10%
9%
30%
51%
Direct effect (breweries)
Indirect effect (suppliers)
Hospitality industry
Retail
5 | Induced effects of the brewing sector
Hospitality sector
The economic impact of breweries on the hospitality
sector is assessed as follows :
Only 26% of all beer consumed in Bulgaria is sold by
the hospitality sector (on-trade), which means almost
1.3 million hectolitres is sold on-trade.
The average consumer price of beer in Bulgarian
pubs and restaurants is estimated at 1.54 euro a
litre (including VAT), so that total consumer spending
on beer in the hospitality sector is 195.8 million euro
(including VAT). In 2008 the average consumer price
was 1.80 euro a litre.
Net consumer spending on beer is thus estimated
at 163.2 million euro (using a 20% VAT tariff).
With an average hospitality turnover of 11,890 euro
(excluding VAT) per person, this results in 13,700
hospitality sector jobs attributable to beer sales.
The number of jobs has been halved in the past three
years; in 2008 the number of hospitality sector jobs
attributable to beer sales was 29,500.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
Around 74% of total beer consumption (3.6 million
hectolitres) in Bulgaria is beer sold by supermarkets
and other retail outlets.
With an average consumer price of 0.79 euro per litre
(including VAT), total retail consumer spending on beer
is estimated at 285.9 million euro. Total consumer
spending excluding VAT is thus 238.3 million euro.
With turnover per employee estimated at 92,900
(excluding VAT), this means 2,600 people owe their
jobs to retail beer sales.
Approximately 2,800 people are employed in the
Bulgarian breweries in 2010. The employment in supply
sectors due to the production and sale of beer amounts
to 8,000 jobs. Around 13,700 jobs in the hospitality sector
and 2,600 jobs in the retail sector can be attributed to the
sale of beer. The total employment impact due to beer
production and sales in Bulgaria is therefore 27,100 jobs.
This means a decrease of 18,400 jobs, in comparison with
2008. The decrease is mainly due to less consumption in
the on-trade sector and the consumption of cheaper beers.
The employment impact of the brewing sector is
presented below:
›
Graph 10.3. / Total employment because of beer : 27,100
›
Source : Ernst & Young calculation (2011)
(see Annex III for an explanation of the methodology).
6 | Total employment due to beer
The Contribution made by Beer to the European Economy
68