6%
8%
16%
70%
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 :
Approximately 24% of all beer consumed in France is
sold by the hospitality sector (on-trade), which means
4.7 million hectolitres is sold on-trade.
The average consumer price of beer in French pubs
and restaurants is 10.08 euro a litre (including VAT), so
that total consumer spending on beer in the hospitality
sector is 4.8 billion euro (including VAT).
Net consumer spending on beer is thus estimated
at 4.0 billion euro (using a 20% VAT rate).
With an average hospitality turnover of 86,600 euro
(excluding VAT) per person, this results in 46,100
hospitality sector jobs attributable to beer sales.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
Approximately 76% of total beer consumption
(15 million hectolitres) in France is beer sold by
supermarkets and other retail outlets.
With an average consumer price of 1.49 euro per litre
(including VAT), total retail consumer spending on beer
is estimated at 2.2 billion euro. Total consumer spending
excluding VAT is thus 1.9 billion euro.
With turnover per employee estimated at 358,300 euro
(excluding VAT), this means 5,200 people owe their jobs
to retail beer sales.
Approximately 3,600 people were employed in French
breweries in 2010. Employment in supplying sectors is
very important with a total number employed in these
sectors arising from the brewing sector of around 10,500.
Around 46,100 jobs in the hospitality sector and 5,200
jobs in the retail sector can be attributed to the sale of
beer. The total employment impact due to beer production
and sales in France is therefore 65,400 jobs. Compared to
2008, this represents a decrease of 6000 jobs.
›
Graph 17.3. / Total employment because of beer : 65,400 jobs
›
Source : Ernst & Young calculation (2011)
(see Annex III for an explanation of the methodology).
6 | Total employment due to beer
The Contribution made by Beer to the European Economy
110