14%
16%
25%
45%
Direct effect (breweries)
Indirect effect (suppliers)
Hospitality industry
Retail
5 | Induced effects of the brewing sector
Hospitality sector
The economic impact of breweries on the hospitality
sector is assessed as follows :
About 15.4% of all beer consumed in Finland is sold
by the hospitality sector (on-trade). In 2008 17.2%
of the beer was consumed in the on trade.
The average consumer price of beer in Finnish pubs
and restaurants is estimated at 11.6 euro a litre
(including VAT), so that total consumer spending
on beer in the hospitality sector is around 673 million
euro (excluding VAT).
With an average hospitality turnover of 86,360 euro
(excluding VAT) per person
10
, this results in 7,770
hospitality sector jobs attributable to beer sales.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
Around 84.6% of total beer consumption
(almost 4 million hectolitres) in Finland is sold by
supermarkets and other retail outlets.
With an average consumer price of 3.79 euro per litre
(including VAT), total retail consumer spending on beer
is estimated at 1.5 billion euro. Total consumer spending
excluding VAT is thus 1.2 billion euro.
With turnover per employee estimated at 429,000 euro
(excluding VAT), this means 2,800 people owe their jobs
to retail beer sales.
Approximately 2,500 people were employed in Finnish
breweries in 2010. The employment in supply sectors due
to the production and sale of beer amounted to 4,300
jobs. 7,770 jobs in the hospitality sector and 2,800 jobs in
the retail sector can be attributed to the sale of beer. The
total employment impact due to beer production and sales
in Finland is therefore 17,400 jobs. Compared to 2008,
this represents a decrease of 109 jobs.
›
Graph 16.3. / Total employment because of beer : 17.400 jobs
›
Source : Ernst & Young calculation (2011)
(see Annex III for an explanation of the methodology).
6 | Total employment due to beer
10
Source : Eurostat, 2006.
The Contribution made by Beer to the European Economy
104