2%
88%
6%
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 69% of all beer consumed in Portugal is sold by
the hospitality sector (on-trade), which means 4.1 million
hectolitres is sold on-trade.
The average consumer price of beer in Portuguese
pubs and restaurants is estimated at 6.6 euro a litre
(including VAT), so that total consumer spending on
beer in the hospitality sector is almost 2.7 billion euro
(including VAT).
Net consumer spending on beer is thus estimated at
2.2 billion euro (using a 21% VAT tariff).
With an average hospitality turnover of 33,694
(excluding VAT) per person, this results in 65,900
hospitality sector jobs attributable to beer sales.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
About 31% of total beer consumption (1.8 million
hectolitres) in Portugal is beer sold by supermarkets
and other retail outlets.
With an average consumer price of 1.7 euro per litre
(including VAT), total retail consumer spending on beer
is estimated at 315 million euro.
Total consumer spending excluding VAT is thus 260
million euro.
With turnover per employee estimated at 165,800 euro
(excluding VAT), this means around 1,600 people owe
their jobs to retail beer sales.
In 2010, approximately 3,200 persons were employed
in Portuguese breweries. An additional 4,400 jobs were
created in the supplying sector. Some 65,900 jobs were
created in the hospitality sector and 1,600 jobs in the
wholesale and retail due to sales of beer. Total employment
due to beer was therefore around 75,000 jobs.
›
Graph 30.3. / Total employment because of beer : 75,000 jobs
›
Source : Ernst & Young calculations
6 | Total employment
due to beer
197
30
Portugal