5
Production
value (million €)
139
32
0
1
2
3
4
5
Of which
exports
Production
0
50
100
150
200
0
Purchases
of supplies
Value added
Million
hectolitres (hl)
2.800
0
500
1.000
1.500
2.000
2.500
3.000
0
30
60
90
120
150
Employment
Taxes, excise and social
security contributions (ssc)
brewing sector (million €)
48
38
33
5
Excise
VAT retail
VAT hospitality
Incomes taxes
and social
security
contributions
2 | Market structure, trends
and developments
3 | Direct effect
of the brewing sector
The Bulgarian beer market has suffered a substantial
decline in recent years. Production and consumption
has fallen by around 10% over the last three years (since
2008). According to the Union of Brewers in Bulgaria
(UBB), production in 2010 was 4.8 million hectolitres of
which 62,000 hectolitres were exported. Consumption
was approximately 4.89 million hectolitres. The volume of
imported beer doubled since 2008 from 51,000 to 98,000
hectolitres. The average consumption per capita
decreased to 67.
12
There are currently eight breweries in Bulgaria, operated
by six companies.
13
There are also four microbreweries.
Until the democratic reforms in 1989, all Bulgarian breweries
were owned by the State. Subsequently, the brewing sector
was privatised rapidly and, as consequence, a large part
of the beer market is now in the hands of foreign investors
who produce locally- and internationally-branded beers
in Bulgaria. The three largest companies are Zagorka,
Kamenitza and Carlsberg Bulgaria, which have market
shares of respectively 31.0, 28.5 and 27.5 %.
The economic impact of the brewing sector is infuenced
by the following trends, developments and characteristics
of the Bulgarian economy :
Brewing sector internal characteristics :
Decline in local production of malting barley
and other raw materials.
Decline in on-sale and off-sale and a decline
in number of enterprises in hospitality sector.
An increase in PET-bottle sales and a decline
in glass bottle sales.
New key accounts with cheap local beer brands
located in Bulgaria.
Context in which the brewing sector operates :
On 1 June 2009 the Bulgarian National Assembly
adopted legislation for a public smoking ban. However,
the introduction of this ban has been postponed with
amendments in national legislation.To date (July 2011)
the ban has not been introduced.
According to the Union of Brewers in Bulgaria (UBB), direct
employment related to Bulgarian breweries is 2,800 jobs,
which is an increase of almost 17% compared to 2008.
These 2,800 jobs represent a value of 171 million euro.
12
Source : the Union of Brewers in Bulgaria (UBB), 2011.
13
Source : the Union of Brewers in Bulgaria (UBB), 2011.
›
Graph 10.1. / Direct effect of the beer sector
›
Source : Ernst & Young calculation (2011)
The sector generates 32 million euro of value-added.
Of the total production value of 171 million euro, an
estimated 139 million euro is spent on goods and services
produced by supplying sectors.
The Contribution made by Beer to the European Economy
66