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Economist tells legislators Arkansas alcohol sector generates about $5 billion in economic impact

November 18, 2021 | CITY, COUNTY & LOCAL AFFAIRS COMMITTEE - SENATE, Senate, Committees, Legislative, Arkansas


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Economist tells legislators Arkansas alcohol sector generates about $5 billion in economic impact
Lester Jones, chief economist for the National Beer Wholesalers Association, told a joint session of the Senate City, County & Local Affairs Committee and House Committee on Rules that the alcohol and beverage sector supplies a substantial economic footprint in Arkansas and that state policymakers should weigh fiscal outcomes when considering regulatory changes.

Jones presented department‑level excise and sales tax data, per‑capita consumption calculations and industry employment numbers. He said Arkansas’s total alcohol economic impact is "almost $5,000,000,000," produces "over a billion dollars in taxes," supports about 10,000 direct industry jobs and up to roughly 24,000 jobs when supplier and induced effects are included.

Jones also described national consumption as relatively stable on a per‑capita basis and noted that demographic shifts and a proliferation of small breweries and wineries have changed market structure and policy considerations for states. He recommended that lawmakers consider both the public‑health externalities and the fiscal and employment implications of any statute that alters how alcohol is sold, shipped or taxed.

The presentation did not propose specific legislation; it provided a fiscal backdrop to other testimony at the forum about regulation, direct‑to‑consumer shipping and enforcement. The committee received the economist’s materials and adjourned without a vote.

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