ECONOMIC CONTRIBUTION

New Study Shows Beer Industry Contributes $1.44 Billion Annually to Iowa’s Economy

Report Tallies Jobs, Wages, and Overall Economic Impact 

Des Moines, Iowa – America’s beer industry, made up of brewers, beer importers, beer distributors, brewer suppliers, and retailers, directly and indirectly contributes $1.44 billion annually to Iowa’s economy according to a new economic impact study. The industry’s economic impact includes 19,035 jobs - paying $426 million in wages - as well as $294 million in federal, state, and local taxes. The study of 2006 data was commissioned by the National Beer Wholesalers Association (NBWA) and the Beer Institute. 

“Beer distributors are independent family businesses like mine that provide a wide selection of fresh, quality beer to the nation’s retailers and strengthen the U.S., state, and local economies. Over 90,000 hard-working men and women across the country are employed by America’s beer distributors. These people do not work for minimum wage. They earn quality wages and benefits,” said Betty Buck, NBWA board chair and president of Buck Distributing Co. in Upper Marlboro, Maryland.

“This study shows that more than ever, America’s brewers play a pivotal role in promoting strong and robust economic growth throughout our country,” said August A. Busch IV, president and chief executive officer, Anheuser-Busch Companies, Inc., and chairman of the Beer Institute. “Brewers in Iowa and all 50 states have been supporting the economy in their communities for generations, creating jobs for their neighbors, tax revenue for public services, and promoting alcohol awareness responsibility initiatives for retailers, schools, and families.” 

According to the study, the direct and indirect output of brewers, importers, beer distributors, and retailers into Iowa’s economy is $1.44 billion each year. The beer industry directly employs 12,412 people in Iowa, paying them $225 million in wages. Large and small brewers and beer importers employ 73 people in Iowa, and Iowa’s 45 beer distributors employ approximately 1,332 people. Beer is a key driver of profitability for the 8,010 licensed retailers in Iowa, according to TDLinx, a service of The Nielsen Company and the recognized leader in location information management. Beer sales help support roughly 11,007 jobs at these retailers, which include supermarkets, convenience stores, restaurants, bars, stadiums, and other outlets. 

“Millions of hard-working Americans earn their livelihood in brewing or beer distribution. This is an industry that takes great pride in the fact that its employees have good wages, employer-provided health care, and good benefits,” said NBWA president Craig Purser. “America’s beer distributors also work within a framework of individual state laws to ensure their products are sold only to licensed retailers who in turn are responsible for selling only to adults of legal drinking age.” 

Nationally, the beer industry directly and indirectly contributes nearly $190 billion annually to the U.S. economy and provides more than 1.7 million jobs. The production of beer helps support other segments of the economy as well. For example, the study showed more than $4 billion in economic contributions for the agricultural sector, including malting barley ($537.8 million), hops ($280.7 million), brewers rice ($222.9 million), and brewers corn ($58.4 million). 

“These figures demonstrate that the beer industry extends beyond those who make and distribute our products,” said Jeff Becker, president of the Beer Institute. “As the single largest purchaser of rice in the country and one of the leading purchasers of other agricultural goods, the beer industry’s contributions to America’s farm economy are helping support rural families and small businesses coast to coast.” 

In addition to strengthening the Iowa and U.S. economies, the industry plays a significant role in promoting responsible consumption of its products. Brewers, importers, and independent beer distributors have invested hundreds of millions of dollars in communities across the country to develop and implement numerous programs to promote responsibility and help fight alcohol abuse. These efforts, along with those of parents, law enforcement, federal and state alcohol beverage regulators, educators, and other community groups, have all contributed to declines in illegal underage drinking and drunk driving over the past two decades, according to a variety of independent and government data. 

The complete Beer Industry Economic Impact study, including a state-by-state and congressional district breakdown of economic contributions, is available at the Beer Serves America Web site, http://www.beerservesamerica.org

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Founded in 1938, the National Beer Wholesalers Association advocates before government and the public on behalf of more than 2,700 licensed independent beer distributors with operations servicing every congressional district and state across the country. Beer distributors are committed to ensuring that the products they provide are consumed legally, moderately and responsibly: 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: http://www.beerinstitute.org.