Texas distilleries generated nearly $2 billion in economic output and supported 4,900 jobs in the state in 2020

Researchers from the University of Texas at San Antonio (UTSA) today published “Economic Contributions of Distilled Spirits in Texas 2020,” a new study that highlights the significant economic impact Texas distillers have had on their local communities and the state in 2020 , despite the economic rigors of the pandemic and lingering Prohibition-era laws restricting sales.

“Over the past decade, the number of distilleries in Texas has grown dramatically, as has the industry’s economic impact on local economies and surrounding communities,” said Javier Oyakawa, principal investigator in the study of the UTSA Institute’s Center for Community and Business Research for economic. Development. “The number of distilleries in Texas has grown from just eight in 2008 to 190 today. These distillers play a vital role in the state’s economy by generating revenue, creating jobs, and providing wages and benefits.”

The study’s key findings show that Texas distillers contributed:

Nearly $2.0 billion in total economic output (or revenue)
Support for nearly 4,900 jobs in Texas
A staggering $334.9 million in salaries and benefits paid to employees
Approximately $481,450 of on-premises sales tax paid for mixed drinks. Taxes paid in 2020 fell by more than $240,000, or 34 percent, due to COVID-19-related closures;
Nearly $391,000 in gross income taxes for mixed drinks were paid. Taxes paid in 2020 fell about $200,000, or 34 percent, as a result of COVID-19-related shutdowns.

“What we found particularly interesting was that the Texas spirits industry continued to generate significant economic support for the state between 2019 and 2020, despite substantial declines in onsite sales due to the pandemic-related closures of distillery tasting rooms and restaurants,” said Tom. Tunstall, senior director for community and business research at the UTSA Institute for Economic Development.

The report was prepared for the United States Distilled Spirits Council.

“This study makes it clear that the continued growth of the Texas distillation industry offers great opportunities for the state, and that the collective economic contributions of these small businesses could be even greater if outdated laws restricting the sale of spirits were passed. be updated,” said Kristi Brown, senior director. of relations with the state government at the United States Distilled Spirits Council. Texas distillers are still not allowed to sell bottles of spirits to consumers on Sundays, despite being allowed to open their doors, offer tours and provide tastings. This just doesn’t make sense. And it’s time to modernize Texas alcohol laws. to help support this growing industry and liquor consumers across the state.”

Tax revenue from locally made spirits

Of the $108.9 million in excise taxes on spirits collected by the state in FY2020, nearly $8.6 million equates to locally produced spirits.
Of the $968.6 million in taxes on mixed drinks collected by state and local governments in FY2020, nearly $42.9 million equates to locally made spirits.

Industries influenced by distillers

The study also highlights the impact Texas distillers have on other local businesses. Aside from the distilleries, some of the top industries supported by the spirits industry are wholesalers of goods such as grains, machinery and equipment, glass container manufacturers and truck transportation.

Sectors Affected (total contributions in millions of dollars):

Wholesale – Non-durable Goods (grain merchants, alcoholic beverage merchants, etc.): $108.9
Wholesale – Machinery, Equipment and Suppliers: $44.4
Glass Container Manufacturers: $28.3
Trucking: $28.2

“The data shows the proliferation of distilleries and their continued growth helps support other local businesses, including farmers, glass manufacturers, truck drivers, equipment suppliers and more,” Tunstall said. “Supporting the distillation industry therefore has a much greater positive impact on the overall economy in Texas.”