Rob passed two articles on to me that I thought were interesting. He would have posted them himself but he is too busy being our homebrew club president and tomorrow is our meeting. The first is from the Washington Post and is an article about their upcoming Beer Madness 2011. It is definitely worth the read.
The second is a press release from the National Beer Wholesalers Association and is about the economic importance of the business of beer. Since it is from NBWA it is a slanted (toward the distributor) look at the Michigan brewing industry. It downplays the breweries and I find it hard to believe that the 80 plus Michigan breweries only employ 484 people. It is posted below. It’s definitely an interesting read if nothing else. The timing of this press release at a time when state governments are looking for new revenue streams can’t be coincidental.
New Study Shows Beer Industry Contributes $5.2 Billion Annually to Michigan’s Economy
Despite Economic Downturn, Data Shows Quality Jobs, Solid Wages, and Overall Economic Impact in Michigan
WASHINGTON, March 8, 2011 /PRNewswire-USNewswire/ — 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 $5.2 billion annually to Michigan’s economy. Commissioned by the National Beer Wholesalers Association (NBWA) and the Beer Institute, the study shows that the industry generates nearly 56,437 jobs in Michigan – which accounts for $1.8 billion in wages and benefits. The industry also contributed $1.1 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 state 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 Michigan, 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 state.”
According to the study, the beer industry directly employs 36,154 people in Michigan, paying them $926.9 million in wages. The 130 beer distributors in Michigan employ 3,163 people. Large and small brewers and beer importers employ approximately 484 people. Beer sales help support roughly 32,506 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 state 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 state 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 state 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 state 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 state-by-state 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 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 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.
SOURCE National Beer Wholesalers Association
National Beer Wholesalers Association
CONTACT: Andrew Koneschusky, Beer Institute, +1-202-777-3553; or Emily Kuhn, NBWA, +1-202-289-2001
Web Site: http://www.BeerServesAmerica.org