2%
86%
9%
3%
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 55% of all beer consumed in Luxembourg is sold
by the hospitality sector (on-trade), which means almost
0.17 million hectolitres is sold on-trade.
The average consumer price of beer in Luxembourg
pubs and restaurants is estimated at 6.00 euro a
litre (including VAT), so that total consumer spending
on beer in the hospitality sector is 104.6 million euro
(including VAT).
Net consumer spending on beer is thus estimated
at 91.0 million euro (using a 15% VAT tariff).
With an average hospitality turnover of 68,600 euro
(excluding VAT) per person, this results in 1,326
hospitality sector jobs attributable to beer sales.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
Around 45% of total beer consumption (0.14 million
hectolitres) in Luxembourg is beer sold by supermarkets
and other retail outlets.
With an average consumer price of 1.90 euro per
litre (including VAT), total retail consumer spending on
beer is estimated at 27.1 million euro. Total consumer
spending excluding VAT is thus 23.6 million euro.
With turnover per employee estimated at 724,200 euro
(excluding VAT), this means 33 people owe their jobs
to retail beer sales.
In 2010, approximately 140 people were employed in
breweries in Luxembourg.. Employment in supplying
sectors amounted to 37 people arising from the brewing
sector.
Around 1,326 jobs in the hospitality sector and 33 jobs
in the retail sector can be attributed to the sale of beer.
The total employment impact due to beer production
and sales in Luxembourg is therefore around 1,500.
The employment impact of the brewing sector is
presented below:
›
Graph 25.3. / Total employment because of beer : 1,536 jobs
›
Source : Ernst & Young calculation (2011)
(see Annex III for an explanation of the methodology).
6 | Total employment due to beer
The Contribution made by Beer to the European Economy
160