Report: MA Beer Distributors Pump Nearly $900 Million into State Economy

Wednesday, February 06, 2013

GoLocalWorcester News Team

Massachusetts beer distributors bring more than just beverages to the Bay State, according to a new study of the economic impact of the industry in the Commonwealth.

The National Beer Wholesalers Association (NBWA) released a new report, entitled "America's Beer Distributors: Fueling Jobs, Generating Economic Growth & Delivering Value to Local Communities," to attempt to measure for the first time just how far the beer they deliver flows when it comes to creating jobs and generating economic activity.

A Hidden Gem in the Economy

Bill Latham and Ken Lewis of the Center for Applied Business & Economic Research at the University of Delaware, who produced the report, found that in Massachusetts, beer distributors directly employ 1,737 workers, with the total number of jobs sustained through operations, investment and community involvement at over 4,500.

Between those workers and distribution sales, Latham and Lewis calculated that the Commonwealth's beer distributors generate a total economic impact of $896 million.

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

"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."

Far-reaching Benefits of Beer Distribution

Those far-reaching benefits include $200 million in contributions to federal, state and local tax bases in Massachusetts, not to mention the $166 million in federal, state and local alcohol excise and consumption taxes in the Bay State.

In addition, the NBWA report found that the Commonwealth's beer distributors contribute over $1 billion annually in transportation efficiencies, and their contributions to local community activities have been estimated at generated $3.3 million in economic impacts each year.

Nationwide, beer distribution activities contribute nearly $10.3 billion to the federal, state and local tax bases and almost $11 billion in excise and consumption taxes.

"Distributors deliver economic benefits in their communities through local business-to-business commerce, investments in local infrastructure and capital assets and tax revenue," said Craig Purser, president and CEO of the NBWA.

"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."