Economic impact of beer and wine distributors in Montana.

• Author: Sorenson, Colin B.
• Position: Statistical data

Whether it's a deep ruby in color, refreshing and slightly tannic, or it's light copper with a crisp hop finish, Montanans enjoy having choice and variety in wine and beer. And Montana's 22 beer and wine distributors do a good job of delivering these products to the state's residents.

A Bureau of Business and Economic Research study found that Montana's beer and wine distributors are major contributors to the economy, with impacts throughout the state and across industry sectors.

Using a state-of-the-art policy analysis model, the Bureau found that because of the operations of the Montana Beer and Wine Distributors Association, Montana's economy is larger, more prosperous, and more populous. The operations of distributors result in a number of economic benefits in the state, including:

* 2,048 additional permanent, year-round jobs exist in the Montana economy;

* Montana households receive more than $120 million in income;

* disposable household income is more than $100 million higher;

* sales from businesses and organizations based in Montana are nearly $200 million higher;

* tax and non-tax revenues, not including property taxes, are more than $36 million higher; and

* the population is nearly 2,500 higher.

To determine the economic contribution of the Montana Beer and Wine Distributors Association, the Bureau worked with the association to gather information on sales, employment, and employee compensation, including the value of benefits packages, as well as other operational information. Using a well-respected economic model, Regional Economic Models Inc. (REMI), the Bureau was able to compare two scenarios--a Montana economy where the beer and wine distributing industry never existed versus an economy with the distributing industry--to find the economic impact.

Distributor Operations

Montana's beer and wine distributors are a pillar of the three-tiered system of state-based regulations on alcoholic beverage production, distribution, and retail sales, which came about in the United States after the repeal of Prohibition in 1933. These distributors have major impacts on the state and local economies in which they operate. However, their important roles as employers and contributors to our economic well-being are not well understood by many.

Beer and wine distributors are ever-present in the state, traveling within and among our communities to deliver products to approximately 3,200 licensed accounts throughout Montana's 56 counties. While...