UTSA study finds that Texas distilleries generated billions in economic output | UTSA Today | UTSA


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

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

“This study makes clear that continued growth of the Texas distilling industry presents great opportunities for the state, and that the collective economic contributions laws of these small businesses could be even greater if antiquated restricting spirits sales were updated,” said Kristi Brown, senior director of state government relations at the Distilled Spirits Council of the United States. “Texas distillers still aren’t allowed to sell spirits bottles to consumers on Sundays, despite being allowed to open their doors, offer tours and provide tastings.”

Brown added, “This simply doesn’t make sense. The decline in on-premise sales greatly impacted distillers, and it’s time to modernize Texas alcohol laws to help support this growing industry and spirits consumers throughout the state.”

TAX REVENUES FROM LOCALY MADE SPIRITS

  • Out of the $108.9 million in spirits gallonage correspondent excise taxes collected by the state in FY2020, close to $8.6 million to locally made spirits.
  • Out of the $968.6 million mixed beverage taxes collected by the State and by local governments in FY2020, close to $42.9 million correspond to locally made spirits.

INDUSTRIES IMPACTED BY DISTILLER

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.

Industries Impacted:

Total contributions in millions of dollars

  • Wholesale – nondurable goods (grain merchants, alcohol beverage merchants, etc.)

$108.9

  • Wholesale – machinery, equipment and suppliers

$44.4

  • Glass container manufacturers

$28.3

$28.2

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