Liquor Sales Boost State Economy - Find Out How

The Perryman Group (TPG) was recently asked to examine the overall effects of the alcoholic beverages industry on business activity in the state of Texas. Read their findings.

 
 

The Perryman Report

Alcoholic beverage sales in Texas are governed by a complex set of local laws dividing various regions into either “wet,” where alcoholic beverage sales are permitted, or “dry,” where they are not. This system has evolved over many decades, and local elections to change the status (almost exclusively from dry to wet or to expand options) are quite common.

A key issue in such elections is the likely effect on the economy and local tax receipts. The economic and fiscal implications of wet/dry status are notable.


Sales Figures

The Bottom Line: Clearly, sales of distilled spirits and other alcoholic beverages are a sizable source of economic activity. The industry also generates significant tax receipts.


Perryman Report Highlights

  • The Perryman Group found that retail sales in wet regions are higher than in dry locales (after adjusting for other factors such as income).
     
  • By measuring the economic impact of the alcoholic beverage and distilled spirits segments on a representative community, it is possible to approximate not only the current effects, but also the likely gains if such a locale elected to change from dry to wet.