Report: Beer is booming in Michigan


(Watch this story Monday morning on WZZM TV 13) Michigan’s beer industry is a nearly $ 10 billion business, according to a recent report.

The Beer Serves America report, written by the National Beer Wholesalers Association and the Beer Institute, found that Michigan’s brewing industry had an overall economic impact of $ 9.9 billion in 2020 and supported nearly 67,000 jobs in the breweries, distributors, retailers and more.

“Michigan’s independent and local beer distributors are proud to work hand-in-hand with brewers big and small here in Michigan, across the country and around the world to help them grow and prosper on a level playing field, ”said Spencer Nevins. , president of the Michigan Beer and Wine Wholesalers Association. “These new data clearly show that Michigan is not only the state of the Great Lakes, but also the state of the Great Beer, and Michigan beer distributors are proud to play a role in the continued success of it. beer industry.

Beer Serves America measures the impact of the malt beverage industry – as defined by its three tiers: brewing, wholesale, and retail – on the entire US economy. Overall, the industry contributes $ 331.8 billion to economic output, which is equivalent to about 1.6% of GDP.

Michigan’s beer industry created a total of 66,990 jobs, including 1,924 in brewing, 4,866 in distribution, 26,256 in retail, 1,223 in agriculture and 2,789 in manufacturing .

In total, these jobs paid Michigan workers $ 3 billion in wages and benefits and generated $ 1.5 billion in taxes for the state.

“Michigan’s beer distributors are deeply rooted in the communities they serve,” Nevins said. “This has been on display throughout 2020 as our members partnered with local distilleries to produce and deliver hand sanitizer to frontline medical workers and nursing homes in the event of a global shortage due to the COVID-19 pandemic and have supported local restaurants and their employees. “

Nationally, the beer industry accounted for about 2 million jobs, paid $ 102.9 billion in wages and benefits, and generated $ 55.2 billion in taxes.

Breweries and small micro-breweries number in the thousands in the United States, and most establishment growth comes from local and regional brewing activities. Of course, the beer industry has not come out of 2020 unscathed. Government-imposed shutdowns in response to COVID-19 have proven to be significant obstacles to growth.

Six hundred small breweries closed permanently due to COVID-19 closures, according to the report. Almost 150,800 jobs were lost because beer could not be sold in restaurants, entertainment venues and bars.

Even though the volume of beer sold has increased slightly over the past year, sales have fallen by more than $ 8 billion as consumers buy less premium beer. Since the COVID outbreak, there has been a shift from more expensive local beers in bars and restaurants to beers produced by domestic brewers and importers, which are generally more readily available for off-premises sale, according to the report.

Wholesale trade employment has grown 16.3% over the past decade, according to the US Department of Labor. The growth in wholesale jobs can be attributed to the development of new beer products, substantial growth in imports and more regional and national distribution by small producers. Despite this, like brewing jobs, wholesale jobs fell in 2020 due to COVID-19.

Data from November 2020 showed that jobs in the beer retail industry had fallen quite dramatically since 2018, as many states still blocked on-site establishments from fully opening. Off-site retailing grew 17% from 2018, while on-site jobs fell nearly 22.4%, according to the report.

Methodology

Beer Serves America, the study of the economic contribution of the US brewing industry, has been conducted regularly by the Beer Institute and the National Beer Wholesalers Association (NBWA). John Dunham & Associates (JDA) conducted the research in conjunction with the Beer Institute and the NBWA. This work used standard econometric models first developed by the US Forest Service and now maintained by IMPLAN. The data comes from industry sources, government publications and Infogroup.

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