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Beer is big business in California: Creates 11,725 jobs, $5.3B economic impact

A new economic impact report released by the National Beer Wholesalers Association (NBWA) – 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:

California beer distributors directly employ 11,725 people. When the impacts of California distributor operations, capital investment and community involvement are considered, the total number of impact jobs is 31,976.

California beer distributors generate $5.3 billion in total economic impacts. California beer distributor activities contribute $1.1 billion to the federal, state and local tax bases. This does not include an added $1 billion in federal, state and local alcohol excise and consumption taxes on beer sold in California.

The California beer distribution industry contributes more than $3 billion in transportation efficiencies for the beer industry each year. Beer distributor contributions to local community activities generate $20 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 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.

The National Beer Wholesalers Association (NBWA) represents the interests of America’s 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 www.AmericasBeerDistributors.com.