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Survey finds breweries have a billion dollar impact on state economy

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July 22nd, 2024 by Ric Hanson

(Radio Iowa) – A survey by the Iowa Brewers Guild finds Iowa breweries generated a total economic impact of one-point-two-five billion dollars from operations, trade, and tourism in 2022. That’s a big increase from the 245 million dollar impact in 2020. Brewers Guild executive director Noreen Otto says the industry is growing and maturing. “We now have breweries operating in 82 different Iowa communities, and so you know you just see that sprinkling. We go coast to coast with Iowa breweries,” Otto says. “I think it’s also just the open community space that breweries become.” She says breweries have become multipurpose and multi-generational entertainment venues.

“They’re welcoming for so many different occasions both you know adults gathering, but I joke I’ve been to a book club at a brewery, I’ve been to a baby shower at a brewery, I’ve been to a P-T-A meeting at a brewery, and so they’re really becoming these important community gathering spaces,” she says. Otto says breweries have had to adapt after the pandemic hurt the ability of customers to stop by for a beer, and they have not fully recovered from that. “Retail continues to be difficult in a time of you know some economic pressure, but again I think breweries are rising to the occasion with more creative product lines more events in the spaces,” Otto says. She says there’s been changes in laws and regulations that have helped the industry grow.

“This last session we expanded the ability of a brewery to pour at a festival, which gives a little more of local flavor to these events around the state of Iowa that you see, especially all summer long,” Otto says. “And I think continuing to change the environment to be more supportive of craft brewing and allow more flexibility for the small business owners will help us to remain stable going forward.” The state has approximately 150 breweries with a workforce of around 72-hundred employees for direct operations and total employment throughout the supply chain of 14-thousand-448 jobs. Otto says there’s still room for more growth.

Inside an Iowa brewery. (photo from the IA Brewers Guild)

“The economic impact study projected continued growth, almost another nine percent increase in jobs are expecting and a projection of continued growth about 17 percent in total economic output,” Otto says. “I think we’re gonna see that, as we legislatively allow access to more markets for breweries as they continue to mature and continue to grow their product lines.” One of the recent areas of growth has been partnerships with colleges and universities to support the funding of Name Image and Likeness collectives. “It was really fun over about the last year year and a half to see so many partnerships both with, Iowa State and University of Iowa but also Drake, U-N-I and Central College, places like that,” she says. “looking to build both the brewery brands and the sports brands and, you know, kind of honors the legacy and the community surrounding their alumni.”

The Iowa Brewers Guild, the not-for-profit trade association of professional brewers of beer, cider and in Iowa.