348
0
1
2
3
4
5
6
Of which
exports
Production
0
100
200
300
400
500
6
0
Purchases
of supplies
Value added
Production
value (million €)
Million
hectolitres (hl)
99
2.011
0
500
1.000
1.500
2.000
2.500
0
50
100
150
200
300
350
250
400
Employment
Taxes, excise and social
security contributions (ssc)
brewing sector (million €)
83
97
139
Excise
VAT retail
VAT hospitality
Incomes taxes
and social
security
contributions
19
2 | Market structure, trends
and developments
3 | Direct effect
of the brewing sector
Although Hungary might be better known as a wine-
producing country, it has a signifcant history of commercial
beer production. The frst commercial brewery in Hungary
was established in 1845 (by Peter Schmidt), followed shortly
by other breweries, some of which are still active today. In
2010 breweries in total produced 6.30 million hectolitres of
beer. Beer consumption in the same year was 6.1 million
hectolitres. This means a steady decline in beer production
and consumption. In 2008 total production was 7.05 million
hectolitres, consumption was 7.1 million hectolitres.
There are three main players in the Hungarian beer
market.
25
Together they have a market share of almost
80%. All three have been acquired by major multinational
brewing companies. The fourth player is owned by an
Austrian brewing company. Besides these four main
brewing companies, there are some 50 micro breweries
active in Hungary.
26
The economic impact of the brewing sector is
infuenced by the following trends, developments
and characteristics of the Hungarian economy
27
:
Due to changes in legislation (eco-tax laws, excise
increases) and the general economic impact on
consumption, beer consumption has been decreasing
in recent years.
Consumption per capita has fallen signifcantly. In the
1980’s it was 100 litres per capita, in 2007 it was down
to 73 litres. Currently it is even lower at 61 litres per
capita. The main causes are the effects of the fnancial
crises that have signifcantly reduced buying power.
The Hungarian brewing sector also has to deal with other
negative factors; there was an increase in beer excise
duty of 10% in January 2010 following a 6.5% increase
on 1 July 2009. Also VAT increased in 2010 by 2.5%.
These developments have had an adverse effect on
consumption.
Despite the decline in consumption, tax revenues
for the State were higher in 2010 than in 2008 due to
the increases in excise and VAT rates.
On top of the volume decline, the share of less expensive
brands has been increasing. This trend continued in 2010.
The four large brewers slightly decreased their premium
and mainstream share within the total market.
Due to the eco-tax law change from 1 January 2009,
imported beer enjoys a favourable position compared
with domestic production. Beer is mainly imported from
Germany, Poland and the Czech Republic.
Hungarian breweries in total produce slightly more than
6.3 million hectolitres of beer with a value of 447 million
euro. They employ more than 2,000 people. Compared
to 2008, the total value decreased by 10.6%.
25
National Brewers’ Association of Hungary, Magyar Sörgyártók Szövetsége, 2010.
26
National Brewers’ Association of Hungary, Magyar Sörgyártók Szövetsége, 2010.
27
National Brewers’ Association of Hungary, Magyar Sörgyártók Szövetsége, 2009.
›
Graph 20.1. / 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. In 2010 excises reached 178 million euro
and total VAT income for the Hungarian government was
estimated at 180 million euro. Personal direct taxes, social
security contributions and payroll taxes paid by employees
and employers in the brewing sector add up to another 20
million euro.
The Contribution made by Beer to the European Economy
126