Beer poured $250 billion into economy last year

Between sales, jobs and tax revenue, brewers are picking up a larger share of the tab.

By Jason Notte Mar 21, 2013 3:48PM
Credit: 2011 Staci Kennelly/Flickr/Getty Images
 Caption: Pint of beer on barThe next time someone hassles you for cracking open a beer on a weekday before 5 p.m. or when their child is in the pub trying to enjoy a good round of ketchupy french-fry flinging, tell them you're not just drinking a beer: You're supporting a $250 billion American industry.


The folks at beer industry lobbying group The Beer Institute and the the beer distribution group National Beer Wholesalers Association released their bi-annual economic impact study on Thursday and discovered that America's total beer industry produced $246.6 billion in economic activity last year. That's more than 2,800 breweries, 3,700 distributors and 576,000 bars and stores dumping $49.1 billion in tax dollars into the nation's coffers.


That's also 1.1 million jobs paying out $31.8 billion in wages and benefits each year, though that generously lumps in convenience store, restaurant and stadium workers with brewery and distributor employees. That said, there's no questioning the growth of an industry where breweries numbered fewer than 500 as recently as 1993.


So who gets credit for the growth? Small regional and craft brewers insist they do, as craft beer industry group The Brewers Association recently released figures indicating that craft beer sales rose 15% by volume and 17% in dollars during 2012 and now constitute 6.5% of the beer market's volume and 10.2% of its sales.


Impressive, but not even close to the whole story. Not included in the Brewers Association's numbers are large brewers like Anheuser-Busch InBev (BUD) and MolsonCoors (TAP), regional brewers like D.G. Yuengling and imports like Heineken USA and Corona importer Crown. That's a shame, since A-B shipments were up 0.6% in 2012, Yuengling's production jumped 10.6% and Crown and Heineken put out 3.5% and 5% more beer, respectively, according to Beer Marketer's Insights.


Together, all U.S. breweries employ nearly 44,000 workers, pay out $3.9 billion in wages and benefits a year and buy $850 million in hops, barley and yeast from American producers. U.S. and import brewers both fuel nearly 130,000 jobs in distribution and drive the system that gets your beer from the brewery to the racks.


Is it perfect? No. The small brewers hate the three-tier system that keeps them from self-distributing in many states and the big brewers don't understand why the Goose Island Bourbon County Stout and AC Golden Winterfest isn't "craft." But it's all part of an industry that's as big a part of the American economy as livestock, business travel and health and wellness products. While brewers will likely keep squabbling over who's a soulless monopoly and who's an effete, aloof member of the hop-heavy cool kids' club, maybe this one bit of good news can get everyone to the same table together to toast a job well done.


More on moneyNOW

5Comments
Mar 21, 2013 4:15PM
avatar
Beer - It's not just for breakfast anymore.  Support your local microbrewery!
Mar 21, 2013 5:46PM
avatar
I am happy to know I've been doing my part to support the economy! Mrs. Blooper are you listening?
Mar 21, 2013 6:41PM
avatar
While I'd have to admit that I do enjoy drinking beer, I can't help but think that cannabis legalization is a much safer alternative to alcohol.
Mar 21, 2013 5:33PM
avatar

I am all for buying American but my beer I need an import. I drive an American made car I do my best to fined American made threads. I even paid more for my American made flat screen TV. I look at labels I try to buy American first but my beer I need an import. Nothing taste so good as Heineken  Lets just face it America dose not make a good beer some are good enough and American Microbrews are a hit of miss but one Samuel Adams but then if you can fined it.  

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2013 Microsoft. All rights reserved.

Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.

Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.

Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.

Trending NOW

What’s this?

About moneyNOW

moneyNOW brings users smart, original and entertaining takes on the latest business and investing topics that are buzzing on the web.

MARKET UPDATE

[BRIEFING.COM] The S&P 500 ended this week with a bang, roaring to a new all-time high on the back of stronger-than-expected economic data, influential leadership, and an ongoing appreciation for the Fed's monetary policy support.

The bullish bias was evident in premarket action as the S&P futures pointed to a higher start without the benefit of any definitive news catalyst.  Stocks indeed benefited from a blast of buying interest at the opening bell on this ... More

TOP STOCKS

Scary story: the 2013 market looks like 1987

All hail the bull market, which ended the week with a big rally. But it also is starting to look a little like 1987, which suffered an epic blow-out.

MSN MONEY'S