6%
6%
12%
76%
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 :
About 50% of all beer consumed in Croatia is sold by
the hospitality sector (on-trade), which means almost
1.7 million hectolitres is sold on-trade.
The average consumer price of beer in Croatian pubs
and restaurants remained stable as compared to 2008,
and is estimated to be 3.69 euro per litre (including
VAT)
19
, so that total consumer spending on beer in the
hospitality sector is 612.8 million euro (including VAT).
Net consumer spending on beer is thus estimated at
510.7 million euro (using a 22% VAT rate).
With an average hospitality turnover of 24,630 euro
(excluding VAT) per person, this results in 20,700
hospitality sector jobs attributable to beer sales.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
Around 50% of total beer consumption (1.7 million
hectolitres) in Croatia is in the form of beer sold by
supermarkets and other retail outlets.
With an average consumer price of 1.56 euro per litre
(including VAT)
20
, total retail consumer spending on
beer is estimated at 259 million euro. Total consumer
spending excluding VAT is thus 216 million euro.
With turnover per employee estimated at 135,200 euro
(excluding VAT), this means 1600 people owe their jobs
to retail beer sales.
Approximately 1,726 people are employed in the Croatian
breweries in 2010. Employment in supplying sectors is
very important with a total number employed in these
sectors arising from the brewing sector of around 3,277.
Around 20,700 jobs in the hospitality sector and 1,600
jobs in the retail sector can be attributed to the sale
of beer. The total employment impact due to beer
production and sales in Croatia is therefore 27,333 jobs.
This means that since 2008, the total number of jobs has
decreased by 1800.
The employment impact of the brewing sector is
presented below:
›
Graph 11.3. / Total employment because of beer : 27,333 jobs
›
Source : Ernst & Young calculation (2011)
(see Annex III for an explanation of the methodology).
6 | Total employment due to beer
19
Source : Ernst & Young questionnaire among breweries, 2011.
20
Source : Ernst & Young questionnaire among breweries, 2011.
The Contribution made by Beer to the European Economy
74