Beer pours millions to state’s economy

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beerColorado beer distributors are making a big splash in the state’s economy, according to a new economic impact study by the National Beer Wholesalers Association.

Colorado beer distributors directly employ 2,457 people and they generate $987 million in total economic impact.

The association’s report is titled,  America’s Beer Distributors: Fueling Jobs, Generating Economic Growth & Delivering Value to Local Communities.

It offer  the first comprehensive look on beer distribution companies’ total impact on national and state economies. It was written by Drs. Bill Latham and Ken Lewis of the Center for Applied Business and Economic Research at the University of Delaware and gives 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.

“The beer distribution sector is a hidden gem that has been tremendously undervalued in previous economic reports,” said 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.”

Here are more Colorado findings:

  • Colorado beer distributor activities contribute $215 million to the federal, state and local tax bases. This does not include an added $124 million in federal, state and local alcohol excise and consumption taxes on beer sold in Colorado.
  • The Colorado beer distribution industry contributes more than $243 million in transportation efficiencies for the beer industry each year.
  • Beer distributor contributions to local community activities generate $2.7 million in impacts annually.

 

Key findings of the study include:

“America’s 3,300 independent beer distributors are proud to directly employ more than 130,000 hardworking men and women in communities across the country, providing significant economic value at many levels,” said NBWA 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.”

To view the full report, including state by state data, please visit www.nbwa.orgClick here to view data on the economic impact of beer distributors on the United States as a whole.