426
0
1
2
3
4
5
Of which
exports
Production
0
100
200
300
400
600
500
700
800
4,2
Purchases
of supplies
Value added
Production
value (million €)
Million
hectolitres (hl)
0,2
243
2.500
0
500
1.000
1.500
2.000
2.500
3.000
0
200
400
600
1.000
800
1.200
Employment
Taxes, excise and social
security contributions (ssc)
brewing sector (million €)
278
154
528
Excise
VAT retail
VAT hospitality
Incomes taxes
and social
security
contributions
58
2 | Market structure, trends
and developments
3 | Direct effect
of the brewing sector
In Finland there are three large brewing companies, which
have market shares of approximately 44.27 and 19%
respectively.
5
Besides these three large players, there are
approximately 22 small breweries and microbreweries.
The production in 2010 of the companies that are member
of the brewers association was approximately 4.24 million
hectolitres of which a volume of 0.20 million hectolitres was
exported. The main export markets are Estonia, Sweden
and Russia. Compared to 2008, the production has
increased by 0.09 million hectolitres. The largest Finnish
brewers also produce soft drinks, long drinks, cider and
mineral water. Since January 2011, an increase in the tax
on soft drinks has affected these Finnish brewers.
The market for alcoholic beverages is highly regulated in
Finland. The most important example of this is the high level
of excise rates on beer. In anticipation of European Union
membership of neighbouring country Estonia, the excise
rate was lowered by 32% in 2004. But at the beginning
of 2008, the Finnish Government decided to modify
taxation on fermented alcoholic beverages once again and
increased it by 10%. The excise on a litre of beer (at 5%
alcohol) has been set at 1.38 euro, reaching the highest
level in the European Union (in 2008, the excise was 1.15
euro). Because of this high taxation, the selling price of
beer in Finland is rather high compared to neighbouring
countries, resulting in private imports from these countries.
Because of the high excise rates in Finland and competition
by private exports in particular from the Estonian market,
the margins on beer are under pressure.
Although the excise rates and the selling price of beer
are rather high in Finland, consumption per capita is above
the European average (approximately 89 litres per capita).
Finnish beer consumption has declined slightly in recent
years. Total beer consumption in Finland in 2010 amounted
to 4.63 million hectolitres, of which 0.662
6
million hectolitres
was imported. Their main import markets are Germany,
Estonia en Czech Republic.
As shown in the table above, the number of operators
(microbreweries) has increased in recent years by
almost 40%.
Another important development is a discussion
on an advertising ban for alcoholic beverages.
Since Finnish brewers also produce mineral water and soft
drinks direct effects only for the brewing sector are not easily
available. Beer constitutes approximately 50% of the volume
produced by the members of the Finnish Federation of the
Brewing and Soft Drinks Industry (Panimoliitto). The number
of employees of these members is around 2,500.
We calculated the production value of the brewing sector
arising from manufacturing beer was 721 million euro
in 2010, of which 262 million euro was value-added.
The aforementioned direct effects are higher than measured
in 2008.
5
Source : Canadean Ltd : Global Beer Trends, 2010.
6
Source : Questionnaire 2011
›
Graph 16.1. / Direct effect of the beer sector
›
Source : Ernst & Young calculation (2011)
The Contribution made by Beer to the European Economy
102