Researchers at The University of Texas at San Antonio (UTSA) released, “Economic Contributions Of Distilled Spirits In Texas 2020,” a new study highlighting the significant economic impact Texas distillers made to their local communities and the state in 2020, despite economic hardships of the pandemic and lingering Prohibition-era laws restricting sales.
Key findings from the study show Texas distillers contributed:
- Nearly $2.0 billion in total economic output (or revenues)
- Support for close to 4,900 Texas jobs
- As much as $334.9 million in salaries and benefits paid to workers
- Approximately, $481,450 from on-premise mixed beverage sales taxes paid. The tax paid in 2020 declined by more than $240,000, or 34 percent, due to COVID-19-related closures.
- Close to $391,000 from on-premise mixed beverage gross receipts taxes were paid. The tax paid in 2020 declined around $200,000, or 34 percent, due to COVID-19-related closures.
Tax Revenues from locally made spirits:
- Out of the $108.9 million in spirits, gallonage excise taxes collected by the state in FY2020, close to $8.6 million correspond 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 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.
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 |
| Truck transportation | $28.2 |
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