Beer boasts boost to Canadian economy, new study suggests

OTTAWA—A new study takes a glass-half-full approach to Canada’s beer industry, claiming every dollar spent on beer here generates $1.12 in the nation’s economy.

According to the study from the Conference Board of Canada, the Canadian beer industry supports one out of every 100 jobs in the country and represents more than eight per cent of all Canadian household spending on food and beverage.

“Beer has been a part of Canadian life for hundreds of years,” director of national and provincial forecast with the Conference Board said in a statement about the study.

“The beer economy is a significant employer. No matter where people buy beer, they support jobs across the country.”

The study notes that the beer economy in Canada is larger than the brewers themselves—it includes retail sales, transportation and wholesale distribution, and the agricultural products needed to make beer.

The beer economy supports more than 163,000 jobs across the country.

The Conference Board estimates that total beer sales—including stores and on-premise-sales at restaurants, pubs, airports, trains, concerts and sporting events—averaged $12.3-billion annually between 2009 and 2011.

Consumption accounted for $13.8-billion annually in economic activity during the same period.

Beer consumption also generates $5.8-billion in annual tax revenues for federal, provincial, territorial and municipal governments.

For every dollar spent, according to the study, 44 cents goes to government in the form of personal income taxes, corporate income taxes and taxes on products.

The study was commissioned by Beer Canada, the nation’s brewers association.