Published: October 10, 2008 11:22 am            

Study: Beverage sales can stimulate economic activity

Communities that vote to allow beverage alcohol sales can expect millions of dollars in increased economic activity, hundreds of additional jobs and a steady source of new tax revenue, according to a new study by The Perryman Group.

“Our analysis found that even after all other economic trends and retail patterns are taken into account, there is a statistically significant increase in retail sales following a change from ‘dry’ to ‘wet’. And, an area can reasonably expect a substantial gain in retail sales taxes the year after approval of a local option alcohol election,” said Dr. Ray Perryman, president of The Perryman Group.

The 52-page study by the Waco-based economic and financial analysis firm measured the economic impact of beer, wine and distilled spirits sales on three hypothetical areas that changed from “dry” to “wet.”



(1) – A 25,000-person community with per-capita income 10 percent below the state average.

Net impact of all beverage alcohol sales:

• Almost $19 million in annual spending in local economy

• $10.8 million in economic output

• 185 jobs

• $429,000 in local tax receipts per year

The economic contribution of distilled spirits sales:

• $5.8 million in annual spending

• Nearly $3.3 million in output

• 55 jobs

• $123,000 in local taxes per year



(2) – 100,000-population city with average incomes equal to

state average.

Impact of all beverage alcohol sales:

• $90.1 million in annual spending

• $50.8 million in output

• 863 jobs

$1.9 million in local taxes per year

The economic contribution of distilled spirits sales:

• $27.8 million in annual spending

• $15.5 million in output

• 264 jobs

• $566,000 in local taxes per year



150,000-population city with per-capita income

20 percent above the

Texas average.

Impact of all beverage alcohol sales:

• $134 million in annual spending

• $79.7 million in output

• 1,366 jobs

• $3.1 million in local taxes per year

The economic contribution of distilled spirits sales:

• $43.2 million in spending each year

• $25.3 million in output

• 440 jobs

• $964,000 in local taxes per year

        

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