumption taxes in 2010.
“As independent businesses, America’s 3,300 licensed beer distributors are proud to provide more than 98,000 quality jobs with solid wages and great benefits to employees in every California and congressional district across the country,” said Larry Del Papa, president and CEO of Del Papa Distributing Company, Inc. in Galveston, Texas, and chairman of NBWA. “Beer distributors are deeply rooted in their local markets, so it’s only natural that they work hard to keep their communities safe – especially by fighting underage drinking and drunk driving.”
“Brewers across the country, large and small, remain an integral part of their communities. Not only do they promote alcohol responsibility programs for local retailers, schools and families in California, but, as this new study shows, they also create sustainable jobs and important tax revenues that contribute to our nation’s economy,” said Dave Peacock, president of Anheuser-Busch and chairman of the Beer Institute. “America’s brewing industry continues to play a significant role in supporting the economy in each and every California.”
According to the study, the beer industry directly employs 117,240 people in California, paying them $4.1 billion in wages. The 222 beer distributors in California employ 11,743 people. Large and small brewers and beer importers employ approximately 5,940 people. Beer sales help support roughly 99,557 jobs at licensed retailers, which include supermarkets, convenience stores, restaurants, bars, stadiums and other outlets.
“In addition to providing quality jobs with solid wages, the three-tier beer distribution system provides transparency and accountability while offering American consumers with tremendous choice and variety – nearly 13,000 different labels of beer – at a great value,” added NBWA President Craig Purser. “This time-tested, effective system of California controls, in which America’s beer distributors play a critical role, works to ensure alcoholic beverages are sold only to licensed retailers who in turn are responsible for selling only to adults of legal drinking age,” added NBWA President Craig Purser.
“These numbers demonstrate that our industry continues to play an integral role in providing jobs and revenue necessary to heal our recovering economy,” said Joe McClain, president of the Beer Institute. “For this reason, it is important that California and federal officials consider equitable tax policies that do not unduly harm an industry that aids economic growth.”
Nationally, the beer industry directly and indirectly contributes more than $223 billion annually to the U.S. economy and provides more than 1.8 million jobs – generating nearly $71.2 billion in wages and benefits. The industry also paid $44.7 billion in business, personal and consumption taxes in 2010. Consumption taxes included $3.6 billion in federal excise taxes and $1.7 billion in state excise taxes and $5.9 billion in state and local sales taxes.
In addition to strengthening the U.S. economy, the industry plays a vital role in promoting responsible consumption of its products. Brewers, importers, and independent beer distributors, licensed at both the California and federal levels, dedicate significant resources to develop public safety, education and prevention campaigns and to promote federal and local programs to help reduce underage drinking and drunk driving. These efforts, along with those of parents, law enforcement, federal and California alcohol beverage regulators, educators, and other community groups, have helped contribute to declines in underage drinking and drunk driving for nearly three decades, according to government data.
The Economic Impact study was conducted by John Dunham & Associates based in New York City and covers data compiled in 2010. The complete study, including California-by-California and congressional district breakdowns of economic contributions, is available at Beer Serves America, www.BeerServesAmerica.org.
The National Beer Wholesalers Association (NBWA) represents the interests of 3,300 licensed, independent beer distributor operations in every California, 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, California-based system of alcohol regulation and distribution. To learn more about America’s Beer Distributors, visit http://www.nbwa.org.
The Beer Institute, established in 1986, is the national trade association for the brewing industry, representing both large and small brewers, as well as importers and industry suppliers. The Institute is committed to the development of sound public policy and to the values of civic duty and personal responsibility: www.beerinstitute.org.