Beer, Wine, Cider and Spirits Have Been Hardest Hit

PORTLAND, Ore. — Today’s Oregon Economic Forecast showed the state has more revenue than previously predicted while the leisure and hospitality sector continues to struggle to recover from the pandemic.

“Oregon’s breweries, wineries, cideries, distilleries, restaurants, bars and hospitality sector are facing major challenges. Between inflation on the cost of ingredients, supply chain issues, employee shortages, natural disasters and a two-year pandemic, these local businesses need the support of lawmakers and the public to survive. The last thing any local business needs are the tax increases,” said the Oregon Beverage Alliance.

According to the executive summary, the Oregon Revenue Forecast increased by nearly $1.9 billion, largely because of the new Corporate Activity Tax, paid by businesses including breweries, wineries, cideries and distilleries. And it noted rising inflation also increased the state’s revenue from alcohol sales. Alcohol is the third largest source of revenue for the state. 

Oregon is home to 400 breweries, 1,000 wineries, 1,400 vineyards, 70 cideries, 100 distilleries, 73 distributors and 10,000 restaurants, creating hundreds of thousands of good-paying jobs and more than $14 billion in economic activity for the state. With the highest cost increases in generations, tax increases would only make it harder for these local businesses to invest in hiring and expansion.

While Oregon House Bill 3312 – a more than 1200% tax increase proposal – died this legislative session, the Oregon Liquor and Cannabis Commission is considering doubling its bottle surcharge on spirits from $0.50 to $1, which will harm spirits producers, bars and restaurants, when they’re still struggling to recover as the economic forecast makes clear. The OLCC will likely make its decision next month.


About the Oregon Beverage Alliance

The Oregon Beverage Alliance is made up of local brewers, winemakers, cidermakers, distillers and their supply and hospitality partners creating hundreds of thousands of jobs. Learn more: