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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 62% of all beer consumed in Greece is sold by
the hospitality sector (on-trade), which means almost
2.5 million hectolitres is sold on-trade.
The average consumer price of beer in Greek pubs and
restaurants is estimated at 8.56 euro a litre (including
VAT), so that total consumer spending on beer in the
hospitality sector is 2.2 billion euro (including VAT).
Net consumer spending on beer is thus estimated
at 1.8 billion euro (using a 23% VAT tariff).
With an average hospitality turnover of 31,200 euro
(excluding VAT) per person, this results in 54,400
hospitality sector jobs attributable to beer sales.
Compared to 2008 there are 10,000 jobs less due
to beer in the hospitality.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
Around 38% of total beer consumption (2.4 million
hectolitres) in Greece is beer sold by supermarkets
and other retail outlets.
With an average consumer price of 2.41 euro per
litre (including VAT), total retail consumer spending on
beer is estimated at 375 million euro. Total consumer
spending excluding VAT is thus 289 million euro.
With turnover per employee estimated at 161,700 euro
(excluding VAT), this means 1,800 people owe their jobs
to retail beer sales. Compared to 2008 the job loss
in the retail is 100.
In 2010, Greek breweries employed 1,900 people.
Besides this direct employment, the brewing sector
generates important indirect effects within supply sectors.
It is estimated that 1,430 supply industry jobs can be
attributed to the brewing sector (beer sales). Downstream,
the hospitality and retail sectors benefit through their beer
sales. Around 54,400 jobs in the hospitality sector can
be attributed to beer, while in retail some 1,800 people
owe their jobs to beer sales. The total employment impact
is thus 59,600 jobs. This is a decline in employment in
comparison to 2008, when the employment impact of
the brewing sector was 70,400.
Graph 19.3. / Total employment because of beer : 59,600 jobs
Source : Ernst & Young calculation (2011)
6 | Total employment due to beer
The Contribution made by Beer to the European Economy
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