18%
28%
16%
38%
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 9% of all beer consumed in Lithuania is sold by
the hospitality sector (on-trade), which means almost
0.3 million hectolitres is sold on-trade.
The average consumer price of beer in Lithuanian
pubs and restaurants is estimated at 2.59 euro a litre
(including VAT), so that total consumer spending on
beer in the hospitality sector is around 68 million euro
(including VAT).
Net consumer spending on beer is thus estimated at 56
million euro (using a 21% VAT rate).
With an average hospitality turnover of 15,317 euro
(excluding VAT) per person, this results in 3,678
hospitality sector jobs attributable to beer sales. In 2008
we calculated 4,800 hospitality jobs due to beer.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
Around 91% of total beer consumption (2.7 million
hectolitres) in Lithuania is beer sold by supermarkets
and other retail outlets.
With an average consumer price of 1.09 euro per
litre (including VAT), total retail consumer spending on
beer is estimated at 290 million euro. Total consumer
spending excluding VAT is thus 241 million euro.
With turnover per employee estimated at 102,010 euro
(excluding VAT), this means around 2,350 people owe
their jobs to retail beer sales. In 2008 we calculated
3,300 retail jobs jobs due to beer.
Direct employment by Lithuanian breweries is estimated
to be 2,000 jobs. As a result of purchases of services and
goods needed for the production and sale of beer, there
are also almost 4,960 jobs generated in the supplying
sectors due to beer. Downstream, the impact on the
hospitality and retail sectors is also significant. More than
6,000 jobs are generated in these sectors because of the
sale of beer. Of these 6,000 jobs the majority (3,680) are
created in the hospitality sector. In 2010, total employment
due to beer amounted to almost 13,000. In 2008, we
calculated that due to beer 15,600 jobs were created in
Lithuania.
›
Graph 24.3. / Total employment because of beer : 12,985 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.
The Contribution made by Beer to the European Economy
154