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Economic Impact of Craft Brewing in Los Angeles (September 2015)

Monday, September 21, 2015

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LOS ANGELES – Craft breweries and brewpubs in Los Angeles County generated a $66 million economic impact in 2015, according to a new report published today by the National University System Institute for Policy Research (NUSIPR).

Los Angeles’s craft brewing industry has undergone a rapid expansion over the last few years. As craft breweries take a growing share of national beer sales, new brewpubs and breweries have opened throughout the region, creating jobs and sales tax revenue. Using survey data and business records, NUSIPR analyzed the industry’s economic dynamics in Los Angeles County.

Overall, we found that:

• Craft breweries are a rising economic power in the Los Angeles region. Based on survey responses and business records, NUSIPR estimates that brewers and brewpubs this year will have a $66 million direct economic impact in Los Angeles County.

• The economic contribution of craft brewers is greater than the economic impact of Anime Expo ($55 million), LA’s largest annual convention. NUSIPR also projects that the industry will generate $91.5 million in sales and $10.9 million in sales tax revenue in calendar year 2015.

• Los Angeles’s craft brewing industry is growing rapidly. Half of the brewery licenses in the LA region have been issued since 2014.

• Less than a quarter (21%) of industry jobs are brewing-related. Overall, the county industry employs 993 workers, most of which work in non-brewing occupations, such as hospitality, sales, and transportation.

“Interest in craft brewing is increasing nationwide, and Los Angeles is no exception,” remarked NUSIPR Senior Policy Analyst Vince Vasquez, and author of the report. “Compared to older, more established craft beer regions like San Diego, Los Angeles is still in its infancy. That said, there is great potential for craft brewing growth, as many of the breweries we examined haven’t begun bottling or canning their beers, or distribute outside Southern California.”