Banking & Finance, Economic Development, and Food Service & Agriculture

Beer has $8.8B impact in Michigan

Study shows industry also supported more than 62,000 jobs, both indirect and direct.

June 7, 2019
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An economic impact study showed the U.S. beer industry contributed over $8.8 billion annually to Michigan's economy and supported 62,688 jobs, both direct and indirect, in the state in 2018.

The survey, titled “Beer Serves America,” was jointly commissioned by the National Beer Wholesalers Association and the Beer Institute.

The 62,688 jobs impacted by the Michigan beer industry also accounted for over $2.6 billion in wages and benefits. The industry also generated $1.4 billion annually in business, personal and consumption taxes.

“Independent beer distributors are Main Street businesses whose economic contributions are felt in every community and congressional district across the country as they work with brewers large and small to grow brands and safely deliver America's favorite alcohol beverage to more than 640,000 licensed retailers nationwide," said Craig Purser, NBWA president and CEO.

On a national level, the beer industry generated more than $328 billion in economic activity, produced more than $58.6 billion in tax revenue and supported more than 2 million jobs in 2018. Independent beer distributors directly employ 141,600 Americans, an increase of more than 19% in the last decade. Brewers and beer importers directly employ 69,928 Americans, and about 58% of brewing jobs are linked to large and midsized brewers and beer importers.

“Beer Serves America demonstrates how brewers, beer importers and beer industry suppliers are creating jobs, providing wages and benefits to working Americans and supporting the economy in every state and every congressional district,” said Jim McGreevy, president and CEO of the Beer Institute.

Michigan beer distributors employ 4,724 people and have a direct impact of more than $830,000 on Michigan’s economy.

“It’s no secret Michiganders love their beer, and this new report helps quantify just how much the state’s beer industry contributes to Michigan’s continued economic comeback,” said Brien Fox, president of Henry A. Fox Sales in Grand Rapids.

Economic impact figures in the study were broken up by congressional, state house and state senate districts. The following data accounts for Michigan State Senate districts 28, 29 and 30, which cover most of Kent and Ottawa counties.

In Kent and Ottawa counties, home to big names like Founders Brewing Company and New Holland Brewing Company, the direct economic impact of the beer industry for 2018 was $283,227,700, accounting for brewers, distributors and retailers. The area had approximately 3,000 employees working directly in beer, and the industry paid $87,326,200 in wages last year.

The overall economic impact in this same area amounted to $837,632,500, along with $211,385,500 in wages across 6,011 direct and indirect jobs including agriculture, mining, construction, transportation, wholesale and other impacted industries.

Other West Michigan districts

Michigan Senate District 20, which covers Kalamazoo, had an overall economic output of $610,031,600, with 2,947 direct and indirect jobs, paying $133,908,300 in wages.

District 34, which covers, Muskegon, Newaygo and Oceana counties, saw an overall output of $145,602,000, 1,251 jobs and $46,962,600 in wages.

District 26, covering Allegan and Van Buren counties had a $347,819,500 economic output, 2,084 jobs and $96,034,900 in wages.

The Beer Institute was founded in 1862 and is a national trade association for the American brewing industry, representing both large and small brewers, as well as importers and industry suppliers.

The National Beer Wholesalers Association represents the interests of America’s 3,300 licensed, independent beer distributor operations in every state, congressional district and media market across the country.

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