By John Bodnovich, Executive Director
BEER INDUSTRY HIT BY COVID -- 651,000 Jobs Supported by U.S. Beer Industry to be Lost Due to COVID-19 Pandemic -- Today, the Beer Institute, the Brewers Association, the National Beer Wholesalers Association and the American Beverage Licensees released a report from a leading economic firm showing more than 651,000 jobs supported by the U.S. beer industry will be lost by the end of the year due to the COVID-19 pandemic. These job losses include more than 3,600 brewing jobs, 1,800 distributing jobs and 400,000 retail-related jobs.
“Even though the vast majority of bars and package stores have diligently followed COVID-19 regulations and guidelines so they can continue to serve their customers and communities, the unfortunate truth is many beer retailers have been forced to lay-off employees or close their doors altogether due to the COVID-19 pandemic,” said John Bodnovich, executive director of American Beverage Licensees. “Bars & taverns that have been allowed to reopen are fighting to simply stay in business in the face of occupancy and hours of operation restrictions that have many teetering on the brink of collapse. These local businesses need Congress’ support and additional COVID-19 relief to survive, not the threat of tax increases on their industry.”
In 2018, the Beer Serves America study concluded America’s beer industry supports more than 2.1 million jobs, contributing more than $328 billion to the U.S. economy. The beer industry pays annually nearly $59 billion in taxes, meaning—on average—taxes account for 40% of the cost of a beer.
-- No, Beer Sales Aren't Booming from Daily Beast: “All those happy news stories full of winks and grins about how much we're drinking during the coronavirus pandemic are based on the off-premise side. Sales numbers for off-premise are easier to track and because these numbers are so precise and so readily available, reporters sometimes make the mistake of assuming they represent total beer sales. But they do not cover on-premise establishments, which is a big part of total sales and have basically disappeared since March. Even with the pantry loading that occurred in the spring, store sales aren't enough to offset the loss of on-premise.”
American Beverage Licensees is the preeminent national trade association for beverage alcohol retailers. Direct retail beverage alcohol sales in the United States generate more than 2.03 million well-paying jobs. ABL’s thousands of on-premise and off-premise licensee members are independent and often family-owned establishments. The beverage retailing industry pays over $27.9 billion in federal taxes and $20.0 billion in state and local taxes. To learn more about ABL, visit www.ablusa.org.