May 18, 2012

Economic impact of the Texas craft brewing industry

In these difficult economic times, Texas needs every portion of the economy growing as quickly as possible. The Texas Craft Brewers Guild has just completed an economic study that shows how craft beer benefits the state economy at large, and how H.B. 660 would contribute to economic growth. Read the full report here. Here are some of the key points:

  • Texas is home to 40 licensed small craft breweries, but less than 0.5% of beer consumed in Texas comes from these breweries
  • HB 660 proposes statutory changes to allow small craft breweries to grow
  • Following similar changes in 2003, the Texas wine industry grew from $132 million of annual output and an estimated 1,800 jobs in 2001 to $1.35 billion and over 9,000 jobs in 2009
  • If craft beer followed the same trajectory as wine, the next eight years could see (direct economic impact only):

*$678.8 million per year of additional output

*6,829 new jobs created

*$191.8 million of new payroll

*$56.8 million of annual state and local tax revenue generated

  • The wine trajectory is only the start.  Texans consumed 33 million gallons of wine in 2008 – but they consumed 615 million gallons of beer!  Texans drink 19 times more beer than wine.

Read the full report here.

Comments

  1. Marilyn P. says:

    Thank you Scott for doing this report. I’ve been in favor of HB 660 all along, but during this 82nd legislative session, with the Governer asking for so many budget cuts and his continual resistance to using the ‘rainy day fund’, etc. to balance the Texas Budget, I feel like our most serious law makers might hesitate to be seen backing a ‘beer bill’.

    The arguements that have been posted on the Texas Beer Freedom Website have all been great …. but I had been hesitant to write to my personal friends (who are St. Reps. and 1 Senator), because I wanted to find a talking point that would make it easier for them to publicly support HB 660 for their constituants who could possibly ask them — why are you backing this Bill when Texas’ is facing so many more serious problems.

    This paper is what I believe can be the answer. But ….. I think we need to get the word out ASAP in a form similar to the ‘sample letter to your representative’ that have posted on several websites. All the other talking points were great, but selling HB660 as a way to help solve our state’s economic woes makes the final and I think CRITICAL point to the passage of the Bill. My suggestion is that you quickly incorporate this information in a new ‘sample letter to your representatives’, and we all give it a HUGE push for this week’s hearing. That means we need to get it out fast!

    Once again, thanks for all your hard work on this!

    Marilyn Pfeiffer

    • Lou DiCello says:

      Thanks for the feedback Marilyn! Your poinst is well made, and we will update the letter example on the website to include additional economic impact information. It is also important to note that each person who writes their representative should individualize their comments based on their opinion. Rather than simply cutting and pasting an example we provided. We appreciate you contacting your friends and representatives about suporting HB 660. Thanks for taking time to provide the feedback! Hope to see you at the hearing and loby day tomorrow!

      Lou DiCello

Trackbacks

  1. [...] You are probably thinking, “What can I do?” Easy, contact a committee member. Before contacting, gather a handful of talking points from Scott Metzger’s ECONOMIC IMPACT AND POTENTIAL OF THE TEXAS CRAFT BREWING INDUSTRY. [...]

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