In 2020, Texaas distillleries output totaled $1.28 billion, according to a new study from researchers at the University of Texas San Antonio’s Institute for Economic Development. Sales by Texas distilleries reached nearly $2 billion and supported 4,900 jobs which paid as much as $334.9 million in salaries and benefits to workers and contributed nearly $948.2 million of gross state product.
Those Texas distilleries represented $8.6 million in spirits gallonage taxes paid to the state in FY 2020. Covid-19 had a dramatic impact on the hospitality industry, slashing sales and on-premise mixed beverage gross receipts by 34%.
The Institute estimated the total output of Texas distilleries at $1.28 billion, which makes distilling far more important to the Texas economy that followed by wholesale trade of nondurables ($108.9 million), wholesale trade of machinery ($44.4 million), other real estate ($28.9 million), and glass container manufacturing ($28.3 million). Next is truck transportation ($28.2 million), followed by owner–occupied dwellings impact ($22.4 million), this industry represents how much homeowners spent on maintenance and repair of their homes. Also impacted were wineries ($23.9 million), marketing related services ($21.3 million), and insurance agencies and brokers ($19.6 million), insurance carriers ($14.6 million), among others.
In 2020, nearly 10% of the distillers’ output was distributed in Texas. The rest was exported out of state, resulting in a strong inflow of cash to Texas from other 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 of these small businesses could be even greater if antiquated laws 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. 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.”