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Source : Irish Brewers Association.
The analysis shows that 64% of the economic impact
of the Irish brewing sector on suppliers in terms of
employment is concentrated in agriculture. Compared
with other European countries this is rather high.
There are three explanations for this :
Approximately 21.5% of the total amount spent
by brewing companies is on agricultural goods.
This is slightly higher than in other European countries.
The major quantities (76%) of hops and malt are
purchased domestically, whereas a large part of the
money spent by brewing companies in other supplying
sectors is for purchases abroad.
The average labour productivity in most sectors in Ireland
grew explosively in recent years. In agriculture the turnover
per employee remained relatively low. Due to this, a million
euro spend by brewing companies in the Irish agricultural
sector generates more jobs than a million euro spent in
another sector.
5 | Induced effects
of the brewing sector
Pubs are the dominant outlet channel for beer in Ireland,
but in recent years beer sales in the hospitality sector have
decreased. In 2006 over 80% of the beer was sold in the
on-trade.
Hospitality sector
Employment arising from beer sales in the hospitality
sector has been estimated to be 35.694 jobs :
Of the total beer consumption in Ireland approximately
66% is in the hospitality sector.
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This means almost 3.2 million hectolitres were sold
by Irish pubs, restaurants and the like.
The average consumer price of beer in Irish pubs and
restaurants is 7.67 euro a litre (including VAT), so that
total consumer spending on beer in the hospitality
sector is 2.4 billion euro (including VAT).
Net consumer spending on beer was thus estimated
at 2.0 billion euro (using a 21% VAT rate).
With an average hospitality turnover of 56,424 euro
(excluding VAT) per person, this results in 35,690
hospitality sector jobs attributable to beer sales.
Retail
The employment effect of the brewing sector
in the retail sector can be similarly assessed :
The share of the retail sector in total beer sales is about
34% (1.6 million hectolitres).
With an average consumer price of 3.54 euro per
litre (including VAT), total retail consumer spending on
beer is estimated at 579 million euro. Total consumer
spending excluding VAT was thus 479 million euro.
Because turnover per employee is estimated at 314,265
euro, this means 1,520 people working in the retail
sector owe their jobs to the brewing sector.
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Ireland