DETROIT — A new economic impact report released by the National Beer Wholesalers Association – America’s Beer Distributors: Fueling Jobs, Generating Economic Growth & Delivering Value to Local Communities – provides the first-ever comprehensive report on beer distribution companies’ total impact on national and state economies.
The report, produced by Dr. Bill Latham and Dr. Ken Lewis of the Center for Applied Business & Economic Research at the University of Delaware, provides an in-depth view of beer distributors’ economic contributions by taking into account how beer distributor activities are intertwined with many parts of the economy, especially the personal services sector. The report also accounts for the amount of resources contributed by beer distributors in supporting community events and local economic development, contributing to charitable causes and promoting responsible alcohol use and adds the impacts of these activities to the usual impacts of distributor operations.
Key findings of the study include:
- Michigan beer distributors directly employ 4,763 people.
- When the impacts of Michigan distributor operations, capital investment, and community involvement are considered, the total number of impact jobs is 13,400.
- Michigan beer distributors generate nearly $2 billion in total economic impacts.
- Michigan beer distributor activities contribute $427 million to the federal, state and local tax bases. This does not include an added $326 million in federal, state and local alcohol excise and consumption taxes on beer sold in Michigan.
- The Michigan beer distribution industry contributes $553 million in transportation efficiencies for the beer industry each year.
- Beer distributor contributions to local community activities generate $5.5 million in impacts annually.
“The beer distribution sector is a hidden gem that has been tremendously undervalued in previous economic reports,” said Dr. Latham. “Fueling more than 345,000 direct and indirect jobs across the country, beer distributors add $54 billion to the nation’s gross domestic product and offer far reaching benefits to brewers, importers, retailers, consumers and government agencies at all levels.”
“America’s 3,300 independent beer distributors directly employ more than 130,000 hardworking men and women in communities across the country, providing significant economic value at many levels,” said National Beer Wholesalers Association president & CEO Craig Purser.
“Distributors deliver economic benefits in their communities through local business-to-business commerce, investments in local infrastructure and capital assets, and tax revenue,” Purser continued. “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. This new economic impact report offers a thorough look at many of these previously unreported economic benefits.”