26
11
0
0,5
1
Of which
exports
Production
0
5
10
15
20
30
25
40
35
0,3
0
Purchases
of supplies
Value added
Production
value (million €)
Million
hectolitres (hl)
0
100
200
300
400
500
600
700
800
0
20
10
30
40
50
750
20
6
11
Employment
Excise
VAT retail
VAT hospitality
Incomes taxes
and social
security
contributions
Taxes, excise and social
security contributions (ssc)
brewing sector (million €)
5
2 | Market structure, trends
and developments
3 | Direct effect
of the brewing sector
With a consumption of 0.39 million hectolitres in 2008,
Cyprus is one of the smaller beer markets in Europe.
The majority of beer in the local market is produced
by Cypriot Breweries. There are two breweries on the
island : Photos Photiades Breweries and KEO Plc. Their
annual production has decreased in recent years from
410,000 hectolitres in 2008 to 340,000 hectolitres in 2010
(-17%).
25
The decline in consumption is 11%.
Due to the fact that Cyprus is a small country, most
of the goods purchased for the brewing industry come
from abroad. All agricultural inputs and most of the
packaging materials are obtained from the European
mainland. Utilities (e.g. water, electricity), transport and
storage are purchased on the island.
Factors that infuence the impact of the brewing
sector on the Cypriot economy are the following :
Brewing sector internal characteristics :
A consolidated market with two breweries.
Although there are imported beer brands on the market,
the majority of beer sold is locally brewed.
Cypriot export has more than halved from 10,000
to 4,200 hectolitres of beer per year. However,
beer import increased by 30 percent.
According to the Cyprus brewers association, there was
a signifcant increase in the price of raw materials and
packaging during the second half of 2010.
Context in which the brewing sector operates :
Tourism generates a signifcant number of consumers
for the local beer market.
The Cypriot brewing companies employed 750 people in
2010. These workers together produce a value
representing 37 million euro (45 million in 2008), of which
approximately 26 million euro was spent on purchase of
goods and services from supplying sectors. This means
that the Cypriot breweries realise about 11 million euro of
value-added.
25
Source : Cyprus Brewers Association, 2011.
›
Graph 12.1. / Direct effect of the beer sector
›
Source : Ernst & Young calculation (2011)
The Contribution made by Beer to the European Economy
78