POLITICS
Data Dive: Does Legalization Hurt Beer Sales?
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We dug into beer sales and state alcohol tax figures in Colorado and Washington, the states with the longest record of adult-use cannabis sales. (Alcohol tax rates have remained the same over that period, so alcohol tax revenue is a good indicator of sales trends.) The result? Alcohol sales tax revenue has grown steadily over the past several years, before and after cannabis became legal for adult use. Here’s what it looks like in a single image:
In Washington State, tax revenue from beer, wine, and hard alcohol sales has increased steadily over the past three years. Beer tax revenue went from $29.9 million in 2014, to $30.7 million in 2015, and has increased to $31.4 million so far in 2016.
In Colorado, alcohol sales tax revenue has grown steadily since 2011. In the two years prior to cannabis legalization, tax revenue increased at a steady rate, from $38.9 million to $40.1 million. Then, in 2014, the state’s total net tax receipts for all forms of alcohol grew to $40.9 million. In 2015, net alcohol revenue increased to $41.8 million.
In Oregon, the data is limited. But it, too, shows a steady gain in beer production and sales. Adult-use cannabis went on sale in Oregon in October 2015. During June 2015, Oregon brewers produced and sold 54,272 barrels of beer. Nearly one year later, in June 2016, the number of barrels sold increased to 62,800. That’s market growth of 15 percent. Most industries would call that a banner year.
So alcohol sales—and specifically beer sales—have continued to steadily increase in states that have legalized the adult use of cannabis.
In fact, that increase in alcohol sales in adult-use states bucks the national trend for alcohol, with sales flat to slightly down. According to tax revenue data from the U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau, alcohol sales brought in $10.1 billion in tax revenue nationwide in 2012. That figure dipped to $10.0 billion in 2013, rose to $10.4 billion in 2014, and held steady in 2015.
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