5% 4%
10%
81%
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 25% of all beer consumed in Germany in 2010
was sold by the hospitality sector (on-trade), which
means almost 22 million hectolitres was sold on-trade.
The average consumer price of beer in German
pubs and restaurants is estimated at 7,20 euro a
litre (including VAT), so that total consumer spending
on beer in the hospitality sector is 15,8 billion euro
(including VAT).
Net consumer spending on beer was thus estimated
as13.3 billion euro (using a 19% VAT rate).
With an average hospitality turnover of 32,097 euro
(excluding VAT) per person, this results in 414.100
hospitality sector jobs attributable to beer sales.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
Around 75% of total beer consumption (66 million
hectolitres) in Germany is beer sold by supermarkets
and other retail outlets.
With an average consumer price of 0.95 euro per litre
(including VAT), total retail consumer spending on beer
was estimated to be 6.3 billion euro. Total consumer
spending excluding VAT was thus 5.3 billion euro.
With turnover per employee estimated at 301,602 euro
(excluding VAT), this means 17.400 people owe their
jobs to retail beer sales.
Approximately 27,570 people were employed in German
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 51.000.
Around 414.100 jobs in the hospitality sector and 17,400
in the retail sector can be attributed to the sale of beer.
The total employment impact of the brewing sector is
therefore 510,100. Compared to 2008 this represents
a decrease of more than 11.000 jobs.
›
Graph 18.3. / Total employment because of beer :
510,100 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
116