4%
80%
5%
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 51% of all beer consumed is sold by the
hospitality sector (on-trade), which means 23.4 million
hectolitres is sold on-trade.
The average consumer price of beer in United Kingdom
pubs and restaurants is estimated at 5.9 euro a litre
(including VAT), so that total consumer spending on
beer in the hospitality sector is almost 13.7 billion euro
(including VAT).
Net consumer spending on beer is thus estimated
at 11.6 billion euro (using a 17.5% VAT rate).
With an average hospitality turnover of 44,355
(excluding VAT) per person, this results in 262,600
hospitality sector jobs attributable to beer sales.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
About 49% of total beer consumption (22.5 million
hectolitres) is beer sold by wholesale and retail.
With an average consumer price of 2.2 euro per litre
(including VAT), total retail consumer spending on beer
is estimated at 4.95 billion euro.
Total consumer spending excluding VAT is thus 4.2
billion euro.
With turnover per employee estimated at 327,040 euro
(excluding VAT), this means around 12,900 people owe
their jobs to retail beer sales.
In 2010, approximately 15,000 persons were employed
in UK breweries. In addition, 36,900 jobs were created in
the supplying sector. Some 262,600 jobs provided in the
hospitality sector and 12,900 jobs in the wholesale and
retail due to sales of beer. Therefore, total employment
due to beer was 327,400 jobs.
›
Graph 38.3. / Total employment because of beer : 327,400 jobs
›
Source : Ernst & Young calculations
6 | Total employment
due to beer
38
257
United Kingdom