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The Economic Impact of Beer Tops $10.5B in Michigan Alone

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With a major “launch of summer” holiday weekend at hand, there’s word this week that we in Michigan take things pretty seriously when we say “roll out the barrels.” According to a new report this week from the National Beer Wholesalers Association and the Beer Institute, Michigan’s beer industry racked up a more than $10.5-billion overall economic impact last year and it just keep growing.

New data in the report Beer Serves America also shows that Michigan beer distributors alone employ more than 4,750 people with a direct economic impact of more than $860-million.

Spencer Nevins is President of the Michigan Beer & Wine Wholesalers Association. He tells us, “Michigan’s independent, locally owned beer distributors strive to support small businesses, like craft brewers and local retailers, and help them grow and thrive on a level playing field.” He reports, “This new data shows that Michigan’s beer industry is flourishing, and the state’s beer distributors are proud to play a role in its ongoing success.”

The report shows just how big of a business beer is in the Great Lakes State. Nevins points out that Michigan’s beer distributors have deep roots in their communities and are proud to hire locally to fill jobs that pay well with good benefits.” He adds, “Thanks to Michigan’s beer distributors, our state is a top five beer producer in the country and is poised to keep growing through a system that promotes fairness and a level playing field.”

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The state’s entire beer industry, which includes brewers, distributors, retailers and supporting industries like agriculture, transportation and manufacturing, pumped more than $10.5 billion into Michigan’s economy in 2016. That figure is a sizable increase from the $6.64-billion reported just two years ago in the same study.

Including those 4,750 jobs at distributor networks, there are roughly 34,400 jobs in Michigan with direct ties to the brewing industry engaged in brewing, wholesaling and retailing roles. They knock down just shy of a billion dollars in earnings as well.

The entire state benefits from those kinds of jobs and payroll thanks to just short of $1.5-billion in taxes paid by both the businesses involved and the consuming public in Michigan alone.

The meteoric growth in craft brewers along the Makers Trail in Michigan’s Great Southwest is certainly contributing its fair share to the impact on the economy with new brewers and new beers rapidly rising all across the region.

Reacting to the news, the Executive Director of the Michigan Brewers Guild, Scott Graham, told reporters this week, “Beer is still growing in Michigan, even with no major industrial producers in Michigan.”

Craft brewing currently comprises around 10-percent of the sales market for beer in Michigan. Even with all that, the top selling beer brand in America continues to be Bud Light.

Whatever your style, brand, or taste in beer, the industry always encourages smart choices, moderation, and use of the designated driver system always, not just on holiday weekends. Drink responsibly.