17%
63%
16%
4% Direct effect (breweries)
Indirect effect (suppliers)
Hospitality industry
Retail
5 | Induced effects of the brewing sector
Hospitality sector
The economic impact of the breweries on
the hospitality sector is assessed as follows :
About 25% of all beer consumed in Norway is sold by
the hospitality sector (on-trade), which means 608,707
hectolitres is sold on-trade.
The average consumer price of beer in Norwegian
pubs and restaurants is estimated at 16.5 euro a litre
(including VAT), so that total consumer spending on
beer in the hospitality sector is almost 1 billion euro
(including VAT).
Net consumer spending on beer is thus estimated
at 800 million euro (using a 25% VAT tariff).
With an average hospitality turnover of 78,362 euro
(excluding VAT) per person, this results in 10,300
hospitality sector jobs attributable to beer sales.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
About 75% of total beer consumption (1.8 million
hectolitres) in Norway is beer sold by supermarkets,
wholesale and other retail outlets.
With an average consumer price of 7.6 euro per litre
(including VAT), total retail consumer spending on beer
is estimated at 1.4 billion euro.
Total consumer spending excluding VAT is thus 1.2
billion euro.
With turnover per employee estimated at 427,000 euro
(excluding VAT), this means around 2,700 people owe
their jobs to retail beer sales.
Approximately 2,560 persons are employed at the
Norwegian breweries. 700 jobs created in the supplying
sector. Some 10,300 jobs are created in the hospitality
sector and 2,700 jobs in wholesale and retail due to sales
of beer. The total employment is more than 16,200 jobs.
›
Graph 28.3. / Total employment because of beer :16,200 jobs
›
Source : Ernst & Young calculations
6 | Total employment
due to beer
181
28
Norway