The beer industry has grown into an economic force in Delaware. According to a report from the Beer Institute and the National Beer Wholesalers Association, brewing accounts for 200 jobs in the state.
The state’s beer wholesalers employ 330, while retail accounts for nearly 2,300 jobs. Credit for the increase in brewing jobs comes from the growth of the craft brewing industry, led in Delaware by Dogfish Head in Milton and the Old Dominion-Fordham free-standing breweries. Dogfish Head has undertaken an expansion program.
To see the report, click here.
Craft breweries have been taking sales away from mass production brewers with distinctive offerings.
Distributors have responded by taking on more niche beer business, with the major brewers also operating craft beer-style breweries. One example is Leinenkugel, a small Wisconsin brewer that is owned by InBev Anheuser-Busch.
Delaware has nine breweries, with Victory Brewing expanding to a site in Parkesburg, Pa., 21 miles northwest of Newark.
The bulk of employment in the state remains at the distributor and retailing level. Based on the figures, the average brewery job pays $40,000, according to the figures, compared to $24,000 for retailers. However, the highest paid area came in wholesaling, which is unionized and has an average income figure of $74,000.
The total economic impact of the beer industry in the state totals $465 million, with the total number of jobs estimated at 4,700.
The industry is not shy about reporting its economic impact, due to the tendency of legislators to levy “sin taxes” on consumption. In Delaware, state and federal consumption tax revenues total $16.5 million.
On a related note, two University of Delaware economists published an economic impact report for the wholesale side of the industry.
America’s Beer Distributors: Fueling Jobs, Generating Economic Growth & Delivering Value to Local Communities was produced by Bill Latham and Dr. Ken Lewis of the Center for Applied Business & Economic Research at the University of Delaware.
The study looks at beer distributors’ economic contributions by taking into account how beer distributor activities are intertwined with many parts of the economy, especially the personal services sector.
