|Washington, D.C. – Each year, people across Tennessee mark the Labor Day holiday with backyard cookouts and ice-cold beer. Alongside the Fourth of July and Memorial Day, Labor Day is one of the busiest sales periods for beer in the United States. Sales during the Labor Day holiday also contribute to over $2 billion of economic activity generated by the beer industry in Tennessee each year. |
“The hard-working men and women of Tennessee’s beer distribution industry deliver a wide selection of high-quality product to retailers across the state, giving consumers in Tennessee a great choice at a tremendous value. They operate within a framework of Tennessee’s laws to ensure their products are sold only to licensed retailers,” said Craig Purser, president and CEO of the National Beer Wholesalers Association (NBWA). “Tennessee’s beer distributors also provide their local communities with jobs that include above-average pay and quality health benefits, and they constantly give back through their involvement in countless charitable endeavors.”
“Labor Day is the perfect time to recognize the 28,447 hard working people in Tennessee who comprise the labor force behind the beer industry,” said Jeff Becker, president of the Beer Institute (BI). “Last year, these employees collectively generated over $788 million in wages and benefits and more than $606 million in federal, state, and local taxes.”
Thanks to the hard work of these individuals, America’s beer industry grew by 2.2 percent in 2006 by producing and distributing over 210 million barrels of beer.
The employees of Tennessee’s beer industry help support other segments of the economy as well. For example, recent studies showed that the beer industry provides more than $4 billion in economic contributions to the agricultural sector, including malting barley ($537.8), hops ($280.7), brewers’ rice ($222.9 million), and brewers’ corn ($58.4 million).
The over $606 million in taxes collected from the Tennessee beer industry helps fund many local projects such as new schools and roads. This revenue includes $323.7 million in excise taxes and $232 million in sales, gross receipts and other levies over and above federal, state, and local taxes paid by all Tennesseans.
“Tennessee’s local governments benefit significantly from beer sales,” said Rich Forge, president of the Tennessee Malt Beverage Association. “The 17% local wholesale tax generated $112 million in tax revenue for Tennessee’s cities and counties in 2006.”
The dedicated men and women of the Tennessee beer industry are active and responsible members of the communities in which they live and work, and contribute their time to local youth and charitable organizations. In addition, brewers, importers, and independent beer distributors have invested hundreds of millions of dollars in communities across the country to develop and implement numerous programs to promote responsibility and help fight alcohol abuse.
The complete economic impact of the beer industry, including a state-by-state and congressional district breakdown of economic contributions, is available at the Beer Serves America Web site, www.beerservesamerica.org.