Economic Ripple Effect

The brewing industry’s economic benefits spread throughout the nation to individuals and companies providing products and services needed for the production, distribution, and sale of malt beverages.

For example, brewers purchase grains, hops, and other raw materials from farmers in Arkansas, California, Colorado, the Dakotas, Idaho, Illinois, Iowa, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Oregon, Texas, Washington, Wisconsin, and Wyoming.

The industry also purchases equipment and machinery for breweries, packaging for beverages, shipping services, and marketing and advertising services. Each year the industry spends billions of dollars for needed products and services.

These businesses in turn purchase products and services from other businesses, continuing the spread of economic benefits. And employees in all companies spend their earnings on personal purchases.

Thus, economic activity started by the malt beverage industry generates output and jobs in hundreds of other industries, often in states far removed from the original economic activity.