This study focuses on the economic impact of the
brewing sector in Europe (27 European Union Member
States plus Croatia, Norway, Switzerland, and Turkey).
Although the brewing sector is international in scope
and many brewing companies are organizations
operating as multinationals, the analyses were carried
out at country level. In this manner, the impact on the
individual national economy could be measured.
The base year for the analysis is 2010. If data was not
available for this year, data for 2009 or 2008 was used.
Some of the reported outcomes are estimated on the
basis of a model constructed by Ernst & Young The
Netherlands and Regioplan Policy Research. For this
reason these outcomes are not a direct representation
and are dependent on decisions made by Regioplan
Policy Research. These decisions are elucidated in
Annex III.
To represent the economic impact of the brewing
sector, three different effects can be distinguished :
Direct impact.
Indirect impact.
Induced impact.
The
direct impact
is defned straightforwardly as
the effect generated directly by the brewing sector.
The
indirect impact
represents the impact of breweries
on their suppliers. To be able to produce beer, breweries
need to purchase a highly diverse range of goods
and services. To mention just a selection : barley malt,
hops, water and many types of packaging materials
such as glass and aluminum. Breweries also hire
engineers, marketers, communications agencies and
many more services. In this study, seven supply sectors
are distinguished : agriculture (raw materials); utilities;
packaging and bottling industry; transport and storage;
media, marketing and communication; equipment,
manufacturing and other industrial activities; and
other services.
The sale of beer by retail outlets and hospitality
frms is an important source of economic benefts.
The economic contribution of frms in the retail and
hospitality sectors arising from the sale of beer is labeled
in this study as the brewing sector’s
induced impact
.
The above-mentioned effects have been measured
in three areas (
employment, value-added and
government revenues
). It is important to stress that
these are not additional effects, but rather three ways in
which the same effects can be looked at. Together this
results in nine dimensions :
Direct impact
Indirect impact
Induced impact
Employment
Total number of jobs
in the brewing sector
Total number of jobs in supply
sectors resulting from the
production and sale of beer
Total number of jobs in the
hospitality and wholesale/retail
sector resulting from the sale
of beer
Value-added
Value-added by brewing
companies
Value-added in supply sectors
resulting from the production
and sale of beer
Value-added in the hospitality
and wholesale/retail sector
resulting from the sale of beer
Government Revenues
Excise revenues resulting from
the production and sale of beer
and income tax and social
contributions from employers
and employees in the brewing
industry
Income tax and social
contributions from employers and
employees in supply sectors
VAT revenues, income tax
and social contributions from
employers and employees in the
hospitality and wholesale/retail
sector resulting from the sale
of beer and corporate and other
taxes
I
Methodology and scope
Dimensions for measuring the economic impact
263
Annex I - Methodology and scope