7%
53%
7%
33%
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 38% of all beer consumed in Hungary is sold
in the hospitality sector (on-trade), which means almost
2.3 million hectolitres is sold on-trade.
The average consumer price of beer in Hungarian
pubs and restaurants is estimated at 2.09 euro per
litre (including VAT)
28
, so that total consumer spending
on beer in the hospitality sector is 484 million euro
(including VAT).
Net consumer spending on beer is thus estimated
to be 388 million euro (using a 25% VAT rate).
With an average hospitality turnover of 25.900 euro
(excluding VAT) per person, this results in almost
15.000 hospitality sector jobs attributable to beer sales.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
Around 62% of total beer consumption (3.8 million
hectolitres) in Hungary is as beer sold by supermarkets
and other retail outlets.
With an average consumer price of 1.10 euro per litre
(including VAT)
29
, total retail consumer spending on
beer is estimated at 416 million euro. Total consumer
spending excluding VAT is thus 332.8 million euro.
With turnover per employee estimated at 170,700 euro
(excluding VAT), this means 1,950 people owe their jobs
to retail beer sales.
Approximately 2,000 people were employed in the
Hungarian breweries in 2010. Employment in supplying
sectors is important with a total numbers employed in
these sectors arising from the brewing sector around
9,400. Around 15,000 in the hospitality sector and 1,950
jobs in the retail sector can be attributed to the sale of
beer. The total employment impact due to beer production
and sales in Hungary is therefore 28,293 jobs. Compared
to 2008, this represents a decrease of around 5,500 jobs.
›
Graph 20.3. / Total employment because of beer : 28,293 jobs
›
Source : Ernst & Young calculation (2011)
(see Annex III for an explanation of the methodology).
6 | Total employment due to beer
28
National Brewers’ Association of Hungary, Magyar Sörgyártók Szövetsége, 2010.
29
National Brewers’ Association of Hungary, Magyar Sörgyártók Szövetsége, 2010.
The Contribution made by Beer to the European Economy
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