120
0
1
2
3
4
5
Of which
exports
Production
0
100
200
300
400
500
600
3,9
0,3
Purchases
of supplies
Value added
Production
value (million €)
Million
hectolitres (hl)
358
1.900
0
500
1.000
1.500
2.000
0
100
200
300
400
600
500
700
Employment
Taxes, excise and social
security contributions (ssc)
brewing sector (million €)
70
406
117
Excise
VAT retail
VAT hospitality
Incomes taxes
and social
security
contributions
12
2 | Industry and market structure,
trends and developments
3 | Direct effect
of the brewing sector
Given its size, Greece is one of Europe’s smaller beer
markets, with total production in 2010 estimated to
be 3.9 million hectolitres.
The two large international companies (one of which
recently took control of the Mythos brewery) have together
a market share of 80%. Just three lagers (Heineken,
Amstel and Mythos) make up approximately 90% of beer
sold on the Greek market.
Greece features a high proportion of value sales through the
hospitality channel, where it accounts for around 62%. This
is partly due to the annual infux of tourists, who generate
a considerable proportion of on-trade sales. Moreover,
native Greeks tend to experiment with more expensive
imported beers when they go out, given that they do not
often consume such products at home, where wine is more
commonly drunk. Beer consumption has been increasing
annually until 2008. Since 2009 there has been a drop in
consumption, due to the fnancial crisis in Greece.
The recent economic crisis has caused a sharp escalation
of government defcits, which turned into a public debt
crisis in several countries, most notably in Greece.
Faced with the need to bring public debt under control,
governments were forced to raise revenues and lower their
expenditures. The Greek Government decisions lead to
substantial increases of beer excise duty rate in the last
two years.
The direct brewing sector economic impact covers more than
1,900 employees who together produce beer worth 478 million
euro. Compared to 2008 the production value has decreased.
›
Graph 19.1. / Direct effect
›
Source : Ernst & Young calculation (2011)
Another substantial direct effect of the brewing sector
concerns taxes and excises paid by beer brewers and
consumers. Excises account for 117 million euro and total
VAT income for the Greek government was estimated
at 476 million euro. Direct taxes and social security
contributions (ssc) paid by employees of the brewing
sector are 12 million euro.
Due to the economic crisis and a smaller production and
consumption of beer, the direct government revenues
were lower than calculated for the year 2008. The Greek
breweries together achieved an estimated 478 million
euro in turnover. About 76% of total turnover remins within
these companies as value-added (358 million euro).
The Contribution made by Beer to the European Economy
120