132
0
0,5
1
2,5
1,5
2
3
Of which
exports
Production
0
50
100
150
200
250
3
Purchases
of supplies
Value added
Production
value (million €)
Million
hectolitres (hl)
76
0,3
2.000
0
500
1.000
2.500
2.000
1.500
0
20
40
60
80
100
120
140
Employment
Taxes, excise and social
security contributions (ssc)
brewing sector (million €)
12
50
44
Excise
VAT retail
VAT hospitality
Incomes taxes
and social
security
contributions
9
2 | Market structure, trends
and developments
3 | Direct effect
of the brewing sector
In 2010, 2.9 million hectolitres of beer was produced by
42 breweries based in Lithuania. The major part of this
volume was produced by ten larger breweries.
Beer has always been a popular product in Lithuania.
The frst brewery was established in 1784 and became
a leading brewery in Lithuania. The two leading breweries
merged in 2001 and their market share was estimated
at 44% in 2010. A large international brewery acquired
all the shares of the leading brewery in 2008. The second
brewery is Royal Unibrew with a market share of 21%.
Although domestically brewed beer is still most popular in
Lithuania, imported beers are gaining in popularity. Until 2003
only 2% of the beer consumption was imported. Since 2005
it has risen to a level of 10% of the consumption.
The economic impact of the brewing sector is
infuenced by the following trends, developments and
characteristics of the Lithuanian beer market and the
brewing sector :
Imported beers are gaining in popularity.
Beer has always been a popular drink in Lithuania,
although per capita beer consumption is decreasing.
The majority (91%) of beer sales are in the retail (off-
trade) sector.
Lithuanian brewers produced an estimated 2.9 million
hectolitres in 2010. Exports of Lithuanian beer are
growing. In 2010 11% of this beer was exported
compared with 5% in 2008.
Other developments which infuence the economic
impact of the brewing sector are :
In 2004, Lithuania entered the EU.
In 2008, Lithuania joined the Schengen area opening up
greater possibilities for free movement for its people.
Lithuania is the largest tourism market in the Baltic States.
On 1 January 2007, a total ban on public smoking
came into effect. This meant that smoking was no
longer allowed in public hospitality establishments such
as cafés, bars, clubs and restaurants.
There are plans for a total ban on alcohol advertising,
including beer.
Lithuanian breweries produced 2.9 million hectolitres of
beer in 2010. This production had a value of 208 million
euro. Of this production value, 132 million euro was
spent on purchases of goods and services needed for
the production and sale of beer. The other 76 million
euro stayed within the brewing sector as value-added.
Lithuanian breweries provide 2,000 jobs. All the economic
indicators are comparable with the year 2008.
3
National Brewers’ Association of Lithuania, Lietuvos Aludarių Gildija, 2008
4
Source : Švyturys brewery. http ://www.svyturys.lt/en/main/info/about/history.
5
Carlsberg, www.carlsberg.com
6
Source : Canadean, Global Beer Trends (2008) Country Profle – Lithuania and National Brewers’ Association of Lithuania, Lietuvos Aludarių Gildija (2008).
7
Canadean, Global Beer Trends 2008, Country Profle – Lithuania; National Brewers’ Association of Lithuania, Lietuvos Aludarių Gildija, 2008; www.svyturys.lt
8
Lithuanian Development Agency, Tourism in Lithuania, 2008; website of the European Commission ec.europa.eu; Euromonitor, Tobacco in Lithuania, 2008.
›
Graph 24.1. / Direct effects of the brewing sector
›
Source : Ernst & Young calculation (2011)
The Contribution made by Beer to the European Economy
152