USA, MI: Michigan’s beer industry worth $10.5 bln to the state in 2016

Michigan's beer industry is worth $10.5 billion to the state, according to a new national report that looked at employment and wages in 2016.

That's up from $6.64 billion two years ago, according to the same study from 2014.

About 34,390 jobs in Michigan are directly tied to beer, whether through brewing, wholesale or in retailing.

Those employees earn a combined $941,748,800, according to the report by the National Beer Wholesalers Association and the Beer Institute.

And another 14,134 people are employed in Michigan as suppliers to the beer industry, generating another $851 million in wages.

Meanwhile, taxes paid by consumers and businesses totaled a combined $1.49 billion in Michigan in 2016.

"This new data shows that Michigan's beer industry is flourishing," said Spencer Nevins, president of the Michigan Beer and Wine Wholesalers Association, in a news release.

He added: "(O)ur state is a top five beer producer in the country."

While overall numbers show an increased economic impact from beer in Michigan, a closer look at the 2014 numbers show changes:

Brewing employment in Michigan grew 81 percent over two years to 2,093.

Wholesaling employment grew 12 percent to 4,752.

Retailing jobs dropped 8.6 percent to 27,545.

"Beer is still growing in Michigan," said Scott Graham, executive director of Michigan Brewers Guild. "Even with no major industrial producers in Michigan."

About 10 percent of Michigan's beer sales is craft beer, Graham said, with top brands Bell's and Founder's followed by Short's. The next most-distributed brands include New Holland, Atwater, Dark Horse and Arcadia.

Michigan has more than 200 brewers, with many smaller operations accounting for the state's growth in brewing in wholesaling.

Nationally, the beer industry accounts for a total $414.3 billion in economic activity and $63.5 billion in taxes.

Overall beer sales are flat, but growth is coming from craft beer - which has 12 percent of the U.S. market share - and imports, while domestic sales are declining, according to the national Brewers Association.

Top-selling brands in the U.S. are Bud Light, Coors Light, Miller Lite and Budweiser.

The most recent economic impact report from the Beer Institute shows other ways the U.S. beer market is changing:

The direct and supplier components of the malt beverage industry have grown by more than 17 percent since 2014.

About 15,160 more people work in breweries than did in 2014.

Nearly 2,950 additional beer wholesaling jobs were created in 2016 than were in 2014.

Unclear is the reason for the retail job declines in Michigan. The category is based on U.S. Department of Labor data for employment in convenience stores, restaurants and taverns that sell beer, with about two-thirds of national workers in 'on-premise' beer consumption jobs, with the rest sell for 'off-premise.' There are about 16,000 stores that sell beer in Michigan.

22 May, 2017