1 | Highlights
2 | Value-added by sector
Another contribution of the brewing sector is the value-
added directly, and that created by the supplying, retail
and hospitality sectors. Value-added can be defined as
the difference between the production value and the value
of purchased inputs (goods and services). Value-added is
used for paying employees’wages and to reward lenders
and entrepreneurs for their capital or entrepreneurship.
For governments in Europe, value-added is an important
measure since they levy a tax on it (VAT, see chapter
2). We estimate the total value-added related to the
production and sale of beer in the European Union
was approximately 50 billion euro in 2010.
This total of 50 billion euro of value-added in the European
Union is generated by 2 million employees working in the
brewing sector and in the supplying, hospitality and retail
sectors. This only includes jobs relating to beer; jobs due
to other aspects of the businesses are not included.
The average value-added per employee is estimated to
be some 24,598
10
euro a year.
03
Brewers contribute 0.42% to EU’s total gross
domestic product (GDP).
50 billion euro is the estimated total value-added
directly and indirectly by the production and
consumption of beer in the European Union in 2010.
For 2008 we calculated a total value added of 55.3
billion euro, so compared to 2008 the 2010 value
added decreased by 10%.
Most of the decline in the value added occurred
in 2009.
Highlights of value-added in Europe (EU-27)
›
Graph 3.1. / Value added due to the production
and sale of beer in the EU: 50 billion euro.
›
Source : Ernst & Young calculation (2011)
(see Annex III for an explanation on methodology).
10,53
10,06
27,84
1,64
Brewing sector
Supplying sectors
Hospitality industry
Retail
10
This is calculated as follows : 53.3 billion euro divided by 2.2 million employees.
29
Value added