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Alabama Beer Distributors Generate 2,356 Direct Jobs, $773 million in Total Economic Impacts

February 19, 2013

New Study Measures Jobs, Economic Impact and Community Service

Montgomery, AL – 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:

  • Alabama beer distributors directly employ 2,356 people.
  • When the impacts of Alabama distributor operations, capital investment and community involvement are considered, the total number of impact jobs is 5,726.
  • Alabama beer distributors generate $773,380,616 in total economic impacts.
  • Alabama beer distributor activities contribute $318,256,284 to the federal, state and local tax bases. This does not include an added $218 million in federal, state and local alcohol excise and consumption taxes on beer sold in Alabama
  • The Alabama beer distribution industry contributes more than $272,430,278 in transportation efficiencies for the beer industry each year.
  • Beer distributor contributions to local community activities generate $2,508,003 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.”

“Alabama’s 47 independent beer distributors are proud to directly employ 2,356 hardworking men and women in communities across the state, providing significant economic value at many levels,” said Alabama Wholesale Beer Association Executive Director Donna Alexander.

“America’s 3,300 independent beer distributors deliver economic benefits in their communities through local business-to-business commerce, investments in local infrastructure and capital assets and tax revenue,” added NBWA President & CEO Craig Purser. “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.org. Click here to view data on the economic impact of beer distributors on the United States as a whole.

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