Raise a glass to beer drinkers in British Columbia, who are doing more than their part to support the provincial economy, according to a Conference Board of Canada report released November 5.
The study, which was conducted in conjunction with Beer Canada, found that for every dollar spent on beer in the province, about $1.11 is generated in real gross domestic product.
Jacqueline Palladini, junior economist at the Conference Board of Canada, said the entire supply chain in the "beer economy," from the farmer growing the ingredients to those serving or selling the product, is included in that $1.11.
"The industries along the supply chain keep adding value," Palladini told Business in Vancouver. "Once the beer is brewed, they package it, they transport it – each step of the way, they are adding value, to the point where you get more than the initial dollar you put in."
Luke Harford, president of Beer Canada, elaborated on that point.
"[For example], it generates employment in the food services industry," Harford said. "When that person goes and gets a paycheque, that person goes and spends that money into the economy. It has an induced effect – a spinoff effect."
In addition to this induced effect, thirsty British Columbians and tourists to our province end up spending more than just the price of the beer they drink. The tourism industry benefits as B.C. brews attract travelers looking to sample the local product. This in turn boosts revenue earned by hotels and other businesses in the travel sector. Having a beer in a restaurant can often lead to consumers ordering a meal to go with their beverage.
The board estimates that $0.86 of every dollar spent on beer in B.C. is generated within the province, with the remaining $0.25 generated in other provinces.
Other findings of the study include:
- B.C.'s beer economy employs 18,967 jobs – with 73% of those jobs supported solely by local beer consumption;
- this province has the second-highest number of breweries in Canada with 72 breweries, second only to Ontario; and
- British Columbians purchased the least amount of beer in the country, with 205 bottles per person bought in 2012, compared with a national average of 235 bottles.
For the purpose of the study, the Conference Board combined all "beer economy" businesses in the territories with the B.C. numbers. These businesses employ 482 staff members.
