At a time when the U.S. government is ever more concerned about job creation, a resolution recently passed by the state Senate aims to create more jobs by studying the economic impact of breweries in Pennsylvania.
Sponsored by state Sen. David Argall, R-29, Senate Resolution 216 will examine the impact of breweries, with a focus on jobs, through the General Assembly's Legislative Budget and Finance Committee.
Argall said Sen. John Pippy, R-37, who chairs the committee that has oversight of the state Liquor Control Board and chairs the Legislative Budget and Finance Committee, was helpful in making sure that the resolution passed through the committee and then the floor unanimously.
"We are trying to maximize the number of jobs, and as the senator for America's oldest brewery, it's an important issue locally, but it really is a statewide issue as well," Argall said.
Argall said that while he mostly understands Yuengling's operations, he doesn't know what's happening in the other 66 counties in the state.
The closest brewery to Argall's district besides Yuengling is the Sam Adams Brewery located in Breinigsville, near Allentown.
Using Yuengling Brewery as an example, Argall said the committee will look at the big picture, such as where breweries buy their supplies, including bottle caps, bottles, hops, barley and water.
According to Beer Marketer's Insights, a magazine based in Suffern, N.Y., that tracks the beer industry, Yuengling is now America's largest independent beer-maker and sold 2.5 million barrels of beer in 2011.
David Casinelli, chief operating officer at Yuengling, said that while the brewery employs about 290 people, it also buys a multitude of goods and services.
"This is what the study is, to truly understand the full economic impact of the breweries and how they benefit the commonwealth," Casinelli said.
Casinelli said that the bottles Yuengling use come from Owens Illinois, which has a plant located in Brockport, Pa., and is "almost exclusive" to the Yuengling plants in Pottsville.
"That's a great example of how the local economy is surviving on the sales here in Pottsville," he said.
Other ways Yuengling has affected the economy is through its physical expansion, such as at the Mill Creek Avenue plant in Pottsville, using local contractors; using packaging materials from a manufacturer in Hazleton; yeast, a byproduct from brewing, is sold to Campbell's Soup in the Allentown market; and the spent grain from the brewing process is trucked by a local company to farms, where it's fed to livestock.
A driver for Felty Farms, Eric Leiby, said that he goes to the Yuengling Brewery on Mahantongo Street every day.
From there he takes two loads, or about 28 tons, of spent grain, which contains no alcohol, and trucks it to local and out-of-the-area dairy farms.
He said since the original brewery was built for horse and buggy, both trucks and the area where they pick up the spent grain had to be custom built.
"It's very helpful to the farmers and their cows," Leiby said.
He added that the spent grain is a cheaper source of feed for when farmers are short, if it's a bad year, plus it helps the cows produce more milk.
Instead of buying supplements, many farmers also just mix the spent grain in with their normal feed.
Richard Fryer, owner of Phil-Del Farm in New Ringgold, uses the spent grain as a source of protein for his dairy cows, and said that they like the texture and the moisture in it.
He said it's a good additive for the cow's feed, and that if he can get the spent grain, it helps his business, but if he can't get it - since there are other farms that want Yuengling's grain, even some out of state - it can create problems.
Fryer said there are microbes inside the cows' stomachs that help digest the feed. But every time the feed is changed, the microbes inside die, then whatever kind of feed it is replaced with needs a new microbe for digestion.
The changing of feed can also result in a twisted stomach.
"They make more milk on it and they like it," Fryer said. "There's other stuff you can give them but it's like Life cereal, if Mikey didn't eat it, the other two aren't going to eat either."
Fryer said he once tried spent grain from another brewery when he couldn't get Yuengling's, but his cows wouldn't eat it.
Beyond Yuengling
While larger breweries like Yuengling are affected by the Senate resolution, it also affects craft breweries like Victory Brewing Co. in Downingtown.
Victory, which recently turned 16 years old and is about 30 miles outside Philadelphia, sells beer in 29 states and produced more than 81,000 barrels in 2011.
Bill Covaleski, co-brewmaster and co-founder, said he is the president of the trade organization Brewers of Pennsylvania, which Casinelli from Yuengling is also part of. While their association could do the same study, Covaleski said with the Senate committee looking into the industry, it will be from an unbiased third party.
He said the committee will be tasked with how job growth in Pennsylvania could be promoted and will also review the state liquor code.
In regard to affecting other industries in Pennsylvania, Covaleski said Victory works to the greatest extent possible with manufacturers in the state, including purchasing all their six-pack carriers and corrugated shipping carts.
Victory also works with local watersheds, and a portion of every bottle of Watershed Pale Ale sold goes to stewardship organizations that protect, test and monitor the Brandywine Watershed.
Travel
According to both Argall and Covaleski, the study will also look into travel.
"I think at one point, Yuengling was telling me that it is the most visited site in Schuylkill County," Argall said. "Certainly down at Maroon's (Bar and Grill) in Pottsville, I will see people from outside the area who had just done the brewery tour, so they'll try to measure that."
One way Covaleski said the study could help affect the economy and jobs is if it reveals there is a logical trail of Pennsylvania brew pubs, then a Pennsylvania tourism agency may get on board and create specific promotional material.
These promotions could then bring additional tourists into the state and sell more things like hotel rooms and food at restaurants.
"I think the thing that is going to come out of this study is what it (the brewing industry) contributes to the economy," Covaleski said. "Who knows what this could eventually bring to Pennsylvania?"
Looking nationally
Paul Gatza, director of the Brewers Association headquartered in Boulder, Colo., said he thinks the study will show that brewers are employing many people and are in the process of adding even more.
The Brewers Association is an organization of brewers that aims to promote and protect small and independent American brewers, their craft beers and the community of brewing enthusiasts.
With more than 1,300 U.S. brewery members and 27,000 members of the American Homebrewers Association, it's also made up of members of the allied trade, beer wholesalers, individuals and other associate members.
"Hopefully it (the study) will educate representatives and state senators to help brewers make an argument of how important we are to the state," Gatza said.
Gatza said the association counts Pennsylvania as the second-most craft-brewed state in the country, brewing 1.5 million barrels per year.
Pennsylvania is tied with Wisconsin and trails behind California, he said.
Gatza said in addition to revealing information about the economy, the study could also show how breweries affect agriculture in Pennsylvania.
Although he's not aware of any in Pennsylvania currently, Gatza added there are hop and barley farms popping up all over the country. While at one time most hops were grown in New York, according to Gatza, there are now some in South Dakota, Maine and Colorado.
"There's a lot of brewing going on out there in Pennsylvania," Gatza said.
This story has been corrected from an earlier version which stated Victory Brewing Co. was located in Doylestown.