After the passing of the so-called "Surly Bill" in 2011, the Beverage Manufacturing industry took flight throughout Minnesota, and especially in Northeast. While there was Beverage Manufacturing employment prior to the passage of the bill, it did not rise above 42 jobs between 2000 and 2013. However, after 2015, the number of jobs in the industry rose rapidly (see Figure 1).

By 2019, there were nearly ten times as many jobs in the industry in the region as breweries, cideries, wineries, and distilleries continued to open and expand. From 2000 to 2010, there was an average of five Beverage Manufacturing establishments, with an average of five jobs at each site. From 2013 on, the number of establishments jumped up to an average of 12 with an average size of 18 workers. In 2022, the region reached a new peak for the number of establishments (15) as well as the number of jobs (322).

Compared to the other economic development regions in the state, Beverage Manufacturing is fourth most concentrated in Northeast. The relatively high employment of the industry in the region means that Beverage Manufacturing is 1.4 times more concentrated than it is statewide. The industry was most highly concentrated in Region 7W – Central, which had almost three times the concentration of the state. Southern Minnesota, on the other hand, still has some fermenting to do to catch up to the rest of the state (see Figure 2).

In total, the Beverage Manufacturing industry in Northeast Minnesota paid out over $11.5 million in wages in 2022. The average wage for Beverage Manufacturing employees was $35,828, which was just over half the average wage for all Manufacturing ($68,484) and about 65% of the annual average ($54,652) in the region. Of the 17-odd Manufacturing industries in the region, only Apparel Manufacturing paid lower average wages ($31,304).

One reason behind the lower-than-average Beverage Manufacturing wages is that a significant portion of employment is serving related. Many establishments in the industry, in addition to producing beer, cider, wine, or liquor, also sell it on-site in taprooms and tasting rooms. As a result, Waiters & Waitresses and Bartenders are the two most common occupations in the industry, accounting for about a quarter of all jobs. In 2023 the median wages for Waiters & Waitresses in region was $11.25 per hour. The median wage for Bartenders was only slightly higher at $11.73 per hour.

As more evidence, the statewide average industry wage declined after peaking in 2011, when employment still consisted largely of production workers. Wages are also likely to be lower as many Beverage Manufacturers are small businesses. The average number of jobs per establishment just recently surpassed 20, but is yet to reach the Manufacturing supersector average of nearly 26.

The good news is that wage growth, despite the current relatively low wages, has been strong. Since 2019 the average wage grew almost 24% in Beverage Manufacturing, outpacing wage growth in the Manufacturing supersector overall (+11%) as well as the total of all industries (+17%) combined. However, wage growth slowed considerably – down to 2.8% – over the latest annual period (2021-2022), trailing the all-Manufacturing (+3.2%) and all-industry (+4.7%) averages.

As one might expect with a newly burgeoning industry, the workforce itself is also relatively young. As of 2022, 71.6% of Beverage Manufacturing workers were under 45 years old (see Figure 3). This is a high share, and even more notable given that in Minnesota, the legal age to serve alcohol is 18, limiting the number of younger workers in key occupations in the industry.

There are also fewer older workers in the industry. Only 14.3% of jobs in Beverage Manufacturing were held by workers over the age of 54. That is lower than both the Manufacturing sector's share (25.1%) and the all-industry (24%) share, and reflects the prevalence of serving occupations that skew younger.

Beverage Manufacturing has been one of the fastest growing industries in the region over the last decade. Brewery, cidery, winery, and distillery employment rebounded quickly from the pandemic and surpassed pre-pandemic levels in under a year. Such a robust recovery points to continued consumer thirst and growth in a dynamic industry that has done well to tie into the regional tourism efforts. Cheers to that!

For More Information

Contact Carson Gorecki, Labor Market Analyst, at carson.gorecki@state.mn.us.