Oregon is home to 400 breweries, 1,000 wineries, 1,300 vineyards, 70 cideries, 65 distilleries, 73 distributors and 10,000 restaurants, creating hundreds of thousands of good-paying jobs and several billion dollars in wages. With the highest cost increases in generations, tax increases would only make it harder for these local businesses to invest in hiring, equipment upgrades and expansion.
Oregon brewers help create 40,000 jobs, $2 billion in wages each year and contribute $6.5 billion in economic activity for the state. Unfortunately, 3,000 beer-related jobs were lost because of COVID-19 closures and restrictions and dozens of our local brewers shuttered. And now inflation and supply chain issues are increasing the costs of key beer ingredients, such as malt, barley, corn, aluminum cans and kegs, making it one of the hardest times to do business.
Oregon is home to 1,000 wineries and 1,300 vineyards, which support the livelihoods of more than 28,000 Oregonians and generates more than $1 billion in wages. Sadly, that number is down from 40,000 before the pandemic, meaning 12,000 wine-related jobs were lost last year. Natural disasters, such as extreme heat, cold and wildfires, and employee shortages are adding to the challenges Oregon wineries face.
Like most other goods, prices are skyrocketing for Oregon’s 70 cideries, which report an 100% increase in fruit juice prices this past year. Supply chain issues around aluminum cans and steel kegs are also presenting challenges. And this inflation is coming on the heels of a two-year pandemic that forced 81% of Oregon’s cideries to close their tasting rooms and lay off workers.
Oregon is home to 65 distilleries supporting 18,000 jobs and generating $1.6 billion for the state. Oregon distillers reported a 30% reduction in sales due to COVID-19, and while they’re trying to recover from a two-year pandemic, the glass they sell their products in is becoming harder to obtain. Manufacturers are reporting long lead times, making the planning process harder for spirits producers. Oregon’s spirits tax is already 2nd highest in the country. The last thing these homegrown businesses need is a tax increase.