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THE CONTRIBUTION MADE by BEER to the EUROPEAN ECONOMY -Full Report, European & Country Chapters

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THE CONTRIBUTION MADE by BEER to the EUROPEAN ECONOMY -Full Report, European & Country Chapters THE CONTRIBUTION MADE BY BEER TO THE EUROPEAN ECONOMY Employment, value added and tax -Full report, European & country chapters- Amsterdam, January 2006 Ernst & Young Netherlands Regioplan Policy Research Nieuwezijds Voorburgwal 35 1012 RD Amsterdam Tel.: 020 - 5315315 Fax : 020 - 6265199 The Contribution made by Beer to the European Economy The Contribution made by Beer to the European Economy LIST OF CONTENTS Preface ..............................................................................................................................1 Key messages on the economic impact of beer...................................................................3 1 High spin-off effects on employment...........................................................................5 2 Productivity and value added .......................................................................................9 3 Tax and excise revenues important to state finance ...................................................13 4 World market leaders, SMEs and microbreweries .....................................................15 5 Austria .......................................................................................................................17 6 Belgium ......................................................................................................................25 7 Cyprus .......................................................................................................................33 8 Czech Republic...........................................................................................................39 9 Denmark .....................................................................................................................47 10 Estonia .......................................................................................................................55 11 Finland .......................................................................................................................61 12 France .......................................................................................................................69 13 Germany .....................................................................................................................77 14 Greece .......................................................................................................................85 15 Hungary ......................................................................................................................91 16 Ireland .......................................................................................................................97 17 Italy .....................................................................................................................105 The Contribution made by Beer to the European Economy 18 Latvia .....................................................................................................................113 19 Lithuania...................................................................................................................119 20 Luxembourg .............................................................................................................125 21 The Netherlands........................................................................................................131 22 Poland .....................................................................................................................139 23 Portugal.....................................................................................................................147 24 Slovakia ....................................................................................................................155 25 Slovenia ....................................................................................................................163 26 Spain .....................................................................................................................169 27 Sweden .....................................................................................................................177 28 United Kingdom.......................................................................................................185 29 Bulgaria ....................................................................................................................193 30 Croatia .....................................................................................................................199 31 Romania....................................................................................................................205 32 Turkey .....................................................................................................................211 33 Norway .....................................................................................................................217 34 Switzerland...............................................................................................................225 Annex I: validation of results - methodology & data used .............................................231 Annex II: how most important variables are estimated...................................................233 Annex III: Glossary.........................................................................................................235 The Contribution made by Beer to the European Economy PREFACE The Brewers of Europe commissioned a study on the economic impact of the brewing sector. Ernst & Young have conducted this study in the period of April to December 2005 and we are proud to present herewith the main results. The economic impact of the brewing sector has been analysed and described at both the level of Europe as a whole and at the level of in- dividual countries. The study has focused on the 25 member states of the enlarged European Union (EU-25) and also on Norway, Switzerland, Croatia, Bulgaria, Romania and Turkey. In this, the full report, we present the results at both the European and the national level; for a summary of the main results at the European level we refer to the summary report on Europe. The economic impact of the brewing sector has been described in terms of employment due to the production and sale of beer, the contribution to the European economy in terms of va- lue added and in terms of tax revenues collected by national governments. In the study we have distinguished between the direct and indirect impacts of the brewing sector, with the lat- ter describing both the impact on supply sectors to the brewing sector and the impact of the sale of beer on the retail and hospitality sectors. The report therefore gives some measure of the contribution that the brewing sector is making to the EU’s aims, within the Lisbon Strategy, of ensuring a more dynamic and stronger EU economy in the future. Conducting this study at the scale of Europe has only been possible with the help of the na- tional associations for the brewing sector. Individual brewing companies have been an im- portant source of information as well and we would like to thank both national associations and brewing companies for their commitment to this study. Professor Carl Koopmans from the University of Amsterdam, Faculty of Economics, has also commented on the methodolo- gy used and we would like to thank him for sharing his knowledge on economic impact ana- lysis with us. The study has been conducted by a team of economic researchers from Regioplan Policy Re- search, subsidiary of Ernst & Young Netherlands, consisting of Marco Mosselman, Remco Meijer and Herbert ter Beek. Amsterdam, January 2006 Herbert ter Beek Project manager Regioplan Policy Research, Ernst & Young Netherlands [email protected] The Contribution made by Beer to the European Economy 1 The Contribution made by Beer to the European Economy 2 KEY MESSAGES ON THE ECONOMIC IMPACT OF BEER Europe’s brewing sector contributes substantially to productivity, employment and the Euro- pean economy’s competitiveness. The direct economic impact of the breweries constitutes only a small fraction of their total economic impact. The following are some key messages to illustrate the employment effect: • European breweries provide jobs for 164,000 employees, while 2.6 million jobs can be attributed to the brewing sector. • Each brewery job is matched by two jobs in the supplying sectors. Some 342,000 supply- sector employees owe their jobs to beer. • Sale of beer in the hospitality sector and through retailers generates considerable employ- ment: a total of 2.1 million jobs in pubs, restaurants and shops. Of these more than 1.9 million are in the hospitality sector. For the European Union (EU-25) it is estimated that of all those employed (194.4 million in 2004) around 1.2 percent owe their jobs directly or indirectly to the production and consump- tion of beer. The total employment effect of the brewing sector is then comparable to the to- tal employment of countries such as Slovakia, Finland or Denmark (2.2 to 2.6 million jobs). In terms of productivity and the value added impact of breweries: • The total contribution of the brewing sector to the European economy in terms of value added is 57.5 billion euros. • Some 21 percent of this is generated directly by the brewing sector (12 billion euros). Supply sectors (20 percent), hospitality sector (56 percent) and retail (3 percent) account for the rest. • The total production value of European breweries is 34 billion euros, generating
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